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When to Use a Licence Agreement

18 Apr 2022

License agreements set out the terms under which one party may use another party`s property. While the properties in question may include a variety of elements, including real estate and personal effects, licensing agreements are most often used for intellectual property such as patents and trademarks, as well as copyrights for written materials and visual arts. In a typical license agreement, the licensor undertakes to provide the licensee with intellectual property rights such as the licensor`s technology, brand name or product creation know-how. In exchange for licensor`s intellectual property, licensee generally pays an upfront fee and/or license fee to the licensor. A licence fee is a continuing royalty paid for the right to use the licensor`s intellectual property. It is important to clearly indicate the period during which the licensee may use the licence area. Although leases are usually long-term, a license is suitable for a short-term contract (e.B. less than 6 months). Obligation of non-competition.

Licensor agrees not to allow anyone to compete with the License in the territory and period specified in the Agreement. Home / Articles Published / Tenants-Licensees, Licensees, Owners-Licensors, New York Eviction Process, Owner-Tenant Process, Good Faith License Agreement / Use of a License Agreement instead of a Rental Agreement Start and End of Agreement. Explain when the agreement is effective and when it ends. Describe the possibility of renegotiating and continuing the agreement at the end of the term. Specify the circumstances in which the agreement could end before the expiry of the term. What ultimately happens with ownership of the product (usually it is returned to the owner)? This section restricts when and where the Licensor may sell its property. It ensures that the licensee may be the only entity that sells that product or service in a particular territory. For example, a Burger King franchisee would like to be the only Burger King in a particular area.

Without this deal, the licensor could allow another Burger King franchise to appear next door. Lawyers for tenants whose clients fail to sign a license agreement in good faith can no longer guarantee that a judgment on the eviction will be delayed for up to six months. If their licensed customers do not cure their norm, customers are subjected to peaceful self-help expulsion from the licensed premises quickly and without further delay. Owners will no longer eagerly forego their income and overdue funds to ensure the recovery of ownership of the premises at any given time. The bargaining lever will shift in favor of the owner-licensor, who can either demand full payment from the defaulting licensee if he wants to avoid eviction, or demand peaceful ownership of the premises with the full support of the law. For homeowners frustrated with the right facts and properties using the latest computerized access systems, this is a long-awaited revolution. A licence agreement can be a convenient way for a landlord to allow another party to occupy their land under a more flexible arrangement. There are many circumstances in which a licence may be more appropriate than entering into a lease. If you are considering entering into a license agreement, contact LegalVision`s rental lawyers at 1300 544 755 or fill out the form on this page. The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that licenses the likeness of a popular superhero to an action figure creator could have significant bargaining power in this negotiation, as the manufacturer is likely to benefit enormously from such an agreement. The film studio therefore has the leverage to take its business elsewhere if the manufacturer is cold on its feet.

However, the use of a license agreement instead of a lease agreement will not completely exclude all possibilities of dispute between the owner-licensor and the tenant-licensee. Whether or not the “self-help” used was peaceful (and therefore legal) or violent (and therefore illegal) is still the subject of legal disputes. However, if there is a valid license agreement, the owner-licensor is not obliged to readmit the licensee to the premises, even if it turns out that the self-help used was violent and not peaceful. In New York, the licensee`s only remedy is the triple damage that RPAPL ยง 853 provides for forced eviction. In the meantime, before a court decision, the owner-licensor is free to sublicense the use of the premises to another licensee. However, some common circumstances are usually governed by a license agreement. Licensing agreements are often used for the commercialization of technologies. Licensees and licensors like to be thorough in their agreements to ensure that nothing is overlooked.

Both parties need to know what rights they have in relation to this relationship. Licensing agreements cover many factors, including the following: Whether a license agreement can work for you depends on: To protect yourself and your business, it`s important to be thorough when creating a license agreement. Both the licensee and the licensor must have a clear understanding of what they are accepting. Before you begin, consider the following tips: Describe how royalties work. What is paid and when? Will the property remain with the original owner for the duration of the license? What happens if the minimum turnover is not reached? Is there an advance on royalties? In order to benefit from a license agreement, the owner must ensure that his agreement with the potential user of the premises is indeed a license and not a lease. This is not necessarily an easy task. If you simply refer to the Agreement as a “License”, this will not be the case. Whether an agreement is considered a licence rather than a lease depends on whether the agreement has or lacks the three essential characteristics of a real estate licence: (1) a clause that allows the licensor to revoke “at will”; (2) the retention of absolute control on the premises by the licensor; and (3) the provision by Licensor to Licensee of all essential services necessary for Licensee`s Authorized Use of the Premises. For a number of its buildings, it unveiled a new type of office space for small tenants who needed smaller spaces. According to his design, a tenant would have a specific office and would share a photocopier, fax machine, kitchen, and conference rooms. Furniture, carpets, phones, computers and coffee would be provided by the owner. The rooms would be pre-built.

The tenant would only have to bring a pencil to be able to work. The Advocate General asked whether it was possible to use a license agreement where he could change the locks or, in this case, turn off the key cards if a tenant defaults. Our firm`s mission was to draft an enforceable license agreement that provides for self-help without having to resort to litigation. This article explains the license agreement – its limits and powers. It also dissects and explains when and how a license agreement is used and the ability to properly engage in self-help. Licenses, on the other hand, do not always require a written agreement to be binding. In fact, a party may be granted a licence without either party ever meeting. For example, if you purchase a ticket to a sporting event, purchasing that ticket gives you a license to enter a sports venue and use a seat on that site for a predetermined period of time. You have not met the owner of the seat, but the purchase of the ticket is a binding agreement between you and the owner. You are allowed to use the seat, but you do not own the seat, and there are certain rules you must follow regarding your conduct in that seat if you wish to comply with the terms of the license.