The patent holder might think that the creation of the licensing agreement as a non-exclusive licence, so that the patent holder can extend several licences, could be the means of mitigating the limit by a defaulted licence. But that may not be the case. If the patent holder has found another licensee but wants an exclusive license, the agreement cannot be entered into because the patent holder cannot opt out of the non-exclusive licence and cannot renew an exclusive license. In general, dismissal for reasons, including partial termination, is a strong measure. As long as the parties have a mutual economic interest in the agreement, there will be a good reason to work things out without resigning or even threatening to denounce it. All right! We`re back for the third round on licensing. Other issues listed in the agreement may also be considered as grounds for “immediate” termination. A typical example would be that the manufacturer “assigns” the licence to another producer or producer without your consent. The last thing you want is for your artwork to be handed over to a complete stranger. If the contract is automatically terminated, if the licensee terminates the contract without your consent, you can license the plant elsewhere and prevent both the licensee and the agent from manufacturing and selling licensed products. As a good story, your license agreement will have a beginning, a center and an end.
How this could end is important enough to play a leading role in most agreements. To give you an example, if the inventor patents a feature used on a desktop computer, the goal would be to back up a patent for that feature, as it would be integrated into a desktop computer. However, a good patent strategy would be to extend this patent protection to laptops, smartphones, etc. by creating a patent portfolio. Since the inventor is not in these other niches, a win-win situation possible, license and forfeit royalties from several takers of different niches, while continuing to sell widgets in the inventor`s own niche. A good starting point is the termination or duration of the licenses. This section contains the conditions under which the parties can terminate the contract. If you`re thinking the worst, it`s a good idea to check a license agreement. If the term of the licence is five years, the patent holder must verify whether it is acceptable to have the unit as a licensee for a period of five years.
Suppose the licensee exaggerated his skills, but he gave only meagre results during those five years. Would that be acceptable? Would it be acceptable for the patent holder to be bound to the licensing agreement for the full five years? Once you have obtained a patent on an invention and you earn money, another company may want to use the patented technology in its product or service. In order to give a company the right to use the patented technology, the patent holder and the company enter into a contract on the right to use the patent holder`s intellectual property.