A licensing agreement is a legal contract between two parties,
known as a licensor and a licensee. In a typical license agreement,
the Licensor grants the Licensee the right of use and a limited
license for commercializing the products in his ownership under
certain conditions. On the other hand, the Licensee takes upon
himself a number of conditions with regards to using the product,
and agrees to make payments to the Licensor, known as
royalties.
One of the main issues in
technological licensing agreement relates to rights of
ownership in the licensed product. When dealing with a product
ready for distribution the matter is relatively simple, the
Licensor reserves the exclusive ownership in the product. But when
the licensed product requires additional development and/or creates
derivative work, the matter of ownership rights in the
"upgraded" derivative is even more important, and the
answer is not unequivocal. In this article we will focus on
licensing
