Licensing Checklist
   
   
     
 
PAGE HARGRAVE Attorneys have experience of dealing with a wide range of technology licences and other intellectual property licence agreements, including design, copyright and trade mark licences.

If you need advice on licence terms in manufacturing, joint venture, distribution, collaborative R&D, franchise or similar forms of agreement, we should be able to help. We can also advise on the possible relevance of UK and European Competition law to your intellectual property licence agreements and the issues involved in government and EU funded Research and Technological Development (RTD) contracts.

EU 5th Framework Programme
- Model Contracts
- Ownership & Access rights to Intellectual Property

- RTD IP Issues from original IPR Helpdesk - see note above
- Consortium Agreements from original IPR Helpdesk - see note above

For general guidance to assist managerial, technical and commercial people who may be involved in negotiating intellectual property licences, the following checklist may be helpful:

Points to deal with in establishing a Heads of Agreement for Patent and Know-How Licensing

Essential   Optional   Secondary   For Advisors

Essential

1. The parties to the agreement.

2. The duration of the agreement. How it is to terminate.

3. The territory covered.

4. The intellectual property rights and/or confidential information being licensed, and the extent of the permitted use.

5. The extent to which the agreement is exclusive.

6. The extent to which sub-licences are permitted.

7. Compensation to the licensor (royalty rates, lump sums, "options" or up-front payments, minimum royalties, audited accounts, etc). Effect of rejection of applications for intellectual property rights or revocation or unenforceability of those rights.

8. The licensor's right of inspection and quality control.

Top of Checklist   Essential   Optional   Secondary   For Advisors

Optional (depending on the case in question)

1. The extent to which the licensor or licensee must share know-how or other confidential information, and how this is to be compensated.

2. Confidentiality of any shared know-how.

3. The extent to which the licensor's trade marks must be used. The extent to which the licensor can approve packaging and promotional material.

Top of Checklist   Essential   Optional   Secondary   For Advisors

Secondary (can be left to resolve at the draft licence stage)

1. Who pays for obtaining and maintaining patents and other intellectual property rights? Who decides which countries are required?

2. Who pays for action against infringers? Who decides when to take action?

3. The extent to which the licensor's own improvements must be made available to the licensee.

4. The extent to which the licensee's own improvements must be made available to the licensor. Who owns intellectual property rights to them?

5. Liability to third parties (e.g. breach of product safety laws, intellectual property rights).

6. Liability for taxation.

Top of Checklist   Essential   Optional   Secondary   For Advisors

For discussion with advisors

1. The extent to which companies should be set up as a vehicle for the licence, e.g. to limit personal liability or liability to income tax.

2. The extent to which insurance, e.g. against third party claims or infringement or unenforceability of the patents and other intellectual property rights, may be required.

3. The extent to which valid and enforceable intellectual property rights are likely to result. For the licensor: the likely costs and delays involved.

Top of Checklist   Essential   Optional   Secondary   For Advisors

Please contact us directly for specific advice if required.


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