A licence simply means giving another person the right to use an asset that is owned for specific purposes and, as a general rule, a specific payment or series of payments called a “licence fee.” As a general rule, a party granted the right to sell or use a business asset you own, such as intellectual property, a product or methodology. Some examples are a license for the development and promotion of a patented product and for sale in a given region; A license to use its own product as part of a mix of products sold; A license to use a trade name or logo for the sale of a product in a given territorial scheme; license to publish a copyrighted, written, etc. work. Those who enter into a licensing agreement should consult a lawyer, as there are difficult complexities for those who do not fully understand intellectual property law. There are many other ways to pool efforts to promote and sell a product or service ranging from joint participation of a single entity to distribution and distribution agreements to joint ventures (partnerships of two or more companies). In most cases, a license is the preferred method by an individual or entity that simply wants a totally passive role to obtain royalties without even being involved in day-to-day or strategic marketing decisions. One customer said, “I just want to sit down and cash my royalty cheques.” The licensee wishes to use the name and logo of KPMG and other service brands owned by KPMG International in operating areas and/or licensed; Licensing a product or service can be a great way to generate good cash flow if the document is established correctly with a clear understanding of the parties` objectives and obligations. For most years, a license is limited to the extent that the licensee is free to develop certain markets or cooperate with more than one taker. It is important not only to keep good legal advice in mind, but also to get good tax advice and knowledge of the place before the relationship is used. If possible, it may be possible for an inventor or developer of a product or service to minimize their participation in marketing and provision, while earning a good income. What does a limited or unlimited license mean? How is z.B a limited license for using a particular program or source code other than an unlimited license? Examples of licenses are available in many different sectors. An example of a licensing agreement is an agreement between software copyright holders to a company, which allows it to use computer software for their day-to-day activities.
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.