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ARTICLE · 27 MARCH 2014

Managing Risk Under Intellectual Property Licences

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A lot is written about structuring robust intellectual property licensing programs, whether from the perspective of licensors or licensees of intellectual property rights.

South AfricaIntellectual Property
Chris Bull
Chris Bull
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A lot is written about structuring robust intellectual property licensing programs, whether from the perspective of licensors or licensees of intellectual property rights. This requires a careful consideration of legal, tax and regulatory issues that impact on the licensing arrangement.

The legal risks can't always be managed adequately through the careful negotiation and drafting of a licence agreement. Some of these risks need to be managed independently of the drafting of any agreements.

One example of this is the risk to the licensee of the licensor (owner of the intellectual property rights) becoming insolvent. This is an issue that has become particularly relevant in recent years with an increase in insolvencies.

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