What Does Licensing Agreement Entail

In a typical license agreement, the licensor grants the licensee the right to manufacture and sell goods, to apply a brand name or trademark, or to use a patented technology of the licensor. For example, Licensor may include terms in the Agreement that require Licensee to provide prototypes of the Product, packaging models, and even occasional samples throughout the term of the Agreement. Of course, the best form of quality control is usually obtained before the fact – by carefully checking the reputation of the licensee. Another common quality regulation in licensing agreements concerns the method of disposal of unsold goods. If the items that remain in stock are sold as cheap imitations, it can damage the licensor`s reputation in the market. .

Comments are closed.