Licensing Agreements

A licensing agreement is a legal contract between two parties, in which one party (the licensor) grants to the other party (the licensee) the right to use or sell a certain intellectual property, product, or service in exchange for compensation, such as royalties or licensing fees. Licensing agreements are common in industries such as technology, entertainment, and pharmaceuticals, where companies need to protect their intellectual property while still allowing others to use it for a fee. The agreement specifies the terms and conditions of the license, including the duration of the agreement, the territories in which the license is valid, the permitted uses of the licensed property, and any restrictions on those uses. The agreement also sets out the obligations of both parties, including payment obligations and any restrictions on the licensee’s ability to modify or resell the licensed property.