What Happens if I Undergo Licensing Agreement Litigation?

Contact UsAsk A Free Legal Question

starbucks coffee logo

Gaining a licensing agreement with another party’s intellectual property may be a great benefit for your business. With this, it is pivotal that you abide by the terms and conditions of your agreement precisely. Otherwise, the other party may take legal action against you. Continue reading to learn what happens if you undergo litigation and how an experienced New Jersey licensing agreement lawyer at The Ingber Law Firm can represent you during your case proceedings.

What is a breach of a licensing agreement?

First of all, a licensing agreement is a type of agreement between you and the owner of an intellectual property that gives you the right to use a piece of their property in a specific manner. This is so you can earn profits all while giving the owner a specific amount of revenue and royalties.

So, a breach of a licensing agreement is when you overstep the allowance that an owner has granted you. For example, you may have infringed upon the scope of the grant, where you may have stepped outside the exclusivity of the license, the territory in which the license can be established, or the timeframe in which the license can be utilized. Details on this are as follows:

  • A breach of exclusivity: this is where you continue to license this piece of intellectual property to other parties, even though your agreement states that only you can utilize it.
  • A breach of territory: this is where you continue to go beyond the borders of where you can utilize this piece of intellectual property, even though your agreement states specific geographic restrictions.
  • A breach of term: this is where you continue to utilize this piece of intellectual property, even though your agreement states the specific duration of time you are allowed to do so.

What should I expect when I undergo licensing agreement litigation?

Though the breach of your licensing agreement may have been unintentional, the owner may nonetheless take legal action against you. With this, the owner may be seeking to recover damages. Examples include, but are not limited to, the following:

  • Injunction relief (which may restrain you from doing certain acts or rather act in a certain way).
  • Statutory damages (which damage amounts may be established by the law).
  • Actual damages (i.e., lost royalty fees, lost revenue, etc).
  • Remedies directed by the licensing agreement itself (i.e., additional royalties, additional revenue, etc).
  • Cancelation of the licensing agreement.
  • The intellectual property owner’s attorney’s fees.

The worst-case scenario is that you may be facing criminal penalties. The bottom line is that you need strong legal representation with experience in litigating these matters. Without further ado, you must retain the services of a skilled Essex County, New Jersey intellectual property lawyer immediately. We can assure you that we are passionate about your case, so contact us today.