Typical Terms of License Agreements
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Term of License Agreements
A license agreement should set out the term of the license. Agreements are often for lengthy, fixed term agreements. A license agreement can include a termination clause.Preventing Infringements of Intellectual Property Rights
License agreements often require both parties to take measures against a third party infringing the licensed rights. This requirement is rational, as it is in the best interests of both the licensor and the licensee that the rights are not infringed. Court proceedings are often very expensive, so the parties should agree in the license agreement on division of the expenses relating to court or arbitration proceedings, as well as on the obligation of each party to assist and provide information to the other party in an action against a third party.Licensor’s Obligation to Maintain Rights
The maintenance of intellectual property rights often requires that certain measures are taken. For instance, the validity of a patent depends on the payment of the annual maintenance fee. Copyrights, which do not require any particular measures, can be mentioned as an exception.License Scope
It is important from the licensor’s perspective that the scope of application of the license is defined with care. The following issues should be considered:Liability of the Licensor
The licensee should ensure, that the licensor commits to liability for validity of the licensee’s rights within the specified territory, and that they do not infringe the intellectual property rights of third parties.Geographical Scope and Exclusivity of the License
When defining the geographical territory, in which the license is valid, in the license agreement, it should be done precisely and made country-specific. For example, a reference to Northern Europe is too ambiguous. It is more certain to define the territory by individually listing all countries within the scope of the license, such as Finland, Sweden, Norway etc. Even a country-specific definition may sometimes be too vague. For example, if the country in question is the USA, it might be more certain to individually list the states within the scope of the license.Definition of the License Object
Granting of license entails usually the right to use or utilize an object, the use of which would otherwise be unlawful. Therefore, it is of utmost importance, that the object and extent of the license is carefully defined. As regards registered rights, the object of the license will be identified by using the identification information defined by the authorities. This means, that the agreement refers to the identification number of a registered trademark or patent. In case the agreement applies to a right that has not yet been registered, the application number can be used for registration purposes.
Showing 1-7 of 7 legal articles
Term of License Agreements
A license agreement should set out the term of the license. Agreements are often for lengthy, fixed term agreements. A license agreement can include a termination clause.Preventing Infringements of Intellectual Property Rights
License agreements often require both parties to take measures against a third party infringing the licensed rights. This requirement is rational, as it is in the best interests of both the licensor and the licensee that the rights are not infringed. Court proceedings are often very expensive, so the parties should agree in the license agreement on division of the expenses relating to court or arbitration proceedings, as well as on the obligation of each party to assist and provide information to the other party in an action against a third party.Licensor’s Obligation to Maintain Rights
The maintenance of intellectual property rights often requires that certain measures are taken. For instance, the validity of a patent depends on the payment of the annual maintenance fee. Copyrights, which do not require any particular measures, can be mentioned as an exception.License Scope
It is important from the licensor’s perspective that the scope of application of the license is defined with care. The following issues should be considered:Liability of the Licensor
The licensee should ensure, that the licensor commits to liability for validity of the licensee’s rights within the specified territory, and that they do not infringe the intellectual property rights of third parties.Geographical Scope and Exclusivity of the License
When defining the geographical territory, in which the license is valid, in the license agreement, it should be done precisely and made country-specific. For example, a reference to Northern Europe is too ambiguous. It is more certain to define the territory by individually listing all countries within the scope of the license, such as Finland, Sweden, Norway etc. Even a country-specific definition may sometimes be too vague. For example, if the country in question is the USA, it might be more certain to individually list the states within the scope of the license.Definition of the License Object
Granting of license entails usually the right to use or utilize an object, the use of which would otherwise be unlawful. Therefore, it is of utmost importance, that the object and extent of the license is carefully defined. As regards registered rights, the object of the license will be identified by using the identification information defined by the authorities. This means, that the agreement refers to the identification number of a registered trademark or patent. In case the agreement applies to a right that has not yet been registered, the application number can be used for registration purposes.