Making your intellectual property work for you is a smart business decision. If you want to monetise your intellectual property by licensing it to another party, a Licence Agreement is a great place to start.
IP licensing gives the licensee the right to use, but not own, the IP.
There are three main types of licences:
An exclusive licence
Most common form of commercialisation
Gives licensee exclusive use of commercialising your IP (even excludes you)
Typically higher licence fees due to this exclusivity
Can be very profitable form of licensing
Licensors can include specific restrictions on the licensee’s use in order to be able to retain some control & rights over their own IP as well as to allow other licensees use of their IP
There are benefits to both the licensor and licensee with this type of IP licence
A sole licence
Combination of both exclusive & non-exclusive licence
Allows greater control over your IP
Use it in conjunction with licensee
A non-exclusive licence
A non-exclusive licence is used where the licensor allows more than one licensee to operate but wants the option to commercialise their own IP in-house.
An exclusive licence is the most common form of commercialisation.
If you are thinking of licensing your IP, be aware of licence conditions and the licence royalties. IP Australia has more information available at their website here.
One of the contract templates we have available in our online store is the Licence Agreement template for creatives. Check it out here.
If you need assistance with licensing your IP or drafting your licensing agreements, contact our friendly team on firstname.lastname@example.org