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