There are many individuals out there, who are pretty familiar with the word Intellectual Property, but they do not know what it is. IP or Intellectual Property points towards legal and enforceable rights, which arises from all the fruitful new designs you make.

It can stand out as an application, invention, brand, design, or logo of your idea. Intellectual Properties comes in various forms, and each of them has their own benefits. But when you own an intangible asset like this, it will be pretty valuable for you. They have become pretty crucial to the economy, which is given birth to mobile technology and software. 

Licensing Agreement for IP: Things you must consider

Licensing and IP will grant you the legal rights to utilize the product, which is owned by another individual. With the help of the license, it will protect the proprietary rights within computers and software items. If you want to permit someone to utilize your intellectual property, you can do so through the licensing agreement. But before you take any step further, there are several things you must consider. Look below!

1. 1. The Spellings: Spelling errors or mistakes are pretty common these days, which occur in many documents. But some spellings are pretty important, and typing or writing incorrectly will give rise to unwanted situations. The spelling of LICENCE gets used within the US, but here in Australia, the spelling is LICENSE. There are several other words, which have different spelling, but the meaning is the same. Keep in mind to use the right spelling when signing a licensing agreement in Australia. 

2. 2. Exclusivity: Before you sign the agreement, you need to check whether or not the license is non-exclusive or exclusive. When you are the licensor, there is no need for you to limit yourself when it comes to granting an exclusive license until and unless you’re compensated properly. To know more about the exclusive and non-exclusive license, you can consult with the Intellectual Property lawyers and they will provide you with the information you need. Their assistance will definitely help you make the correct decision. 

3. 3. Escrow: Software licenses are something, which every licensee must check and make careful considerations. You must require the source code of all the business-critical software, which are held in escrow if the licensor goes out of business. Requiring the source code of a particular software is something you must do before signing up for the licensing agreement. 

4. 4. Intellectual property: The IP or intellectual property stands out as a licensed item, which gets retained by the licensor. When the license carries the rights, where you can modify or enhance the item, you need to consider which party owns the IP when it comes to modifications or enhancements. The party who is responsible will take care of all the modifying work with no hassle. 

5. 5. The fee: When signing the licensing agreement, you must check whether there is a license fee involved or not. If there is a perpetual fee involved, you need to pay it upfront. Before signing the licensing agreement, you also need to check whether you have to pay a fee if the license gets terminated. Speak with the Property lawyers about such areas, as they can provide you with an in-depth understanding of it. They are well-versed in these matters and will fill you up with the things you want to know.

6. 6. Quality assurance and monitoring: To provide plenty of protection to their products, the licensors have to conduct monitoring and tests of sales. The test might carry the initial sample of the product or intellectual property that will ensure it is acceptable. Make sure to conduct periodic checks on the product quality. If you want to know if the products are getting heavily discounted or not, you must monitor the sales without fail. 

How to create a licensing agreement for intellectual property?

To create a licensing agreement, contact the licensing agreement lawyers, who will help you understand the process well. They will tell you exactly how to create the agreement without facing difficulties. Otherwise, you can follow the tips given below, which will help you create a successful licensing agreement.  

1. 1. Establish your ownership: The first thing you must do is establish the ownership. When you are buying or selling a product, you need to make sure that the product’s ownership is mentioned within the agreement. Apart from that, you must stay well aware that no one else is using the product and make sure to get the file or trademark registered for copyright. It’s because you don’t wish to get into an agreement and encounter that someone else is questioning the ownership of that asset. 

2. 2. Pay attention to the definition: You need to check that the process or the product is clearly and properly described within the agreement. Doing so will prevent any unwanted misunderstanding from occurring and stop problems from taking place in the future. 

3. 3. Explain how exactly the royalties work: Within the agreement, you need to explain what gets paid and when, and whether there is an advance on royalties. You also need to describe the things that can occur when minimum sales are not met. 

4. 4. Check out the government regulations: There are several restrictions on the licensee, as it depends on the type of products that are been sold and to whom they’s getting sold. For instance, there are several products, such as weapons that cannot be sold within several nations or Australian states. For such reasons, taking the government regulations is highly important.

Ending Note

Licensing Agreement is crucial for all intellectual properties, and a well-drafted one will lead towards success. The IP is pretty complicated, and the licensing process is filled with business and legal judgments and needs a degree of specialization. To have a good understanding of the licensing of Intellectual Property, you must seek help from a professional attorney. They will provide you with invaluable information when it comes to drafting the agreement. They will teach you how to handle complex situations.