As such, it decided to enter into an agreement with HeadSoundz, a manufacturer specializing in the manufacture and sale of audio equipment. To do this, PhoneMe must grant rights to its brand, trade name and brand on HeadSoundz, so that HeadSoundz can use PhoneMe`s unique branding on headphones, packaging and marketing. Both parties enter into a licensing agreement. Both sign a licensing agreement confirming that HeadSoundz PhoneMe will pay a royalty rate of 5% of net sales on a quarterly basis, in exchange for the use of the PhoneMe brand, trade name and brand for a period of 3 years. None of the parties participating in this licensing agreement are delegated to tasks without prior notification or authorization. Any party may request the termination of this contract at any time during this agreement, by written notification. If you are considering granting your intellectual property or becoming a licensee, you must be familiar with licensing agreements. A company`s licensing agreement is a central element of any licensing agreement and ensures that both parties are properly compensated for their contributions. In this article, we explain what a licensing agreement is and give you an example of when it could be used. At the end of this page, you can download a license agreement so you can see an example of what is included in a license agreement and how it is designed. If, at any time, one or more conditions of this licence agreement were to be considered unenforceable or non-applicable, the parties agree to replace a similar clause or condition to replace the wrong clause or condition.
While there are no specific laws that prescribe what should be in a licensing agreement, most intellectual property contracts are governed by federal law, such as the Copyright Act of 1976. If you own the intellectual property, it only takes a few minutes to create a licensing agreement and get paid for your work. You may have a patent or a trademark. Or maybe you`re the person who wants to use a poem, logo or a unique manufacturing process for a while. The owner deserves compensation. A licensing agreement helps you determine the big things, including the benefits. The non-application or non-application of one element of this licensing agreement does not constitute a waiver of another aspect of the agreement. Grantee undertakes to track all products and products and to provide Grantor with a monthly summary of all the above articles, including all royalties due for the month. With the exception of a violation of this agreement, neither party is liable for the violations, losses, damages or costs that may result from third parties in this licensing agreement resulting from the actions of the other parties.