Tips to Choose the Right Types of License Agreement as Per Requirement

In today’s economy, intellectual property is an important asset.

But how will you use these to make a profit?

This is where contracts that grant permits can be helpful. This document states that the party who owns the IP is allowing another party to use that IP.

Here, the former receives a royalty when the latter uses it. However, when a proper license agreement doesn’t exist, there can be instances of foul play.

In this blog, we will explore the different types of licensing agreements. We will also understand how commercial lawyers can help us to gain access to such authorisations. So, let’s continue reading to find out.

Types of Licensing Agreement –

1. Unilateral Licensing

This contract is made between the licensor and the licensee. The former prefers such agreements as they can make money without sharing it with others. The latter also benefits from such authorisation as they only need to deal with one party.

2. Bilateral Licensing

This agreement is made between two permit providers and two individuals getting the license. This benefits both parties as the licensors can share the profit among themselves. Apart from them, the licensees also save some time as they only have to deal with two companies. A license agreement lawyer in Perth can help you acquire such documents.

3. Multilateral Licensing

This process of authorisation is rare. It has three or more licensors and licensees who agree to permit a product for manufacturing. They allow you to do this under specific terms and conditions.

4. Exclusive Licensing

Such an agreement limits the usage of materials that require permission. They keep this power restricted within a single party or a group. The permit granter agrees not to license the same IP to anyone else during the mentioned period. For example, this permit can grant its holder the sole right to use a trademark commercially.

5. Patent Licensing

It allows the owner to permit someone else to use their patent. This can help the holder to get their copyright manufactured and distributed widely. The people or organisations that create these materials are not the ones who can mass manufacture and distribute them.

This permit makes it easier for someone else to handle the production and business side of the product. Finally, this process benefits the patent by continuously receiving royalty payments.

6. Trade secret Licencing

This classified information is unique. They are not recorded with the state authority. However, they are most valuable when registered with the federal government.

They are only protected through their secrecy. For example, the formulas or recipes used in making McDonald’s burgers. They come with NDAs, which state that the parties receiving this information can not share it with anyone.

7. Software Licensing

This agreement allows its owner to use the defined program. It is beneficial for software developers who want to build a core application. They plan to customise this app for specific clients.

How do you choose the license as per requirement?

• The purpose of the permit needs to be specific. It must state the reasons clearly and what the owner can do with the copyrighted material.
• You must decide if you want an exclusive, non-exclusive or sole license. This will decide whether you want to share your PI with others.
• Geographical limitations need to be mentioned clearly in the permit. It will specify the area where the licensee can use the patented material.
• The duration of the license needs to be stated in the agreement. In the case of perpetual authorisation, the owner buys the right to use the IP only once. After that, they can use it for a lifetime. Conversely, in the case of a term license, the licensee can pay a one-time fee, or they can also pay per use. This is more common across all industries.

Before investing in a permit, be sure to read the termination clause. This section will inform you how and when every party can cancel their agreement.

How can commercial lawyers help you?

These professionals have experience and knowledge when dealing with such agreements. They can instruct you on the desirability of the clauses according to your customer’s needs. Such professionals can explain the terms and conditions clearly to you. They can help you incorporate rights and commitments into the written document. Lawyers can collaborate with authority professionals and guide you in case of a license breach.

Wrapping up 

The world of licensing agreements can be complex. Understanding the various types is the first step. You can choose the permit you need by considering the type of intellectual property involved and the exclusivity you need. If you want to seek guidance for such issues, you can rely on the top Commercial Lawyers Perth.

You can contact them via phone calls or email to schedule a meeting. They will understand your requirements and suggest the best license for your needs.