What is a Breach in a Licensing Agreement?

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At the time, you may have thought that a licensing agreement was a great way for your intellectual property to gain exposure, all while allowing you to collect additional revenues and royalties along the way. Unfortunately, you may realize that this agreement is working to your detriment. More specifically, this is if the licensee commits a breach of the agreement. Read on to discover what is considered a breach and how a seasoned New Jersey licensing agreement lawyer at The Ingber Law Firm can see if you have a case on your hands.

What is considered a breach in a licensing agreement?

Firstly, a licensing agreement is an agreement between you, a licensor, and another party, a licensee. Based on the terms and conditions within the agreement, a licensee gets clearance to use some of your specific intellectual property rights in a specific manner. In turn, you may earn revenues and royalties. Therefore, a breach in a licensing agreement may occur in any of the following ways:

  • The licensee uses your intellectual property in a manner that is outside the bounds of the licensing agreement.
  • The licensee allows another party to use your intellectual property who is not authorized in the terms of your licensing agreement.
  • The licensee does not distribute the full amount of revenues or royalties that were promised in the terms of your licensing agreement.
  • The licensee continues to use your intellectual property even though the term of the licensing agreement has since expired.

What do I need to do to remedy this breach?

Rest assured, there are ways in which to remedy a breach in your licensing agreement. The most effective way, especially for such a drastic breach, is to pursue legal action against the negligent licensee. So in your litigation proceedings, you must seek to recover any of the following damages that apply:

  • The actual damages you incurred, such as the loss of revenues and royalties.
  • The remedies dictated by the licensing agreement itself, such as arbitration and additional royalties.
  • Statutory damages, which is an award amount stipulated within the statute rather than the degree of harm you incurred.
  • An injunction, which is an equitable remedy that has the licensee refrain from committing a breach again in the future.
  • An order to pay for your legal fees, such as attorney fees and court fees.
  • An order for the cancelation of the licensing agreement.

In the end, you must do everything in your power to protect against the unlawful appropriation of your hard-earned intellectual property. This is to say that you must not question your instinct to retain the services of a competent Essex County, New Jersey intellectual property lawyer. Our team at The Ingber Law Firm will work to determine the legal option that best suits you.