If you invent something with the intention of selling it, you can license it while still retaining ownership of the invention. In other words, the people and companies that you may license your technology to only retain use of your invention, according to any terms you agree to. Or, if you are interested in using a certain technology, you may be hoping to license a technology from someone else.
Obviously, licensing can be a lucrative business, and many industries thrive on Licensing Agreements. These industries range from the entertainment industry to defense contracting. Navigating these industries is difficult due to their extensive licensing agreements, and experienced legal counsel is highly beneficial in obtaining fair licensing terms for both licensors and licensees.
Software and Technology Licensing
Software and technology companies are increasingly licensing their inventions, which requires intense preparation of License Agreements and related legal documents. The License Agreements themselves can include terms that define the ownership of software, how to install it, and how to use and maintain it. Every aspect must be technical and detailed. Before someone can use software created by someone else, there are also legal documents that must cover liability, customization, warranty information, royalties, and indemnification. Primarily, there are three main parts of a Licensing Agreement:
- Financial Terms: the payment terms for using a technology, which can include upfront payment, payment upon achieving certain financial statuses, payment upon regulatory approval, royalty payments, technical assistance fees, and usage fees.
- Exclusivity: obviously one of the more contested “deal breakers” for companies, exclusivity affects whether someone else can penetrate the market or whether a business can expand by preventing others from use. This is a hotly negotiated issue.
- Documentation: an accurate reflection of the final license deal, which includes rights for use, room for growth, and exit strategies for terminating the License Agreement.
Contact a Minnesota License Agreements Attorney
While it may seem like a lot of work to buy or sell licenses, Vlodaver Law Offices, LLC is your trusted advisor and works as outside, in-house counsel on an on-demand basis. This means that you can go about your business while we take care of all of the legal dealings, ensuring every document is properly completed and submitted and with terms that protect your interests. If you are interested in buying or selling licenses to technology, contact us for a free consultation.