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Sub Licensing Agreement Disadvantages

Why sub-legislate IP rights? Pros and Cons Product License. (n.a.). Retrieved from In a franchise agreement, royalties can be paid weekly on sales generated at the cash register. This can be an automatic process directly withdrawn from a bank account or the sale of batches. However, for many license agreements, license payments are only offered once a quarter. This means that it can take 5-6 months before you see your first license right useful as a licensor, even if your product performs well in other markets. A licensing agreement is a contract between two parties (licensor and licensee) in which the licensor gives the licensee the right to use the licensor`s trademark, trademark, patented technology or ability to produce and sell goods. In other words, a license agreement allows the licensee to use the licensor`s intellectual property. Licensing agreements are typically used by the licensor to commercialize their intellectual property.

The company should also have products in the same category. If we go back to the example of yesteryear via a children`s cup, you can get a licensing agreement with a well-established babysy company that is already on the market successfully. They do not want to compete with the products the company already produces, but to increase the value of the existing product line (“Getting Started as an Entrepreneur”, 2019). This way, it is much more likely that you will put a lucrative agreement. It can take a lot of effort and determination to find the right licensee. To give your product the highest chance of success, you should think a lot about evaluating potential licensees and structuring your license agreement. One of the most passive and lucrative ways to make money is by licensing your product, idea, or service. In fact, it can be considered one of the fastest ways to become a millionaire. In this article, I`ll talk more about licensing and what you need to know about it. If one element of the licensing relationship is mismanaged, both parties may see a reduction in the brand reputation of the intellectual property concerned. If multiple licenses are offered, the reputation can suffer worldwide and concern several companies that are not involved in the situation. The only way to solve this potential management is to have good quality management practices.

This is why many licensing agreements contain a number of best practices to follow in order to ensure consistency within the brand beyond all licenses.. . . .