License agreements are created to grant either an exclusive or non-exclusive right of a patent or trademark (intellectual property) to a party (Licensee) desiring these rights. In exchange for this right, the license agreement provides for the patent owner or trademark owner (Licensor) to obtain royalties for the use of this intellectual property. Stanzione & Associates, PLLC provides our clients with services to help persuade potential licensees to engage in a licensing agreement. After a potential licensee has decided to enter intoa licensing agreement, we negotiate an agreement that is satisfactory to both the licensor and the licensee.
Benefits to the Licensor include:
Patents: Gross sales of the licensor’s patented invention to other businesses which have the capacity to make and/or sell it:
Trademarks: Utilizing the licensee’s distribution network to quickly enter into new geographical regions and foreign markets; making it easier to introduce the licensor’s product into other regions or countries; and eliminating the need for the licensor to invest or come up with new capital since the licensee will be the one to invest for the trademarks. Thus the licensor will be paid without giving any products to the licensee. And lastly, the licensor will be an expert and will gain popularity because of the licensee’s efforts in getting the name known to other regions and countries.