Licensing

Holders of Intellectual Property (IP) rights have the option to licence these rights for use by other parties. All forms of IP can be licensed, this covers patents, trademarks, design registrations and copyrights.

Licensing does not constitute a transfer of ownership and usually sets out terms under which this IP may be used by the licensees and whether a payment is expected. These payments, also known as royalties, may be recurring or once off and strict timelines will apply. 

Licences can be separated by territory, time, or industry type.   

Why Licence Your IP?

If you wish to protect and commercialise your IP but do not have the primary means to invest in the manufacturing, production, marketing and distribution, you can opt to licence your IP. 

Licensing allows you to still benefit financially from your idea or invention without having to do any of the additional work aside from securing the necessary IP rights.  You can also have a scenario where you can commercialise your IP in one territory or industry, while others are licensed for commercialising it in other territories or industries. 

It may also support you to reach markets and gain a reputation that you would otherwise have struggled to achieve. 

As you can limit the rights and timelines associated with your IP in a licence agreement, this allows you to control your IP and terminate this at a later date in accordance with the licensing agreement. This allows you to continue to benefit from the prior exposure or your IP in any future dealings. 

Examples Of Licensing In IP

Licensing of IP is something we are exposed to frequently without even realising it. As an example, McDonald’s working with Disney for a new movie release and including Disney figurines in Happy Meals is a form of IP licensing. 

Likewise, your favourite clothing store releasing a limited range of sweaters with famous performers' faces on them would also indicate licensing of IP. 

Licensing of IP must be conducted properly if you are to protect your rights and to ensure you are not accused of infringing on someone else's. For this reason, engaging an IP Lawyer’s help is highly recommended.

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