More on the clause by clause breakdown of a general Licensing Agreement:
Usually at the end of the contract Preamble is the following line:
NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions hereto contained, it is hereby agreed as follows:
1. GRANT
1.1 The Licensor grants to the Licensee the right to use the (describe Property) and certain trade marks in association with the (mention your products or services you intend to use the Property on or with), shipment, marketing and distribution of the products within the Licensed territory. The rights to use the Property and trademarks are granted to the Licensee and are restricted to the (list products the Property will be on or used in conjuction with) and may not be assigned, sub-licensed or granted to any additional parties.
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The Grant of Rights clause determines what the Licensee is getting and what they can use the Property on and for. The above is a brief version of this clause and I would recommend that a more detailed explanation be given on what the Licensee products are and how the Property will be used.
Usually the Licensor will not allow the Licensee to re-license their use or rights of the Licensor’s Property to another Party and this is why the last sentence is there.
The next installment is Licensing Agreement #4 Term.
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As most of you know, I am not a lawyer or an accountant and recommend everyone seek their own legal counsel and accounting advice in such contractual matters. I also provide negotiation consulting advice which are expressed on the ‘services’ page of this website.
Hope this breakdown helps you understand the intricacies of a Licensing Agreement. Should you have any questions contact me at info@Playdigm.com – please put Licensing in the subject line of your email.