How do licensing agreements work?
Any time you want to use someone else’s property, you need to ask for permission — and often pay a fee as well. That’s essentially what a license agreement is, no matter the scale of the agreement or product. For example, a music-streaming platform needs to license an artist’s new album if they want to make it available on their platform, and a clothing company needs permission to place a sports team logo on merchandise to make officially licensed products.
Benefits of license contracts.
License contracts are incredibly valuable to companies who own the rights to a product but don’t have the ability to manufacture it on their own. They also allow the licensor to control how and in what context their work appears.
For example, if a small business creates a proprietary technology and secures intellectual property rights for their work, they profit from selling licensing rights to their product, while the company buying the rights saves time and money by not having to create their own product from scratch.
Not only is asking for permission via a license contract the right thing to do, it will also protect both the licensee and licensor should any legal issues arise.
What to include in your license contract.
What is being licensed
Both parties need to know how to handle a dispute, should any arise, before you enter an agreement. The contract should also outline what breaches of contract could void the entire agreement. Arbitration, mediation, or court intervention are the most common routes of dispute resolution.
Create license contracts with Adobe.
Sail through contract creation, negotiation, and signing with Acrobat Sign. Digital documents mean you can skip the time and costs of mailing physical paperwork back and forth. Collaborators can comment and edit in real time, and when you’re ready to send your agreement for signature, you can do it in a single click. Signers can sign from any device, and you’ll be notified when the agreement is signed.