A licensing agreement is a commercial agreement between two parties. The licensee (the licensee) owns the licensed assets and the buyer pays the right to use the license. The licensee pays royalties to the owner in exchange for the right to sell the product or use the technology. Restrictions. What the licensee can`t do with the license. Perhaps the taker cannot sell it at a certain price or sell it under license or use it in some way or certain types of products. Patent holders, designs, copyrights and other intellectual property rights who live off inventions often choose to grant these rights to other than means of exploiting their inventions. Often, the owner of an invention chooses to enter into a licensing agreement with another party for the production of licenses allowing that part to produce its invention. Another method of circumventing the need for a license is for a manufacturer to slightly modify the design or operation of an existing product before replicating it.  The manufacturer could then argue that the product obtained is not an unlicensed copy, but a new product that is not licensed.  At the end of the 20th century, developing countries began to record a significant percentage of licensed production.  Governments in developing countries have often sought to promote rapid industrialization, reduce dependence on foreign imports and combat high unemployment by creating and maintaining local jobs.
 However, Aboriginal businesses were often too small and their research capacity was too limited to achieve these objectives alone, forcing them to enter into licensing agreements.  The production of non-domestic licensed products has created jobs and strengthened the industry while reducing dependence on imports.  It has also avoided the risks associated with the development of new products without adequate research infrastructure by taking advantage of the benefits of consumer products already proven in foreign markets.  Several developing countries, such as Pakistan and Singapore, which have built important segments of their industry on licensed production, have themselves become licensees for less developed countries.  Unlicensed production is the use of unlicensed foreign manufacturing techniques obtained by industrial espionage or reverse engineering.  Products that are in high demand on the international market can be reproduced on the basis of an identical or similar design and be marked in such a way as not to be distinguished from the original.  When certain items are copied and reproduced without a license, they are sometimes copied in the same way by third parties.  Responsible manufacturers may also grant legally registered sub-licences for their unlicensed products that benefit the owner of the intellectual property.  The quality of un conceded goods is very different; The United Nations Office on Drugs and Crime has found that, although sub-licensing companies often offer quality control measures, licensees are sometimes encouraged to take legal action or risk action, and that the resulting damage to their own profits is producers who operate unlicensed production. , are not subject to such obligations.  Subsidiary license. The licensee may be granted the right to authorize someone to manufacture or sell their products.
This depends on the specific terms of the license agreement. Licensing can be done by one company, but if this is not possible, an alternative is to consider a multi-step approach to your license with several component parts made by different manufacturers, final assembly by another and possibly distribution by another. This can divide the risk if the size of the project is deemed too large by a licensee. object. A detailed description of the product or service or trade secret that is licensed. This part may contain a patent, copyright or trademark number. Brands