Business Counseling

Licensing Matters

Although there are many different types of licenses, most licenses relate to the granting by one party (“Licensor”) of its rights in a trademark or patent to a third party (“Licensee”) for the Licensee to use those rights in a certain product category for sales in a certain territory within certain channels of distribution in exchange for paying the Licensor a royalty.

In representing Licensors in such matters, it is important to make sure that the Licensor, in granting rights to the Licensee, is granting rights that are consistent (and do not violate) previously granted rights. In addition, the Licensor wants to make sure that the Licensee operates its business (and the production of the product) in such a way as to enhance the Licensor's interests rather than diminish them. Finally, of course, the Licensor wants to make sure that he/she receives the economic consideration (royalties) to which they are entitled.

From the Licensee's standpoint, the Licensee wants to make sure that the rights granted coincide with the needs of the Licensee. That part, in and of itself, is not too difficult. Where the difficulty sometimes lies is in making sure that the approval processes required by the Licensor are reasonably and actually meet the Licensee's method of operation.

For additional information concerning licensing transactions, please contact Ross Schwartz.