At a retail store, you may see a hat with the logo of your favorite team (i.e., NFL team) or you may see a shirt with the logo of an iconic corporate entity (i.e., Coca-Cola). Well, this is all made possible by a licensing agreement. And just as well, you may be able to get your brand out there with this legal tool. Continue reading to learn how you can make a comprehensive licensing agreement and how an experienced New Jersey licensing agreement lawyer at The Ingber Law Firm can guide you in doing so.
What is a licensing agreement?
Essentially, a licensing agreement is a contract between you, the licensor, and another party, the licensee, for their right to use your intellectual property. This contract will protect your rights and interests in your intellectual property, but it will also hold considerable potential for profit for both you and the licensee.
How can I create a comprehensive licensing agreement?
In order to get the fullest potential out of your licensing agreement, you must include certain terms and conditions. Examples of such include, but are not limited to, the following:
- Details about payment: make sure it is stated how much percentage of profit both you and the licensee will make from the sold intellectual property, along with how and when you will receive your rightful payments, among other things.
- Details about exclusivity: make sure it is stated that your licensee has exclusive distribution rights and exclusive licensing rights to your intellectual property. This means that they are obligated to purchase all of your requirements for your intellectual property and they must not sell it to any competitors.
- Details about territory: make sure it is stated where in the world the rights to your intellectual property are being licensed for. For example, your license may be exclusive to the United States and non-exclusive to the rest of the world.
- Details about sub-agreements: make sure it is stated whether you and/or the licensee can make sub-agreements regarding your license. For example, you may want to allow another licensee to simultaneously use your intellectual property.
- Details about quality assurance: make sure it is stated that you have specific expectations as to how your intellectual property is to be manufactured and distributed, among other things. This means that if your intellectual property does not meet your test standards, then you may have the right to remove it from the market.
Overall, you must ensure that the provisions of your licensing agreement are clear and concise so that you and your licensee do not run into any problems down the road. For assistance with drafting this contract, reach out to a skilled Essex County, New Jersey intellectual property lawyer today.