Harvard offers certain materials (usually biological research material) for commercial purposes on a non-exclusive basis. Some materials, such as mice. B, are usually offered on a lump sum basis or with fixed annual payments. others, such as hybridoma cell lines, also include royalty-based payments. Standard contracts for both types of hardware licenses are listed below. Access to Harvard`s innovations should be as easy as possible. Our licensing agreements are fair and appropriate, and OTD`s experienced staff will work with you to help you achieve your business goals. To give you an idea of how these licenses take shape, we are happy to provide you with a number of examples of agreements illustrated here. If you have any questions about these samples, please contact us. You can license the right to manufacture a product from a patent you own or give someone the right to use one of your trade secrets, such as a process developed by your company. Exclusivity and territory.
The licensee is granted the exclusive right to manufacture and sell the product in a specific territory. Licensor agrees not to allow anyone to sell the Product in this territory. This part of the agreement is usually associated with a clause. To benefit from a license agreement, the owner must ensure that his agreement with the potential user of the premises is indeed a license and not a lease. This is not necessarily an easy task. If you simply refer to the Agreement as a “License”, this will not be the case. Whether an agreement is considered a licence rather than a lease depends on the presence or absence of the three essential characteristics of a real estate licence in the contract: (1) a clause that allows the licensor to revoke “at will”; (2) the retention of absolute control on the premises by the licensor; and (3) Licensor shall provide Licensee with all essential services necessary for Licensee`s Authorized Use of the Premises. Describe how the royalties work. What is paid and when? Will the property remain with the original owner for the duration of the license? What happens if the minimum turnover is not reached? Is there an advance on royalties? Among the many types of business relationships encountered in the modern world of transactions is the concept of a license agreement, where one party grants another the right to use a right, trade name, method or product, or other asset for mutual purposes in a business context. The natural or legal person granting the right is referred to as the “Licensor”. The natural or legal person who receives the right is referred to as the “Licensee”.
However, the use of a license agreement instead of a lease agreement does not completely exclude all possibilities of dispute between the owner-licensor and the tenant-licensee. Whether the “self-help” used was peaceful (and therefore legal) or violent (and therefore illegal) or not is always a possible subject of legal dispute. However, if there is a valid license agreement, the owner-licensor is not obliged to readmit the displaced licensee to the premises, even if it is determined that the self-help used was violent and not peaceful. In New York, the licensee`s only remedy is the triple damage that section 853 of the RPAPL provides for forced exclusion. In the meantime, the owner-licensor is free to sublicense the use of the premises to another licensee before a court decision. Understand taxes. Royalties paid by the licensee are counted as operating expenses. Royalties must be counted as income for the licensor and reported on Form 1099-MISC. In addition to detailing all parties involved, license agreements detail how licensed parties are allowed to use the properties, including the following settings: Payments.
As mentioned above, the licensee usually pays royalties to the licensor. There may be an initial advance on royalties, and then the current royalties are based on sales. Royalties can be paid based on a percentage of sales or a lump sum. Think about which method works best for both parties (and don`t forget about inflation and exchange rates). .