What issues are covered in a license agreement?
The issues covered in a license agreement include: – What is being licensed; – Exclusivity or non-exclusivity of the license; – Coverage of all uses of the invention or restrictions to specific applications and/or uses; – Coverage of all regions or restriction to specific territory (e.g. USA); – Consideration (up-front payments, royalties, benchmark payments, payment of patent costs, equity); – Inclusion of the right to sub-license to another party; – Ownership of improvements (this could affect any future work you may do in the field, and your rights to further development); – Performance benchmarks/criteria (investment requirements, time to market, sales, etc.); – Governing law; – Indemnification; – Term of the license; – Limitation of liability and – Termination criteria.
