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What Is A Licensing Agreement In Business Terms

Who can get a licensing agreement? The list leads the arc of a multinational conglomerate to a one-person operation. But in general, a licensee looks for the strongest company in terms of finance, manufacturing and marketing. The good news for small businesses is that strength is not necessarily measured in dollars or longevity. In addition to the details of all parties involved, the licensing agreements define in detail how the parties granted can use properties, including the following parameters: this article is only a general overview of licensing agreements; It is not complete and should not be used to prepare a legal document. Using a model that you find on the Internet is dangerous because it cannot address certain laws and your own situation. Start and end of the agreement. Say when the agreement will be reached and when it will end. Describe the possibility of a renegotiation and continuation of the agreement at the end of the agreement. Please consider the circumstances under which the agreement may expire before the expiry of the term. What happens to the possession of the product at the end (usually it is converted into owner)? Those who enter into a licensing agreement should consult a lawyer, as there are complexities that are difficult for those who do not have a deep understanding of intellectual property law. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials. And toy manufacturers regularly sign licensing agreements with movie studios and give them the legal authority to produce action characters based on popular similarities of movie characters. Technology transfer license agreement for technology development in Indonesia, Mochtar, D.A.

(2016). Social Sciences, 11 (24), 5958-5962. This paper discusses technology and its positive contribution to the economic benefits of a country through improved living standards, human dignity and civilization. The author used Indonesia as a case study. The author informs us that each country has obtained its own technology transfer regulations, which depends on how it has made technological progress. Technology transfer should focus on a country`s economic benefits to avoid cases where some countries are still undeveloped despite technological advances. The main concern should be the technology transfer licensing agreement between the technology provider and the final recipient. On the other side of the coin, you could be the one who has the interest of conceding the well-known brand of another company. For many, this may seem like the key to a gold mine: putting a Notre Dame logo, a lion king character or a Star Wars graphic on your product is a guaranteed success, right? Licensing agreements are often used for the commercialization of technologies.

The license. The license itself is described, with details on the time limits (one year?), the scope (U.S., global?) of the license, and the assertion of exclusivity. Details of what the licensee can do with the license (use, sale, sublicensing, distribution and export, etc.). The licensing agreement should contain a language dealing with the issue of property disputes. What happens, for example, if someone challenges ownership of a trademark you have licensed? Or, what happens if someone plagiarizes the copyrighted work that is licensed? Both parties to the licensing agreement should agree on how to deal with these issues. Understand taxes. The royalties paid by the taker are recorded as commercial expenses. Royalties must be charged as revenue to the licensee and reported on Form 1099-MISC. Ask your tax expert about the tax impact of royalties.