Reasons for Terminating a Licensing Agreement

Correctly filed licences are the foundation of all property negotiations and business endeavours. Each business, profession, or service in an industry has unique claims and ideas that set it apart from its competition. Licences form this vital asset.

That’s why strategically safeguarding your licences’ integrity is crucial for any venture’s survival and growth. The best commercial lawyer Perth will be able to guide you with the correct ways and grounds for terminating any license you have remaining and have exhausted the use of.

Once you are done using the crown land, you need to fulfil all of the prerequisite conditions to get your license nullified. Here, we have discussed some of the crucial aspects related to licensing agreements.

Why is it crucial to protect licenses?

Getting licensed is the most basic part of any property discourse. Usually, however, we think about licences in terms of intellectual property licences. They make any business venture or creative endeavour identifiable. These ideas, inventions, and assets facilitate the development of any profession or industry.

For example, in the publishing industry, a book, an idea or research proposal is licensed by the writer or the author. Similarly, in developing any new invention or cosmetic product, its formulation is licensed by the manufacturing brand.

However, in Australia, general licences also refer to land and property usage. The license also applies to property and land ownership.

Responsibilities licensees must adhere to

A licence, as stated earlier, is held over Crown Land. This contractual agreement gives the licensee the right to occupy and use the designated land for specified and outlined purposes. The department gives out these licences through public tender or through inviting any expression of interest unless there are circumstances that merit direct negotiation.

• You have to pay an annual rent, which will be reviewed by the department regularly.
• This could be for a specified or unspecified time frame.
• You cannot transfer the license unless it’s in exceptional condition.
• You have to heed the conditions in the license agreement dispute resolution.
• You have to pay local government rates to the local council.

How are licences determined?

As briefly described earlier, a license is an authority and permission granted by Crown Lands. It gives you permission to use and occupy Crown land for specific reasons. However, even with a licence, it will not give you exclusive use and possession rights to the land.

A general license is used when there are several purposes that the licence is needed for. It could be because of activities like access, grazing, events, film, or other short-term licences that cannot be procured.

The department has the authority to issue licences to companies, individuals, and community organisations for different purposes, including:

• Irrigation
• Pipelines
• Structures
• Site Investigations
• Community Facilities
• Wind Farms
• Solar Farms
• Storage Of Bulk Materials

When can licences be terminated?

Just as you can register an IP, you can also remove it. Licences can be nullified at any time upon the request of the licensee. Some reasons may include:

• The licensee has failed to comply with the prerequisite conditions
• The area under license has been acquired
• A determination of native title consent
• Aboriginal land claim or agreement or Indigenous land use agreement has been granted over the land.

Usually, a field inspection ensures that all requirements have been fulfilled or met before termination.

Sometimes, you might have to undertake designated activities, such as remediation of the land, removal of any structures or paying off any outstanding amounts before termination.

Any overpaid funds are always refunded. However, terminating a licence does not waive any outstanding funds for the licence. Any amounts remaining upon termination will have to be continued until repaid.

How are licences terminated?

A licensee can also be nullified if you apply to terminate it by fulfilling the “Terminate a Licence” online application.
The licence holder must make sure that they meet the stated applicable actions before the filing eh form so that the department will consider doing away with the license agreement:

• Use and occupation of the Crown land has ended.
• The Crown land is barricaded from any adjacent freehold land (if applicable).
• Any invasive, unwanted species or weeds have been eradicated or removed in the last six months.
• All garbage has been cleaned.
• The land has been restored to a clean and sanitary condition.
• All conditions and prerequisites of the license and special conditions have been completed.
• All stock has been removed.
• There is no more outstanding debt.
• All rent has been paid.
• Any additional structures installed have been removed.

Summing up

The preservation of the rights to licences is an indispensable part of protecting the integrity of ideas and their impact on the way various industries develop and grow. The licensing agreement lawyers Perth are well-equipped and adept at identifying and registering the various kinds of licences. You can contact the best lawyers for consultation, who can guide you perfectly!