A patent license is a legal agreement where you, the patent owner, allow someone else to use your invention. They can make, sell, or use it, and you still own the patent.
Key Parts of a Patent License:
- Parties: Clearly state who’s giving the license (licensor) and who’s receiving it (licensee).
- Scope: Define the exact rights being granted. This could be to make, distribute, or sell.
- Territory: Outline where the licensee can use the patent.
- Duration: Specify how long the license lasts. It might be a set number of years or the patent’s remaining life.
- Payment Terms: This can be a one-time fee, ongoing royalties based on sales, or both.
- Performance Requirements: Set any sales targets or other goals the licensee needs to hit.
- Infringement Handling: Decide who takes action if someone else violates the patent.
- Ending the Agreement: State reasons either of you might end the license.
- Quality Standards: Set any quality standards to make sure your invention remains top-notch.
- Reporting: Describe how the licensee will tell you about sales, and how you can check their figures.
Key Points for Inventors to Remember:
- Check Licensee’s Background: Make sure they have the skills and resources needed.
- Control Sub-licensing: Ensure the licensee can’t give rights to someone else without your okay.
- Ownership of Improvements: Decide who gets rights to any tweaks or changes to the invention.
A clear and solid patent license can bring inventors steady income and success.
Every detail counts!
Contact us to draft your next patent licensing agreement.