Licensing Agreement Advertising Definition

These agreements are generally time-limited, i.e. licensees retain licence fees only for a limited period of time. This may not be the case for franchises and branded products, but it will almost always be the case when it comes to advertising brand ties, musical rights and other assets for use in temporary initiatives. If an entity wishes to use the assets granted by another entity over a longer period of time, it may be preferable to enter into a strategic partnership with the licensee or to try to acquire the assets involved. One of the most important elements of a licensing agreement is the financial agreement. Payments made by the licensee to the licensee are usually made in the form of guaranteed minimum payments and royalties for sales. Royalties are generally between 6 and 10 per cent, depending on the ownership and the degree of experience and sophistication of the licensee. Not all licensees need guarantees, although some experts recommend that licensees receive as much compensation in advance as possible. In some cases, licensees use warranties as the basis for renewing a licence agreement. If the taker completes the minimum sales figures, the contract is renewed; Otherwise, the licensee has the option of terminating this relationship. As a licensee, you are expected to present the legal agreement ensuring that both parties are fully aware of their respective rights and obligations and beyond simply setting royalties.

Good legal advice is usually needed to negotiate things: many sectors and types of businesses depend on licensing agreements. For example, companies that use software have a licensing agreement with the software owner. Fast food restaurants enter into licensing agreements with entertainment studios to create and distribute toys with popular characters. Examples of intangible assets are a song (“Somewhere Over The Rainbow”), a character (Donald Duck), a name (Michael Jordan) or a brand (The Ritz-Carlton). An agreement for the granting of a licence requires a licensing agreement. A licensing agreement authorizes a company that markets a product or service (a licensee) to lease a trademark from a trademark holder who operates a licensing program (a licensee). [2] If you are willing to move forward with your potential licensee, the decision to hire a licensee (with your intellectual property lawyer) must come next. If your agent is working with you to design a license (for more information below), you should consider your own wishes while anticipating the licensee`s expectations. Subject – a complete description of the product or service offered for licensing. This is also the area in which patent, copyright or trademark numbers, if any, are included.

Licensing agreements are the conditions under which one party can use the property of another party. While the real estate concerned may include a large number of properties, including real estate and personal property, licensing agreements are most used for intellectual property, such as patents and trademarks, as well as copyrights for written material and visual arts. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials. And toy manufacturers regularly sign licensing agreements with movie studios and give them the legal authority to produce action characters based on popular similarities of movie characters. Most commercial assets can be granted, but this type of agreement is most often used for IP assets such as copyright, trademarks and patents. Among the most common products that are granted are: Character Licensing is another major licensing segment of the brand in India. The major players in the character licensing industry in India are Disney India, Viacom 18 and Cartoon Network Enterprises.