Nuts, bolts of license agreementsOver the past six weeks, I've been working with Joan on bringing to Rockford her favorite dessert, which she found on a visit with her son in San Antonio, Texas.
She tried to import the product from the San Antonio manufacturer; it's a frozen dessert, so that became rather expensive. In addition, cold storage was required when the product was delivered while waiting for distribution.
Our next move was to examine the likelihood of developing a license agreement for her to have it manufactured in this area and sold at grocery stores in northern Illinois and southern Wisconsin. That process is ongoing, but it's time to review what's required in seeking a license agreement.
A license agreement gives you a right to use someone else's asset or right, or gives someone else the right to use some asset or right of yours. The precise terms of the right are spelled out in a license agreement.
The party that gives someone use of a right or asset or right is known as the licensor. The party that receives the use of that right or asset is known as the licensee.
A common example of a license agreement is one used in connection with the use of software. When you buy a software product, the person is only buying the right to use the software in limited ways. These limits are set forth in the license agreement that comes with the software. Some other typical license agreements: trade name, patent, software and copyright.
If you are interested in obtaining a license or are needing to provide to someone else, consider the following key points that a license agreement should address:
Bill Bryan is a counselor with the Service Corps of Retired Executives. SCORE offers counseling, workshops and seminars on small business operations. You can reach Bryan through SCORE, 515 N Court St. 815-962-0122, for information and appointments.
SCORE is a registered trademark of the Service Corp of Retired Executives
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