When you obtain a patent, trademark, or copyright to protect your intellectual property (IP), you obtain the sole rights to use and benefit from your invention, brand, or original work. However, one of the main ways you can benefit from these protections is to give others permission to use your IP by issuing them a license. In fact, many businesses depend upon licensing for their operations and licensing agreement can be extremely profitable for IP owners.
Licensing transactions can be complicated and can involve numerous laws with which the rights transfers must comply. For this reason, it is imperative to have an experienced intellectual property and business attorney overseeing your transaction and agreement.
The importance of the license agreement
A license agreement is a legally binding contract, so you want to ensure all of the provisions in the agreement are favorable to you. Like any other type of business contract, a license agreement should be carefully drafted, negotiated, and reviewed by a lawyer who understands the legal language and can identify any potentially harmful terms or omissions.
Overseeing use of the property
Even though you issue the right to use your property, you still want to protect the integrity of the invention, work, or brand. For this reason, you will want to ensure you have the ability to regulate how the IP is used, marketed, or advertised. Careful regulation can help uphold the quality of the product and can avoid a licensee jeopardizing any goodwill you have earned for your intellectual property. Preserving the nature and reputation of your IP can help with future transactions, so you always want to skillfully negotiate the right to regulate certain actions by the licensee when necessary.
IP licensing is often mutually beneficial as it allows an IP owner to earn royalties when they may not otherwise have been able to navigate a market for their product on their own, while a company can use an established idea or brand to improve business. However, as with any contract, the opportunity for legal disputes does exist. If either party breaches the licensing agreement, it may result in litigation and you always want the representation of an experienced lawyer in such cases.
To discuss any intellectual property matters, call a California business attorney today
Intellectual property can be a company’s most valuable asset and you should always protect it as such. Licensing your IP can be financially successful, however, you want to ensure you maintain the goodwill of your property and that no party oversteps the bounds of a license. At Kalia Law, P.C. In California, we understand the complex IP laws that are applicable to licensing and can protect your interests. Call our office at 650-701-7617 to discuss how we can help you today.