What is a license agreement?

Sharing intellectual property in a license agreement

Are you the intellectual owner of a good idea with distinctiveness? If so, you may have already filed a patent application on it. If you have been granted a patent, it is possible to earn financial returns by further marketing your idea through licensing to market participants. By providing a license, you allow the market participant to use your innovation to generate income from it. You will then receive financial compensation for the use of your idea. Progest ultimately handles the deal to maximize those financial concessions for you. At all times, Progest will not take over the right of your patent, it remains in our client’s name.

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WHY PROGEST?

Why launch your unique idea with us?

Enorme ervaring en expertise. Wij hebben gewerkt met tal van uitvindingen, dus we weten wat werkt en wat niet.

Bewezen formule gedreven model. Wij hebben een uniek model ontwikkeld waarmee goede vindingen succesvol in de markt gelanceerd worden.

Gecoördineerde en integreerde aanpak. Wij bieden een unieke aanpak op basis van het ‘no cure, no pay’ principe.

Succesvolle resultaten. Wij bereiken constant indrukwekkende marktrealisaties door de juiste stappen te zetten.

What is a license agreement?

A license agreement is a legal agreement between two or more parties, where one party (the licensor) gives the other party (the licensee) the right to use certain rights held by the licensor. These rights may include intellectual property rights such as copyrights, trademarks or patents. That license agreement includes, for example, agreements on what rights the licensee will have. For example, a license agreement may give the licensee the right to use the idea for a limited time. And other license agreements may allow indefinite use of an idea or innovation.

Common types of licenses

The specific license required by a market participant depends on the type of business, location and nature of its activities. Common types of licenses are:

Exclusive license: it is granted to a single licensee. The licensee has the exclusive right to use the property. Other licensees are not possible.
Non-exclusive license: it can be granted by the licensor to multiple licensees.
Full license: this gives the licensee all available rights to use the property.
Limited license: here the licensee has limited rights to use the property.
Free license: it is provided by the licensor to the licensee free of charge.
Paid license: this requires the licensee to pay a fee to the licensor.

There are other types of licensing agreements, depending on the specific circumstances and requirements of the various parties. It is important to read and understand a license agreement carefully before signing it. This is because it contains all the rights and obligations of the parties involved. For all these different scenarios, Progest is able to advise and assist you during the issuance of the license. In addition, our experience shows that by having Progest in place, you are better protected from the potential infringement of market participants.

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HOW CAN WE HELP YOU?

Need advice?

If you have made an invention and do not know how to proceed next, you can request a consultation with us. During this conversation, we take stock of your project, identify your needs and come up with concrete recommendations.

Patent Advice

If you want to protect your invention, filing a patent application is the right move. During this conversation, we will help you file your patent application correctly, quickly and officially.

Licensing

Based on the “no cure, no pay” principle, Progest helps find the right market participant(s). Through our expertise, we can ensure that this process is successful.

Sales support & participation

In promising situations, we are willing to participate in your project on a risk basis. This can be done through a capital injection, but it is also possible for us to actively support you in marketing your invention or innovative product.

What does a license agreement say?

A license agreement is basically form-free. Thus, parties are free to design the content as they wish. Licenses can be agreed upon either orally or in writing. Side note: with oral license agreements, proof is difficult to impossible. Thus, it is advisable to put all agreements in writing in the case of a license agreement. For trademarks, there is an obligation anyway that the license must be recorded in the trademark register.

What important elements to include in a license agreement?

Identification of the parties: the licensor and licensee must be clearly identified in the agreement.
Description of the property: there must be a clear description of the property covered by the license, such as software, music, literary works or trademarks.
Rights granted: it should be clearly indicated what rights are granted to the licensee, such as the right to use, reproduce, sell or rent the property.
Conditions of use: it must be indicated under what conditions the property may be used. What can it be used for, what is the duration of the license and are there any restrictions on use?
Fee: if there is a fee to be paid for the license, it should be clearly stated in the agreement, including the amount and method of payment.
Termination: the license agreement must specify the circumstances under which the license may be terminated, such as for non-payment or for breach of terms.
Liability: it should be clear who is liable for any damage or loss resulting from the use of the property.

Other elements may also be included in a license agreement, depending on the circumstances and wishes of the parties.

Learn more about licensing agreements

Want to know more about licensing agreements? We have extensive experience in marketing new ideas and know what it takes to achieve a successful market launch. We implement a strategic approach that combines patent(s), product development, and selecting the right market participant to exceed goals and achieve impactful results. PROGEST is committed to helping inventors bring their inventions to market, encourage innovation and have a positive impact on society. For more information on licenses and licensing agreements, contact PROGEST’s experts. We would be happy to tell you more about the content and terms of a license agreement.

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