Licensing Agreement 

 Give someone permission to do a certain activity or to use your property.

Overview.

A license allows the creator (called a licensor) of the intellectual property (IP) to profit from the invention or creative work by charging the user (referred to as a licensee) for the use of the property. The property being licensed can be in the form of real, personal or intellectual property. If your business is in the position to license property then a licensing agreement is necessary to fully protect your patents, trademarks, copyrights, trade secrets, and other forms of licensable IP.

Licensing agreement lawyers can help document the entire agreement in writing, specifying how the licensee may use the property and the payment arrangement for such use. An agreement should also detail the dispute resolution process in the event that someone violates the licensing agreement.

Benefits of legal advice.

Ensure your agreement is fair

Licensing agreement lawyers have experience dealing with these types of agreements. As such, the attorney will notice any terms that could cause problems for your business down the line.

Confidently use again 

If you’re licensing out the same property, with similar terms, then you can probably continue reusing the licensing agreement that was drafted by an attorney.

It’ll help with negotiations

Even if your agreement is a “done deal” it helps to have an experienced attorney take a look at the terms. An attorney can give you advice for when it’s time to renegotiate or if you enter into other subsequent licensing deals.

FAQ.

Why should I hire an attorney to draft a licensing agreement?

Consulting with attorney before licensing your IP is strongly recommended. An attorney will be able to identify and address the terms that will be vital to your licensing agreement. Also, an attorney can help negotiate the terms of the licensing agreement. After all, licensing your IP is relinquishing some of your company’s most valuable assets so it’s important to do it right.

What are the different types of licensing agreements?

There are three main types: sole licenses, non-exclusive licenses, and exclusive licenses. You’ll have a good idea of what type of license is best for your business after consulting with a licensing attorney.

What type of business entity is a buy-sell agreement intended for?

A buy-sell agreement can be used for all business entities, including C-Corps, S-Corps, and LLCs.

Must a buy-sell agreement ever be updated?

A buy-sell agreement should be updated if there is a change in circumstances such as a new owner, new spouse of an owner or other personal matter.

How does a company formulate its value when a buy-sell agreement is triggered?

It’s important to include a valuation formula in the buy-sell agreement. This allows owners to discuss and vote on the how the company should be calculated. Failing to do so can cause a ton of controversy, including litigation costs and having to hire a professional appraiser.
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