Licensor also reserves the right to terminate the License if Licensee does not meet the minimum performance thresholds. The termination provisions should inform the parties of what happens at the time of termination and should concern the return of all proprietary documents to the licensor. If the company is a U.S. company, it wants all disputes to be handled in the U.S. It is very important to specify the choice of law and accept the licensee in the agreement of the U.S. jurisdiction. In May 2018, Nestlé and Starbucks entered into a $7.15 billion coffee license agreement. Nestlé (licensee) has agreed to pay $7.15 billion in cash to Starbucks (the Licensor) for the exclusive rights to sell Starbucks products (single-serving coffee, tea, bean bags, etc.) worldwide through Nestlé`s global distribution network. In addition, Starbucks receives royalties on packaged coffees and teas sold by Nestlé. A license agreement is a written agreement between two parties in which one owner allows another party to use that property under a certain set of parameters. A license agreement or license agreement usually involves a licensor and a licensee. As you prepare to enter the international market, you may want to learn more about the terms and conditions and principles you will encounter in this context. Some resources you should explore are the websites of the U.S.

Department of Commerce, the Small Business Administration, and the Federation of International Trade Associations. To schedule a consultation on your IP license, call our office at 407-660-2964, contact us online or email us at contact@brewerlong.com. The license agreement may also include minimum payments for advertising and promotion. In all cases, Licensor shall retain audit rights to verify the accuracy of Licensee`s accounting for royalties and other financial obligations. Currency and payment methods, such as bank transfers or other methods, must also be specified, and it is important to know what taxes may apply to sales and royalties. Licensing usually involves another company using patents, trademarks, copyrights, designs, and other intellectual products for a percentage of sales or fees. It`s a quick way to generate revenue and grow a business, as there`s no manufacturing or distribution involved. Instead, licensing typically means using an existing company`s pipeline and infrastructure in exchange for a small percentage of revenue.

The licensing agreement gave Starbucks the opportunity to increase brand awareness outside of its North American operations through Nestlé`s distribution channels. For Nestlé, the company had access to Starbucks products and a strong brand image Brand equityIn marketing, brand equity refers to the value of a brand and is determined by the consumer`s perception of the brand. Brand equity can be positive or. If the agreement does not work and the licensor wishes to terminate the contract before the end of the term, clearly defined termination provisions must be included in the contract. As with other agreements, the parties should be able to terminate the license agreement in the event of a material breach. 4. Territory. A strong licensee in one country is not necessarily a strong licensee in another. Caution should be exercised when defining the site and determining whether the site is proprietary or non-exclusive. Provisions prohibiting licensees from sub-licensing or selling to other territories should also be included. For a multinational company, the advantage of licensing is that the company`s products are manufactured and offered for sale in the other country (or countries) where the product or service is licensed.

The multinational does not have to spend its own resources to manufacture, market or distribute the goods. These low costs are, of course, associated with lower potential returns, as revenues are shared between the parties. Exclusive licences are those which create a unique relationship between the licensor and the licensee. With such license agreements, the licensor agrees that the licensee is the only one who can use the intellectual property. These usually cost more for the licensee. Those entering into a licensing agreement should consult a lawyer as there are complexities that are difficult to understand for those who do not have a thorough understanding of intellectual property law. Licensing agreements are often used for the commercialization of technologies. Are you planning to license something you own, but you`re not sure about the different types of licensing agreements? There are several ways to grant an intellectual property (or « IP ») license. To do this, you must first understand the different types of license agreements. Copyright licensing agreements are often used for consumer goods, as are trademark licenses. .