California Agreement between Inventor and Manufacturer Granting License to Manufacture Products from Invention

• Category: Contracts - Inventions
• State: Multi-State
• Control #: US-1036BG
• Format: Word; Rich Text

Description

An invention is a new composition, device, or process. Invention can also be defined to include creative endeavors that extend beyond original, substantial improvements. An invention is also a new, useful, and nonobvious improvement of a process, machine, or product. Any invention which is new, useful, and nonobvious improvement of process can be patented. Inventions that involve processes, machines, manufactures, and compositions of matter, and any improvement thereof, are patentable. A license is a contractual right that gives someone permission to do a certain activity or to use certain property owned by someone else. Licensing agreement is an agreement between two enterprises allowing one to sell the other's property such as products or services and to use their name, sales literature, trademarks, copyrights, etc. in a limited manner. Besides license agreement terms, federal laws provide stiff civil and criminal penalties for pirating and other unauthorized use of other's property. A patent is a grant of a property right by the Government to an inventor. The United States Constitution gives Congress the right to provide for patent protection in legislation in order to encourage useful inventions. The patent itself provides a detailed description of the invention, and how it is used or how to make it. • how many inventions it has evaluated; • how many of those inventions got positive or negative evaluations (legitimate companies will have a fairly low acceptance rate, usually under 5%); • its total number of customers; • how many of those customers received a net financial profit from the promoter's services (that is, the number of clients who made more money from their invention than they paid to the company); and • how many of those customers have licensed their inventions due to the promoter's services (if the success rate is too low, between 2 and 5%, the company's services may not be worth your out-of-pocket expenses).

Title: California Agreement between Inventor and Manufacturer Granting License to Manufacture Products from Invention — Types, Benefits, and Key Clauses Description: In the realm of intellectual property rights, a California Agreement between Inventor and Manufacturer Granting License to Manufacture Products from Invention holds significant importance. This legally binding agreement serves as the foundation for licensing the rights to manufacture and distribute products that stem from an inventor's creation. In California, various types of agreements exist to cater to the specific needs of inventors and manufacturers. Let's delve into the key elements, benefits, and different types of these agreements. 1. Exclusive License Agreement: An Exclusive License Agreement grants the manufacturer exclusive rights to produce and distribute products based on the invention. In this arrangement, the inventor relinquishes all rights to other manufacturers for a specified duration. This type ensures that the manufacturer has a competitive advantage in the market, increased profitability, and potential for product improvement. 2. Non-Exclusive License Agreement: The Non-Exclusive License Agreement enables multiple manufacturers to produce and distribute products based on the invention. This type allows the inventor to license their invention to more than one manufacturer, expanding market reach and potentially generating more revenue. Non-exclusive agreements are typically more flexible and suitable for inventors looking to maximize distribution avenues. 3. Sole License Agreement: A Sole License Agreement is a middle ground between the exclusive and non-exclusive agreements. It grants a specific manufacturer the sole right to produce and distribute products from the invention, while the inventor retains the right to produce and distribute the product as well. This agreement offers a controlled competitive environment and allows the inventor to maintain involvement in the manufacturing process. Key Clauses in a California Agreement between Inventor and Manufacturer: a) Grant Clause: The Grant Clause specifies the rights and scope of the license granted to the manufacturer. It outlines whether the license is exclusive, non-exclusive, or sole, ensuring both parties understand the authorized manufacturing rights. b) Royalty Clause: This clause establishes the payment terms, including the royalty fees or percentage of revenue to be paid by the manufacturer to the inventor. It lays out the payment schedule, reporting obligations, and potential adjustments based on sales volumes or other performance metrics. c) Term and Termination Clause: The Term and Termination Clause defines the duration of the agreement and the circumstances under which it may be terminated. It details the notice period required by either party and any provisions for early termination, providing clarity on the contract's timeframes. d) Intellectual Property Clause: This clause addresses the ownership of intellectual property rights in the invention, including copyrights, patents, trademarks, or trade secrets. It clarifies how these rights will be protected and potentially extended during the agreement's term. e) Confidentiality and Non-Disclosure Clause: To safeguard the invention's sensitive information, this clause ensures that both parties commit to keeping proprietary details confidential and not disclosing them to any third parties without proper consent. f) Dispute Resolution and Governing Law Clause: This clause outlines the procedures for resolving disputes that may arise during the agreement's term. It also specifies which state's laws, particularly California laws, shall govern the interpretation, enforcement, and validity of the agreement. A California Agreement between Inventor and Manufacturer Granting License to Manufacture Products from Invention serves as a valuable tool for inventors and manufacturers alike, facilitating mutually beneficial collaborations. Choose the type of agreement that aligns with your business goals and leverage the defined clauses to protect your rights and ensure a successful partnership.