How to Resolve License Agreement Disputes?

October 3, 2024    commerciallawyersinperth
How to Resolve License Agreement Disputes?

A License Agreement is an official legal contract between two parties — the Licensee and the Licensor, where the licensor has to permit the licensee to use a particular property under a specific set of parameters and conditions.

In some cases, there are certain license disputes creating significant consequences for both parties. There is a particular license agreement dispute resolution process that we are going to discuss further in this blog.

License Agreement Dispute Resolution Procedure –

There are a few steps that one must follow while dealing with resolving disputes that may arise between the parties during the license agreement. These are:

1. Notice

Among the licensee and the licensor, whoever is claiming the dispute must notify the other party regarding the issue. This is one of the first steps that is essential to follow to resolve the dispute.

Read More – Mistakes to Avoid in Drafting License Agreement

2. Representation

Within seven business days of issuing the notice, each party has to nominate a representative who has not been involved in the license agreement dispute before.

3. Negotiation

Now comes the option of resolving the dispute, where the representatives will try to have a direct negotiation between the two parties to resolve the dispute faster.

4. Arbitration

If a particular resolution for the dispute is not reached within 28 business days, then the dispute is further submitted to the arbitration in Victoria under the Commercial Arbitration Act 2011.

The few essential things to consider while resolving a license agreement dispute will include:

  • It is important for both parties to choose a particular approach that is best suited for them.
  • If any of the parties are a foreign entity, then in that case legal advice should be taken.
  • If no agreements can be reached among the two parties, then court proceedings should be taken.

Meditation is also a common form of alternative dispute resolution (ADR) in Australia. It is the procedure in which an independent mediator helps both parties identify their issues, consider different options, and develop alternative dispute resolutions.

Contractual Agreement to Arbitration of the Disputes

An Australian party to a license agreement can agree contractually to have all or a few disputes (must be clearly identified in the agreement) determined by final arbitration rather than the process of litigation and where the arbitration will be happening.

The contracting parties can easily agree to resolve the disputes by any means of alternative dispute resolution, which also includes arbitration.

There is also no requirement that the arbitration procedure has to be conducted in Australia, and if an alternative jurisdiction is used, then the only practical consideration has to be ensured where the jurisdiction was a party to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958.

What Should You Check in a Standard Licensing Agreement to Avoid Disputes?

A license agreement will generally include some terms and conditions that are acceptable to the licensor. The points that you must check for a standard agreement are:

  • Specification of the intellectual property that is being licensed.
  • Detailed scope of the agreement and the way and to which extent licensing for the property is taking place.
  • Mentioning the territory clauses stating the place in which the intellectual property is being licensed.
  • Check the limitation clauses, which will mention the extent of the utilization of intellectual property and its limits.
  • The duration clauses will mention the period for which the intellectual property is being licensed.
  • You must also check the terms of renewal, which will state the period when the license of the intellectual property has to be renewed.
  • The license agreement should also mention the means through which the intellectual property will be earning money for the licensor, along with the amount.
  • The agreement should also mention whether the intellectual property license can be sublimated or transferred. If yes, the procedure also has to be mentioned.
  • Other legal clauses like taxes, indemnities, rights to terminate the agreement, and more have to be clearly stated in the license agreement.

How Can Commercial Lawyers Help in License Agreements?

Commercial lawyers have extensive experience dealing with agreements and licensing. They will help as follows:

  • The Licence Agreement Lawyers Perth will instruct on the desirability of the Agreement clauses as per the requirements of the customer.
  • They will also ensure the incorporation of commitment and rights, tax assessment results, and instalments in the written licensing agreement.
  • The lawyers will instruct on the terms and conditions of the agreement after proper consideration.
  • The corporate lawyers will efficiently collaborate with the authority professionals.
  • They can also counsel and guide the customer on reaching the license agreement assertions.
  • The lawyers will be helpful in resolving any license agreement disputes as well.

To Sum Up

While creating a written license agreement, there might be certain minor disputes that need to be addressed by both parties. Representative negotiation is the best way in which these disputes can be easily resolved.

Before that, you must check out the standard licensing agreement properly and avoid these disputes firsthand. You can also get services from commercial contract lawyer Perth who will help you curate the agreement properly

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