A company might also want to grow and diversify by expanding its product line to absorb excess production or marketing capacity, offset seasonal ups and downs, or simply increase profitability with a proven product. Companies may not have the in-house skills, time, or money to develop their own new products, so it can be very attractive to get a proven product quickly through licensing. As of 2020, there are different licensing possibilities for software with different licensing models that allow software providers to flexibly benefit from their product offerings. Christian, Glynna K. „Understanding Joint Ventures: Licensing Issues.“ The Licensing Journal. October 2005. The royalties of a license agreement are usually 6 to 10 percent. It depends on factors such as the quality of the intellectual property, the experience and needs of the licensee. A licensor may authorize a licensee to market products under a trademark. With such a license, the licensee can use the trademark without fear of trademark infringement by the licensor. Licensing often depends on certain contractual conditions. The most common terms are that a license only applies to a given geographic region, only for a set period of time or for a single stage of the value chain. In addition, there are different types of taxes within the trademark and trademark license.
The first form requires a royalty independent of turnover and profits, the second nature of the royalty depends on the productivity of the licensee. Due to the legal basis they must cover, some licensing agreements are quite long and complex. But most of these agreements cover the same fundamental points. These include the scope of the agreement, including exclusivity or territorial restrictions; financial aspects, including necessary advances, royalties and the calculation of royalties; guarantees for minimum sales; calendars with „to market“ dates, contract duration and renewal options; the rights of the lessor to monitoring and quality control, including the procedures to be followed; the minimum stocks to be maintained; and returns and allocations. Sample licenses are available in many different industries. An example of a license agreement is an agreement between software copyright holders and a company that allows them to use the computer software for their day-to-day activities. Non-competition. The licensor undertakes not to allow anyone to compete with the licence in the area and period specified in the agreement. Access to innovation at Harvard should be as simple as possible.
Our licensing agreements are fair and reasonable, and experienced OTD employees work with you to help you achieve your business goals. To give you an idea of how these licenses take shape, we are happy to provide you with a number of model agreements here. If you have any questions about these models, please contact us. This type of agreement allows Harvard researchers who are starting a new company to license non-patentable, copyrighted software they have developed as part of faculty research efforts. In cases where there is patentable content such as unique algorithms, please read the „Basic Exclusive License“ model agreement published above. A reference to global access – The development of technologies stemming from Harvard`s patent rights can lead to licensed products that could result in considerable public health benefits in developing countries. . . .