The owner of an IP right can decide to exploit the IP right by granting licenses. By means of a license, the owner of the IP right agrees that the IP right can be used by a third-party against payment of a license fee or the provision of other advantages.
The basis for granting a license can be an industrial property right such as a patent, a utility model, a trademark or a design. However, the basis may also be know-how, in particular technical know-how, which the company owns and wishes to license. In the patent field mixed license agreements that regard both patents and know-how are frequently found.
The owner of an IP right may grant an exclusive license that conveys the right to use the invention to a single licensee. Alternatively, a non-exclusive license may be granted to a plurality of licensees.
A license agreement should regulate the main issues of the license, including the granting of an exclusive or a non-exclusive license, the determination of the subject matter of the license, the determination of the geographical area of the license, the license fee, the term of the license, potential restrictions of the license, e.g., with respect to particular embodiments, and the right to grant sublicenses.
I look forward to providing advice with respect to the drafting of license agreements and negotiations with a potential licensor or licensee.