Licensing agreement

Common types of licensing agreements

  1. Trademark licensing: Allows the licensee to use the licensor’s trademark on products or services.
  2. Patent licensing: Permits the licensee to use, produce, and sell the patented invention.
  3. Copyright licensing: Grants the licensee the right to use copyrighted material, such as books, music, or software.
  4. Technology licensing: Involves the transfer of technology-related intellectual property, like software or trade secrets.
  5. Brand licensing: Enables the licensee to use a brand’s name, logo, or image for marketing and product development.

What is a brand licensing agreement?

A brand licensing agreement is a type of contract where a brand owner (licensor) permits another party (licensee) to use its brand name, logo, or other brand elements for a specified period and under certain conditions. This helps the brand expand its market reach without directly manufacturing or selling products.

Does Coca-Cola use licensing?

Yes, Coca-Cola uses licensing extensively. The company licenses its brand name, logo, and other trademarks to third parties for use on various products, enhancing brand visibility and reaching new markets.

Differences between brand extension and licensing

  • Brand extension: Expands a brand into new product categories or markets under the same brand name, managed directly by the brand owner.
  • Licensing: Grants third parties the rights to use the brand name or elements on their products, allowing for broader reach with less direct investment by the brand owner.

Is Coca-Cola a trademark or copyright?

Coca-Cola is primarily a trademark. The name, logo, and unique design elements are protected under trademark law, granting exclusive rights to use these symbols in commerce.

FAQ

What is included in a licensing agreement?

A licensing agreement typically includes the scope of the license, duration, payment terms, quality control requirements, and termination conditions.

Can a licensing agreement be terminated early?

Yes, a licensing agreement can be terminated early if both parties agree or if specific conditions outlined in the agreement, such as breach of contract, are met.

Are licensing agreements legally binding?

Yes, licensing agreements are legally binding documents that create enforceable rights and obligations for both the licensor and the licensee.

How are royalties calculated in a licensing agreement?

Royalties can be calculated as a percentage of sales, a fixed fee per unit sold, or other negotiated terms, depending on the agreement.

Do licensing agreements require notarization?

Notarization is not typically required for licensing agreements, but it can add a layer of validation and authenticity to the document.

About this template

A licensing agreement is a legal contract between two parties in which one party (the licensor) grants the other party (the licensee) the right to use certain intellectual property under specific conditions. This agreement outlines the terms and conditions for using assets such as trademarks, patents, copyrights, or technology. Businesses commonly use licensing agreements to expand their products or services by leveraging established brands or technologies.

Reviewed by 
Viktor Kessler
Co-Founder Notch
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