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License Agreement

License agreements are binding and enforceable legal documents, which means they have to be drafted properly and duly signed by concerned parties. An enterprise license agreement, for instance, has to mention that parties have rights and duties as stipulated in the business contract. When entering and drafting a license agreement, there is a need to be cautious and frame terms and conditions accurately. Here at HHS Lawyers, we provide assistance in the drafting of a variety of license agreements.

Our legal drafting service for license agreements include:

  • Free initial consultation
  • Expert advisory for contract provisions
  • Drafting of license agreement by seasoned lawyers in Dubai
  • Revisions

Clients seek our assistance in the drafting of license agreements to grant or limit other parties the right in selling, producing, using, or displaying protected materials such as copyrights, trademarks, and patents. Working with both the licensor (owner of the material) and the licensee (party being granted license rights), our team for legal drafting in Dubai helps ensure a license agreement is written clearly and indicates the intentions of both parties precisely. This is to avoid breaches of contracts and business conflicts.

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At HHS Lawyers, our licensing agreement includes all key provisions for the contract to be valid and effective, which are the following:

Identification

This section of the agreement names the parties that are involved. Identification clauses are important when it comes to such type of contract as it clearly indicates ownership of rights.

Grant

A grant clause sets out the extent and scope of rights that will be granted to a licensee, including limitations on said rights. This may include a clause that reiterates the agreement is only a license and not an assignment or transfer of ownership.

Fee and payment

License agreements need a form of payment and consideration, which is often an annual, quarterly, or monthly fee. There are also cases wherein the licensee will owe a licensor royalties on profit made from the licensed product indicated in a product licensing agreement.

Sub-licensing

In this section, it’s to be clarified whether rights will be conferred to other parties as well as its conditions.

Term

Setting of the time period wherein the contract is deemed valid.

Termination

Indicates the conditions on how the contract may be terminated.

Exclusivity restrictions

It’s where parties define when and where the protected material can be used and more importantly, who can and can’t use such.

Other clauses

A license agreement may also include anti-litigation clauses and contract renewal options.

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Patent license agreement

A patent holder has legal rights on the use of a patent and on prohibiting others from unauthorized use. With a patent license agreement, the patent holder allows a licensing partner in making, using, and selling based on the patent with payment in return, which may be in the form of royalties

Trademark license agreement

A trademark license agreement allows a licensee to use a trademark or brand in selling its services or products. A trademark license agreement our inhouse professionals can draft is aimed at protecting the quality and reputation of a trademark or brand.

Copyright license agreement

A copyright is unique as it includes six different rights, namely copy, add or edit, print, perform, reuse, and distribute within a copyright itself. With copyright licensing agreements, a licensor provides someone a number of rights in using a copyright within a pre-determined period.

Enterprise license agreement

With an enterprise license agreement, also commonly referred to as a product licensing agreement, a licensee eliminates the need for frequent registration of a system or product every time it’s used or installed within a set period of time.


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How to determine the important part of a license agreement?

All parts of a license agreement are important, but more focus is placed on the rights of the licensor and licensee, as well as on the price.

What is the difference between a license agreement and a franchising agreement?

A franchise requires another type of license agreement as it’s issued for operating a business with the use of a common trade name with royalties. A franchise agreement may include several different license agreements. For instance, franchise of a restaurant includes license agreements for logo usage on products and use of patented products.

Mention the consequences of not entering into a licensing agreement

Anomalies are to be expected between parties involved without a licensing agreement. Parties face danger of money and time loss as well, which is typically from failed negotiations.