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ARTICLE · 24 SEPTEMBER 2014

8 things to consider when negotiating a licence agreement

Marque Lawyers
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As a licensor or a licensee, here are some tips you should consider when negotiating your next licence agreement.

AustraliaIntellectual Property
Kim Middleton
Kim Middleton
Daphne Koffel (Formerly With Marque Lawyers)
Daphne Koffel (Formerly With Marque Lawyers)
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A licence grants a party the legal right to use a product owned by someone else. As a licensor or a licensee, here are some tips you should consider when negotiating your next licence agreement.

  1. Exclusivity. Will the licence be exclusive or non-exclusive? As a licensor, don't limit yourself to granting an exclusive licence unless you are being properly remunerated.
  2. Term. Will the term be perpetual or limited? Consider limiting an exclusive licence to a specific period so you have the flexibility to re-negotiate its conditions.
  3. Limitations. What limitations (if any) will the licence impose on the licensee? These may include geographical boundaries or usage limits. As a licensee who is also a service provider, ensure you are granted the right to sub-license to your customers where necessary.

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