Intellectual property is non-tangible property that is created by someone. Some examples of intellectual property include processes, art, music, design, literature, music, and inventions. Just like tangible property, intellectual property has value. Business attorneys work with intellectual property owners to ensure that they have licensing agreements in place to protect their product. Before drafting the licensing agreements you need to determine what type of property you have. The three types of intellectual property are:
- Copyrights
- Trademarks
- Patents
A copyright is used to give the author the exclusive rights to their material. A trademark is used to register a sign, design, or symbol that represents a specific service or product. Lastly, a patent is used to register an invention before the idea goes public.
Licensing agreements do not have to be complex contracts, they can be simple but they also need to be enforceable. Included in the licensing agreement should be the scope in which the product can be used, and how the revenue will be handled that the product produces. Attorneys may also include some of the following agreement topics in the licensing agreements:
- Rights to modify and combine with other products, if any;
- Indemnity for infringement;
- Prohibited uses;
- Warranties;
- Transfer and sublicense rights;
- Rights to source code;
- Acceptance, testing and training procedures;
- Limitations on the licensor’s liability;
- Support services;
- Term or Length of the agreement length;
- Nondisclosure of confidential information; and
- Enforcement of remedies Contract termination.
