Are your licences up to the job?

    February 2010

    Licensing intellectual property (IP) forms the cornerstone for many businesses and although licensing is a useful business tool, licensing disputes are increasingly becoming more common and have the potential to have serious commercial consequences. Before entering into a licence you need to give careful thought to the nature of the licence, including the following:

    • What is the IP being licensed?
    • Whether the license will be exclusive (licensor may not use the IP or grant other licenses) or non-exclusive (licensor may use the IP and grant other licenses)?
    • Whether the licensee can grant sub-licences?
    • How much assistance the licensor will provide?
    • Will the licensee be restricted to using the IP in a particular field of use, a particular distribution channel or a specific territory?
    • The payment obligations