How It Works
A licensing agreement is a written agreement between two parties in which a property owner (known as licensor) permits another party (known as licensee) to use that property under specific terms and conditions.
All subject matters of the intellectual property rights, such as music, design, artwork, photograph, video, sound, etc. can be licensed by the owner of such material.
The license can be of various different kinds, such as excluive or non-exclusive, worldwide or limited to a specific jurisdiction, assignable or non-assignable, etc. The licensor can choose the kind of license he/she wants to grant to the licensee.
Laws governing Licensing Agreements in India
The different laws which govern various aspects of Licensing Agreements in India are as follows:
- The Indian Contract Act, 1872
- Copyright Act, 1957
- Trade Marks Act, 1999
- Design Act, 2000
- Patents Act, 1970
- Competition Act, 2002
- Stamp Duty Act (State specific)
- Senior Expert Lawyers: We will get your document drafted/reviewed by Expert Senior lawyers, skilled in Intellectual Property Laws. You can track the progress of your document on our platform at all times.
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Our standard deliverables for every document drafting includes:
- 60 Minutes of Talk-Time with the Lawyer for drafting/reviewing the Agreement
- First draft of the documents will be delivered to you within a maximum of 2 working days
- Post-delivery of the first draft – Iterations in the master Document to incorporate your suggestions/changes
Contents of Licensing Agreement
A well drafted Licensing Agreement contains the following:-
- Details about the subject matter being licensed
- Duration of the license
- Mode of payment
- Provision of payment of royalty
- Exclusive or non-exclusive license
- Territory of usage
- Representation and warranty
- Grounds of termination
- Other legal clauses
Frequently Asked Question
I want to receive royalty for my license. Is it possible?
Yes, in fact with Licensing Agreement, it is very common.
There are variety of ways that you can earn royalty through your license. It can be captured accordingly in the Licensing Agreement.
Who is considered to be the first owner of copyright?
According to Section 17 of the Copyrights Act, 1957, the first owner of copyright is defined as under:
"Subject to the provisions of this Act, the author of a work shall be the owner of copyright therein."
Section 17 statutorily recognizes the author of the work to be the first owner of the copyright.
I want to transfer the complete ownership of my IP. Should I enter into this Agreement?
No. In that case, you should execute IP Assignment Agreement.
What is the importance of Licensing?
Licensing is the most effective solution for protecting your intellectual property.
A licensing agreement allows owners of intellectual property to authorize third parties to use, alter, or resell the property for a mutually agreed-upon price, without transferring ownership to the third party.
The terms of the agreement are flexible and can be adopted as per the understanding of the parties.
What is the important of entering into the Licensing Agreement?
A well drafted licensing agreement helps the author/owner of the IP rights, to protect its IP rights from infringment and exploitation. It can also be presented as an eveidence in the court of law in case of such infringment.
Waht is the difference between licensing and assignment?
The primary difference between the two is that a License allows the Licensor to maintain their rights and interest in their IP, whereas an Assignment transfers all of the Assignors rights to their IP and assigns it to the Assignee.
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