A Deal Maker,
Not A Deal Breaker
  1. Home
  2.  » 
  3. Uncategorized
  4.  » Types of licenses for intellectual property

Types of licenses for intellectual property

On Behalf of | Apr 13, 2021 | Uncategorized |

There are many different products that people use in California. These products have many different functions and help people with many different aspects of their lives. Before these products are produced and sold to people though, they start as someone’s idea. That idea then grows into a design and eventually the product is made. When people develop these ideas and designs, in order to ensure that they are able to earn money from the invention they should obtain patents and other forms of intellectual property.

Obtaining the patent is sometimes the first step in the process of actually making money from the invention. People need to be able to obtain the materials they will need and the resources to be able to make the product in high enough quantities to make a profit. This is not easy to do. However, people also have the option of earning money by licensing the right to produce the product to another company who can adequately produce it. A licensing agreement allows others to produce the product in exchange for royalties or a portion of the profits earned from the product.

Exclusive vs. non-exclusive licenses

There are two main types of license. One is an exclusive license. This provides the licensee exclusive use of the invention. They would be the only ones allowed to produce the product and earn a profit from it. There could be some restrictions like only allowing them to produce the product in a certain region or other restrictions.

The other type of license is a non-exclusive license. This means that the owner of the intellectual property will be allowing multiple different companies to use and produce the product at the same time.

There are many reasons why one type of license will be better for people in California than the other. Knowing which one is best is important, but it is just as important to ensure they have a well-drafted licensing agreement. The agreement will state the terms and a poorly drafted one could cost people money that they deserve for their invention. Experienced attorneys understand the importance of these agreements and may be able to guide one through the process.