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.

The license agreement may also provide that one of the parties can take legal action against a third party at its expense. The agreement should define the splitting of potential damages between the licensor and the licensee.