Another important element of a licensing agreement sets the timing of the agreement. Many licensors insist on a strict market release date for products licensed to external manufacturers. Finally, it is not in the best interests of the licensor to grant a license to a company that never markets the product. The license agreement also contains provisions relating to the duration of the contract, renewal options and termination conditions. In close collaboration with patent and/or trademark and design lawyers, you support our specialists in negotiations that must lead to licensing or sales agreements, in the design of contracts and in the evaluation of contracts of other parties. Since we have experience in negotiating and creating contracts, we can conclude the most advantageous contract, whether you are licensed or licensor, buyer or seller, in agreement with you. Our advice can usually be a huge advantage for you. Pay attention to the definitions. Make sure the product or process is described in a complete and clear manner to avoid any misunderstanding about what is allowed.
Trademark licenses include the right to use the trademark of certain items and in a certain way. Explain the monitoring and quality assurance process. A first product test model should be established, which must be approved before the products can be produced. The quality of the product should be checked regularly. Monitoring of product sales should be spelled out. Who determines the price of the product? Can products be reduced? Payments. As noted above, the licensee generally pays royalties to the licensor. There may be an initial advance on royalties, and then the ongoing license fees are based on sales.
Royalties can be paid on the basis of a percentage of turnover or a lump sum. Think about the most appropriate method for both parties (and don`t forget about inflation and exchange rates). Here`s another example: Salvatore has a line of T-shirts with a distinctive look that he has protected by trademark law. He sells a license to make the T-shirts to Carol, who pays him an advance and royalties based on the number of T-shirts they sell. Subsidiary license. The licensee may be granted the right to authorize another person to manufacture or sell his products. This depends on the specific terms of the license agreement. Monitoring and quality assurance. To protect its product, the licensor requires specific testing and sales tracking. Tests may contain a first sample of the product to ensure that the quality is acceptable. The licensor may require periodic checks of the quality of the product.
In addition, the licensor has the right to control the sale, to verify that the products are not too small and that the quality is maintained at a high level. Monitoring may also focus first on the discovery of ownership. If you sell or purchase a license for a product, make sure that ownership of that product is clearly stated in the agreement. Also, make sure that no one else is using the asset (for example. B a trademark) and obtain that the trademark is registered or the registration of a copyright. You don`t want to get into a license agreement and then find out that someone else is questioning the property.