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An agreement granting a third party a license to use trademarks, service marks, copyrights, or other intellectual property (IP) rights in a character, film, television program, video game, or other artistic property for the creation of consumer products for distribution, marketing, and sale.
For example, a book publisher may enter a licensing agreement with another party to use a piece of artwork on the hardcover editions of a book, but not on the covers of subsequent paperback issuances. The publisher may also be restricted from using the artistic image in certain advertising campaigns.
"At Coca-Cola we view licensing as a powerful marketing tool," says Dwyer. "It provides us with an opportunity to support, enhance and ultimately extend our brand messages through relevant product categories.
Example of a Licensing Agreement Nestle (the licensee) agreed to pay $7.15 billion in cash to Starbucks (the licensor) for exclusive rights to sell Starbucks' products (single-serve coffee, teas, bagged beans, etc.) around the world through Nestle's global distribution network.
These are some common types of licensing agreements: Trademark license - outlines how you may use a trademark Patent license - outlines your right to sell, use, make distribute and export a product that is patented Copyright license - outlines your right to reproduce and sell copyrighted assets.
Begin your license agreement by defining who all parties are. From there, add information about license grants, charges, licensee's obligations, intellectual property rights, limitation of liability, confidentiality, governing law, waivers, etc. End the template with an agreement form to sign.