What do I Need to Know About Licensing Agreements?
There are many creative people in the world. When creative people come up with unique ideas, they should protect them to ensure that others use their idea to make money without their permission. This can be done with a license. Licensing an idea ensures the owner protects their rights and interests while being the sole entity who profits off it. While this can seem simple, there are many legal matters that come with licensing an idea. This can include negotiations as well as drafting and reviewing agreements. It is because of this that it is important to retain the services of an experienced New Jersey intellectual property attorney for assistance during this time.
What is a Licensing Agreement?
The main goal of licensing an idea is to explore the potential of the idea and increase the return on it. Any intellectual property can be licensed, including patents, copyrights, and trademarks. With a license, a person can keep ownership of an idea while continuing to make a profit on it. This is possible by giving others the right to use, market, manufacture, distribute, or sell your idea. A licensing agreement can outline the terms of the arrangement between the owner and the other party. This can include the following terms:
- Confidentiality
- Exclusivity
- Territory
- Indemnification
- Timeframe
- Sublicensing opportunities
- Royalty specifications
What Factors Should I Consider?
When a person is thinking about licensing an idea they came up with, there are many different things to consider during this time. This can include understanding the range of the agreement that is made. By obtaining a license, the rights to use the property are limited. An experienced attorney can help the individual keep ownership while having an agreement that entices others and limits the range of use to ensure the idea is not exploited.
Owners should have complete control over the revenue of their idea. There are different ways to ensure this. This can be done by including either a one-time licensing fee or recurring payments, such as royalties, in the agreement. An owner may also be able to create terms in the agreement that require the licensee to cover maintenance fees. These can allow for an increase in the idea’s profit.
Contact our Firm
The Law Offices of Richard E. Novak, LLC is an effective intellectual property law firm that services business clients who need guidance through the acquisition of trademark protection. Our firm has over 25 years of experience in the IP community representing clients through all legal matters, including actions against infringing parties. If you need a law firm to skillfully guide you through any trademark legal issue, contact The Law Offices of Richard E. Novak, LLC for a consultation today.