April 11, 2021 by Uncategorized 0

Purpose of a License Agreement

Purpose of a License Agreement

Software license agreements can protect you and your organization from litigation. If a user feels that your software has caused them such a significant problem that it warrants a lawsuit, even if the case is frivolous, the absence of a license agreement could cause you to spend huge sums of money to hire lawyers and defend yourself. When creating a software license agreement, you should consider the following four areas: Purpose. A detailed description of the licensed product, service or trade secret. This part may contain a patent, copyright or trademark number. In the rights clause, you must explain how you, the publisher, retain the rights to the software even after the license. You must represent that you retain the rights to the Software itself, copyrights, intellectual property rights and distribution rights. A license agreement is a written agreement between two parties in which one owner allows another party to use that property under a certain set of parameters. A license agreement or license agreement typically includes a licensor and a licensee. At Sequoia Legal, we know that every piece of software is different, which is why we work with you to develop a software license agreement that reflects the nature of your product.

We know how software licenses work and we don`t stop until the contract suits you. To protect yourself and your business, it`s important to be thorough when creating a license agreement. Both the licensee and the licensor must have a clear understanding of what they are accepting. Consider the following tips before you begin: It`s important to create the right license agreement. This gives you the opportunity to anticipate possible opportunistic lawsuits or tactics, whether related to the crash of your software or a user`s misunderstanding of how the software should be used. This article is only a general overview of license agreements; It is not intended to be complete and should not be used to prepare a legal document. Using a template that you find on the Internet is dangerous because it cannot meet certain laws and your own situation. Sub-agreements. In the license agreement, as with other types of contracts, there may be sub-agreements. For example, Licensor may require a non-disclosure agreement to prevent Licensee from disclosing proprietary product features or processes to third parties. Licensee may require Licensor to sign a non-compete clause to prevent Licensor from breaching the Agreement by allowing someone else to sell the Product in Licensee`s Exclusive Territory. If someone has a franchise, there may be a license agreement, and there may be several types of licenses within the franchise.

For example, a McDonald`s franchise could include licenses to use the McDonald`s logo on products and packaging, and another license to manufacture its patented processes or product ingredients. Unlike the sale of an asset, the licensor remains the final owner of the asset or methodology; limited rights to use what Licensor owns are transferred, not ownership. The alternative to a license is the actual sale of the asset to the buyer, but most licensors still want to be owners so that they can use the asset in the future or in other territories or applications. It is essential that the licensee acknowledges that, unlike full ownership, the license is only a set of rights that the licensee receives with ownership of all remaining rights of the licensor. Licensing simply means granting another person the right to use an asset they own for specific purposes and usually for a specific payment or series of payments called a “royalty.” In most cases, a party licenses the right to sell or exploit any goodwill it possesses, such as. B intellectual property, product or methodology. Some examples include a license to develop and promote a patented product and sell it in a specific territory; a licence to use its own product as part of a mixture of products sold; a license to use a trade name or logo to sell a product in a specific location; the license to publish a copyrighted work that you have written, etc. etc. This section restricts when and where the Licensor can sell its property. .