Do your due diligence before the agreement. Both parties should carefully consider the other party. Check business credits and continuous management. Ask for a degree. Visit the offices and production sites of the other company. Try to do it. That is all that both sides want to add. Some license agreements contain confidentiality agreements such as .B. This clause would prevent the taker from disclosing proprietary information or processes. A well-written licensing agreement is important for both licensees and licensees. If your business needs help at any point in the process, our team of contract lawyers can help. Whether it`s developing the whole agreement or reading your own model, we have the know-how to make sure it`s done right. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials.
And toy manufacturers regularly sign licensing agreements with movie studios and give them the legal authority to produce action characters based on popular similarities of movie characters. While it is very difficult to get a third-party license to produce and sell your product, this can also happen. And if you prepare properly and get ready for the challenge, you have a shot to have the dream of landing this product license deal, and collecting royalties while the licensee does all the work and takes all the risk. Most licensing agreements also deal with the issue of quality. For example, the licensee may enter into the contract conditions that require the purchaser to provide prototypes of the product, mockups of the packaging and even occasional samples for the duration of the contract. Of course, the best form of quality control is usually achieved before the fact – by carefully checking the reputation of the licensee. Another common quality provision in licensing agreements is the method of disposing of unsold products. If stock items are sold as cheap knockoffs, this can damage the licensee`s reputation in the market.
We know one or two things about marketing and licensing products, both of which have followed many times over the years.