Generally speaking, a licensing agreement is a legal agreement between you, the owner and licensor of a certain intellectual property, and a third party, as the licensee, who is interested in using it legally. Specifically, you may allow the licensee to use, distribute, and modify your intellectual property in exchange for royalties or other forms of revenue generation. Importantly, there is no “one size fits all” type of licensing agreement, so to speak. Rather, you must carefully craft a contract that works in your and the third party’s best interests. Without further ado, please continue reading to learn the different types of licensing agreements at your disposal and how an experienced New Jersey licensing agreement lawyer at The Ingber Law Firm can help you opt for the most appropriate given your piece of intellectual property.
What are the different types of licensing agreement for my intellectual property?
Namely, there are three common types of licensing agreements: exclusive, non-exclusive, and sole licenses. Firstly, an exclusive license may authorize the licensee with the sole rights to use your piece of intellectual property. In contrast, as you may already assume, a non-exclusive license may let you license the piece of intellectual property to multiple licensees simultaneously. Finally, a sole license gives a single licensee the chance to use your piece of intellectual property, similar to an exclusive license. The only difference here is that you may still get to use your intellectual property for your separate business ventures and projects at the same time.
How do I know which licensing agreement to choose?
In short, the right licensing agreement for your intellectual property depends on what you wish to get out of it. For example, an exclusive license may be in your best interest if you want a single licensee to maximize their efforts in using, distributing, and modifying your piece of intellectual property, without being held back by direct competition by other licensees in the marketplace. Here, you may be able to foster a strong partnership that may carry on into future ventures and projects. All the while, you may place yourself at a powerful position in the marketplace, enough to significantly heighten both your and your licensee’s profits.
However, a non-exclusive license may be better if your business strategy is to spread your intellectual property across various marketplaces. This is specifically if you want your intellectual property to be multifunctional in that it is used and distributed in different ways. In the end, a greater reach may translate into a greater revenue stream. Then, consider a sole license if you wish to maintain more control over your intellectual property while also allowing someone else to use it and help you out in the marketplace. This option is arguably the happy medium between an exclusive and non-exclusive license.
If you need legal representation fast, a skilled Essex County, New Jersey intellectual property lawyer is prepared to step up. The team at The Ingber Law Firm looks forward to meeting you, working with you, and helping you.