Licensing agreements generally provide that a „substantial breach” of the licence agreement by one party confers on the other party the right to terminate the licence agreement. What constitutes an essential offence is factual. Therefore, where a party is particularly concerned about a specific risk that might exist in that relationship, it should declare that concern as a case of substantial breach. For example, a licensee could declare that the taker`s timely non-payment of royalties or royalties constitutes the fundamental breach of the agreement. Licensing fees. Licensed rights depend on the type of intellectual property. The table below shows the rights that a licensee may grant with respect to fundamental forms of intellectual property. A licensing agreement is a written contract between two parties, in which one landowner allows another party to use that property under a number of parameters. A licensing agreement or licensing agreement usually involves a licensee and a licensee. The disadvantages of licensing depend on how they are used.
If the licensee licensees the technology in exchange for a royalty on the sale of products containing its technology, the licensee will, to some extent, be dependent on the licensee to make the sale and be honest in declaring the proceeds of the sale. In order to protect itself, the licensee may set certain distribution objectives that the licensee must meet in order to retain the licence and may include specific review rights in the licensing agreement to ensure that the licensee correctly declares the proceeds of the sale. The licensee also relies on the licensee to produce quality products with its technology. To the extent that the public knows that the licensee`s technology is in a product, the licensee will want to ensure that the licensee meets certain quality standards so as not to damage the reputation of the licensee. Unlike copyright, patent law is not entitled to make enhancements or derivative inventions to the original patent holder. A patent gives the holder only the right to exclude others from the patented invention. Therefore, a new and separate patent can be issued to enhance an invention. If the patent holder issues a patent but does not address the issue of improvements and developments, the licensee could reshape the original patent or significantly improve the invention and safeguard a new patent for improvement. In many cases, such enhancement patents are „blocked” by the original patent holder, i.e. the improvement cannot be achieved without a license from the original patent holder, whose technology has been incorporated into the enhanced patent.
At the same time, the improved patent holder`s patent prevents the patent holder from using this enhancement. The possibility of reciprocal patent blocking is one of the reasons why a patent licensing agreement should address the issue of improvements.