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Licensing Agreements

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What else you might like to know about Licensing Agreements

If your business is entering into a licensing agreement with another business or individual, seeking help from a legal service provider should be your next step. Here is some basic advice and guidance to inform your choice of legal expert.

What is a licensing agreement?

A licensing agreement allows one party to utilise another party’s intellectual property. This can include the use of characters, likenesses, trademarks or confidential business practices.

What is the benefit of licensing?

Granting a license under a licensing agreement allows the IP holder to generate money from the use of designs, products, trademarks or patented ‘works’. There is generally a sizeable fee involved in purchasing a license and the IP holder will also typically be paid a percentage of the profits from any licensing agreement. Licensing is also often seen as away of enhancing brand recognition.

What about licensing software?

Software can be licensed to companies or individuals under the same principle. Software that has been developed by a for-profit organisation is technically the intellectual property of that business, and if you wish to use it for your own needs you will need to purchase the license. In some cases you may need to buy a license for each unit that the software is installed on.

How can I find the best legal service provider?

Licensing agreements are particularly complex and can vary greatly depending on the context of business purpose and the nature of the intellectual property. For this reason an experienced and specialist legal service provider is recommended. You may also wish to consider the location, reputation and cost of a firm before making your decision.


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How will a legal service provider charge me?

Due to the varying complexities of licensing agreements, it is common for this service to be charged out at an hourly rate.

What happens if a licensing agreement is broken?

If the terms of a licensing agreement are broken and the situation cannot be resolved amicably, a claim may be pursued by one or both parties. Under these circumstances a legal service provider may be required to begin mediation or proceed to court action.

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