If the agreement does not work and the licensee wishes to terminate the contract before the contract expires, clearly defined termination provisions must be included in the contract. As in other agreements, the parties should be able to terminate the licence agreement in the event of a substantial breach. Licensing agreements are an important benefit to businesses and, when a business is acquired, it can be one of the things the purchaser is looking for. You can add an amazing financial value to the contract by including a section that gives the party the right to award the agreement to the other party. In this way, all parties can benefit from the benefits of the contract, even if they are sold. More importantly, both parties have the protection to veto the award of the contract if they do not feel comfortable with the new party. Christian, Glynna K. „Joint-Ventures: Understanding Licensing Issues.“ The licensing newspaper. Licensing examples are available in many different sectors. An example of a licensing agreement is an agreement between software copyright holders to a company, which allows it to use computer software for their day-to-day activities. An international licensing agreement allows foreign companies, either exclusively or exclusively, to produce an owner`s product in a specified market for a specified period of time.
If you are preparing to enter the international market, you should learn about the general concepts and principles that you will encounter in this context. Resources to be explored include the websites of the U.S. Department of Commerce, the Small Business Administration and the Federation of Associations for International Trade. An international licensing agreement is an essential part of global activity and allows one company on one site to gain direct access to the market from another. Read 2 min The licensee also reserves the right to terminate the licence if the licensee does not meet the minimum delivery thresholds. The termination clauses should inform the parties of what is happening at the time of termination and concern the return of all proprietary materials to the licensee. If the company is a U.S. company, it will want to handle all litigation in the United States. It is very important to specify the choice of law and to approve the licensee of the U.S.
jurisdiction in the agreement. Since, in this type of entry, the transmission of knowledge between the parenting company and the licensee is important, the decision to enter into an international licensing agreement depends on the host government`s respect for intellectual property and the licensee`s ability to choose the right partners and prevent them from competing in the other`s market. Licensing is a relatively flexible labour agreement that can be tailored to the needs and interests of the licensee and licensee. The main advantages and reasons for an international licence for international expansion are: licensing agreements identify the conditions under which one party may use the ownership of another party.