Example Of License Agreement
And individuals and companies that need some intellectual property to grow their businesses or make a living may not have access to it. The licensing agreement allowed Starbucks to increase brand awareness outside of its North American operations through Nestlé`s distribution channels. For Nestlé, the company had access to Starbucks products and a strong brand imageBrand EquityIn marketing, brand value refers to the value of a brand and is determined by the consumer`s perception of the brand. Brand value can be positive or positive. An example of a licensing agreement in the restaurant sector would be for a McDonald`s franchisee to have entered into a licensing agreement with McDonald`s Corporation allowing them to use the company`s branded and marketing materials. And toy makers regularly sign licensing agreements with movie studios that give them the legal power to produce action characters based on popular similarities of movie characters. You understand taxes. The royalties paid by the licensee are taken into account as business expenses. Royalties must be recorded as revenue to the licensor and reported on Form 1099-MISC.
License. The license itself is described, with details on the time limits (one year?), the scope (United States, worldwide?) of the license, and the assertion of exclusivity. Details on what the licensee can do with the license (produce, sell, sublicense, distribute and export products with it, etc.). Licensing agreements are often used for the commercialization of technologies. Trademark licenses include the right to use the trademark of certain items and in a certain way. Payment. Details of payment to the licensor, including whether there is a base or royalties, and percentages. How and when payments are made. How sales are verified. Payments if there is a sub-licensor. The licensor`s right to an annual review and periodic monitoring of sales. The table below shows how each of the 42 agreements is categorized with respect to the sector, the type of contract, intangible assets and the type of remuneration.
Exclusivity and territory. The licensee shall have the exclusive right to manufacture and sell the product in a given territory….