What are Licensing Agreements?
There are many creative people in the world who come up with their own unique ideas. When they do, it is important to have them protected so that others cannot use their ideas without their permission. This can be done with a license that ensures the owner protects their rights and interests so they are the sole entity who profits off their idea. Licensing an idea is not always easy. The process can include many negotiations and documents. Continue reading below to learn more and contact an experienced New Jersey intellectual property attorney for assistance during this time.
What is a Licensing Agreement?
By licensing an idea, the owner can increase the potential of the idea and any return on it. Any intellectual property can be licensed. This includes patents, copyrights, and trademarks. A license allows ownership of an idea while the creator continues to profit on it. Profit is possible by giving others the right to use, market, manufacture, distribute, or sell the idea with the permission of the creator. This is done with a licensing agreement that outlines the terms of the arrangement with the following terms:
- Confidentiality
- Exclusivity
- Territory
- Indemnification
- Timeframe
- Sublicensing opportunities
- Royalty specifications
What Factors Should I Consider?
When licensing an idea, there are many different things to consider. This can include understanding the range of the agreement. When a license is obtained, the rights to the property can be limited so that the idea cannot be exploited. Owners should have complete control over the revenue of their idea. This can be ensured by including either a one-time licensing fee or recurring payments within the agreement. The owner may also include that require the licensee to cover maintenance fees that can increase the 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.