Technology Licensing

For many companies, intellectual property, such as software code, patents or copyrightable material, is by far the most valuable asset the company owns. Ensuring that your license agreements are thorough and appropriate consequently becomes exceptionally important. Issues you should consider in your license agreements include:

Scope of License – How many people are entitled to use the intellectual property; how many computers may run the software, etc.

Use Restrictions – to what extent can the licensee correct, enhance or otherwise modify or create derivatives of the software

Warranty – has the licensor guaranteed that the intellectual property will satisfy certain specifications

Delivery and Acceptance – How will the intellectual property be delivered and how will the licensee accept the intellectual property

Maintenance – what actions must the licensor take during the term of the license to maintain the intellectual property

Fees – what are the fees and how and when are they paid

Term and Termination – how long will the license last, and what rights do each side have to terminate the license

Audit Procedures – can the licensor audit the licensee to ensure compliance by the licensee with the terms of the license