Most licensing agreements also address quality. For example, the licensor may include in the contract conditions obliging the licensee to provide product prototypes, packaging models and even occasional samples for the duration of the contract. Of course, the best form of quality control is usually carried out before the fact – carefully checking the reputation of the licensee. Another common quality regime in licensing agreements concerns the method of disposal of unsold goods. If the remaining items in stock are sold as cheap knockoffs, this can damage the licensor`s reputation in the market. The licensing agreement allowed Starbucks to increase brand awareness outside of its North American operations through Nestlé`s distribution channels. For example, a McDonald`s franchise could contain licenses to use the McDonald`s logo on products and packaging, as well as another license to manufacture its patented processes or components. A license agreement is a favorable agreement between two parties, the licensor and the licensee. In a typical license agreement, the licensor grants the licensee the right to manufacture and sell goods, to enforce a trademark or mark, or to use a patented technology of the licensor.
In return, the licensee generally submits to a number of conditions relating to the use of the licensor`s property and undertakes to make payments called royalties. Another common element of licensing agreements includes the party that retains control of copyrights, patents, or trademarks. Many contracts also contain a provision relating to territorial rights or that manages distribution in different parts of the country or the world. In addition to the various clauses inserted in the donor protection agreements, some licensees may add their own requirements. They may, for example, insist on the guarantee that the licensor holds the rights to the immovable property or they may insert a clause prohibiting the licensor from competing directly with the licensed property in certain markets. A license for Harvard`s own patent rights is subject to conditions similar to those set forth in the form agreements in the following links. Some terms can be changed to address unique aspects of each situation.