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License Agreements

Licensing agreements allow businesses to grant another person or entity the right to use an asset in exchange for a payment or series of payments. Assets that are frequently included in licensing agreements include intellectual property such as a specific product or method of production. 

A typical licensing agreement contains an explanation of the rights and duties of the parties to the agreement, as well as payment exchanged for the use of the asset. The amount of the asset to be licensed is also an issue for the parties to determine before incorporating the terms into a written licensing agreement. For example, a business may license an asset exclusively to a party (an “exclusive license”) or, a business may license part of an asset to one or more persons (a “non-exclusive” or “limited license”).

Licensing agreements are extremely useful to business owners who are interested in developing new or additional revenue streams. It is important to know your rights and consider how best to utilize your existing asset in a license agreement. If you would like to learn more about how a licensing agreement may be right for your business, call our experienced professionals at Pasha Law PC.

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