When forming a corporation, you may have many options available.
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A license agreement is an agreement in which one company or party permits another company or party to use the first party’s property, goods, brand name, technology, or other intellectual property. Licensing agreements can include copyrights, patents, trademarks, and trade secrets. Usually, in a license agreement, the company or party issuing the license will receive royalties or payment for the use of the company’s property, goods, brand name, or technology. License agreements can be used in a range of scenarios. Let’s say you run a successful business and you want to create a franchise. A franchise is one type of licensing agreement. Or, let’s say that you have developed a specific business process that gives you a competitive advantage in your area. You may be able to sell this process as a trade secret.
License agreements can allow an independent store owner to use your trademark, trade secrets, and other successful practices in their business in exchange for royalties and fees. Or, let’s say your company created a successful phone application or piece of software that other companies might find valuable. With a licensing agreement, another company can use that software in exchange for payment or royalties. Big-name brands might license their logos so that companies can use these trademarks in their marketing. Consider, for example, the alliance between a local restaurant and a local baseball or football team. License agreements can benefit both parties. The licensor gets paid and the person using the license can get access to trade secrets, marketing material, brand recognition, and technology they otherwise would not be able to access or develop on their own. However, when entering into a license agreement, it is important to protect your rights and interests. Contact Legal Counsel, P.A. and consult with our license agreement lawyer in Orlando, Florida who can assist you if you need to create a license agreement or are considering entering into a license agreement. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
License agreements can cover a range of business needs and goals, and can differ widely from case to case. If you plan to enter into a license agreement or need to draft a license agreement, you may want to speak to our qualified license agreement lawyer at Legal Counsel, P.A. in Orlando, Florida. In many such agreements, the contract will clearly outline how royalties and other payments will be made. Will royalties be paid in the form of a percentage on all sales, or in the form of an up-front sum? The license agreement will also clarify what is being licensed, what the limitations are, and what the responsibilities of both parties are. Generally, license agreements are in place for a set period of time. This protects the licensor’s right to trademark, copyright, and ensures that ultimate ownership resides with the licensor.
If you are licensing your brand name or trademark, it is important that the purchaser meet basic standards for quality. After all, you don’t want the poor actions of a licensor to harm the reputation you have worked to build. A licensing agreement will generally cover the standards a licensee must meet in order to continue using the license. Furthermore, if you are licensing your trade secrets, brand name, or software, you will also want to protect your ownership of the material. A properly executed licensing agreement can make clear that the purchaser is only purchasing a license to the product and is not purchasing ownership of the brand or product.
In general, licensing agreements will include a specific description of the product or license being sold, proof of ownership through trademarks, patents, or copyrights, and details about the license itself. Where will the license be valid? What are the rights of the license holder? The licensing agreement should also be specific about payment and about restrictions on the license. A license agreement will also specify the time period for which the license is valid, and may also include non-compete and non-disclosure clauses to protect trade secrets and processes. Finally, a license agreement may include provisions for how disputes may be handled.
While it might be tempting to use a template license agreement if you are a small business, it is important to remember that every business is unique and these templates may not always consider local laws and regulations. Your property is valuable. Protect it by getting your license agreement right. Contact Legal Counsel, P.A. and consult with our qualified license agreement lawyer in Orlando, Florida today. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
Before you can create a licensing agreement, you’ll need to register your trademark and establish ownership over your property, goods, brand name, technology, or other intellectual property. In some cases, you may need to resister a trademark or file for a patent. You’ll need to be very clear about what you are selling in your license agreement. Is it a business process or practice or is it a trademark? You’ll also want to ensure that you are following local and federal laws. Contact Legal Counsel, P.A. and speak with our licensing agreement lawyer in Orlando, Florida who can help you understand your responsibilities before creating a licensing agreement and can help you create a licensing agreement that will meet your needs. These can be complex documents. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.