License agreement

License agreement

With the license agreement the holder (licensor) retains ownership of the rights but grants to another person (licensee) the right to exploit the item (i.e., to affix the trademark on its products or to manufacture and market a patented invention) for a predetermined period of time, for the payment of a royalty. Royalties may include a fixed part and variable part, usually proportional with the sales or turnover achieved with the trademark or patent. The license can be exclusive, if the holder waives the direct exploitation of the item granted in license and agrees not to grant other licenses, or non-exclusive, if the owner reserves the right to directly exploit the item granted in license or to grant other licenses.


Contracts