License agreement

First of all, it is a tool for doing business, provides legal protection for the parties, guarantees the Licensor income from the transaction, and the Licensee- the possibility of profit. The subject of the License Agreement is the right to apply the results of intellectual activity within the established limits on a given territory and at specified times.

A licensing agreement differs from a trading contract in the intangible nature of the object of the transaction and the possibility of “double” ownership when the Licensor retains intellectual property rights. In this case, the Licensee may transfer the right to use the object to a third party, but only if it is stipulated in the License Agreement.

The objects of the License Agreement may be: literary and artistic works, scientific works, trademarks, service marks, inventions, industrial designs, geographical names, plant varieties and animal breeds, etc.

License agreements may be non-exclusive (provide the transfer of the possibility of using a result of intellectual activity to one or more users while retaining the same opportunities for the primary copyright holder) and exclusive (all rights are transferred to one user without retaining the corresponding rights for the transferring party).

A license agreement is recognized as concluded if its parties have come to a common position on all material issues in terms of the law. In this case, the following conditions must be observed: availability of the subject of the agreement, that is, the right to use the result of intellectual activity; description of products using the said result; scope of rights of the Licensee and Licensor; product quality guarantee; period and geography of activity; the amount of payment transferred to the Licensor (a specific amount is determined by the parties of the transaction or is set at the market value of such goods and services).