Licensing Agreement Definition Wikipedia

The term narrow wrap license commonly refers to any software licensing agreement that is included in software and is not accessible to the customer until after purchase. As a general rule, the license agreement is printed on paper contained in the boxed software. It can also be displayed on the screen during the user`s installation, in which case the license is sometimes called the Click-Wrap license. The client`s inability to verify the license agreement prior to the purchase of the software has led to the absence of legal difficulties in some cases. Licensees believe that the license offers them revenue growth. This growth in turnover can take the form of growth in the existing market or the possibility of opening a new market. To do so, licensees expect the brand to have a significant brand preference, open doors and ultimately help them achieve or exceed their business objectives. The licensing agreement obliges the purchaser to achieve certain sales objectives and royalties; The licensee`s objective is therefore to quickly achieve his business objectives and thus meet his contractual obligations. Royalties are the funds that the licensee pays to a licensee for the right to use the authorized property. It is calculated by multiplying the licence rate by net sales. [4] For me, this little revision makes the paragraph much easier to understand. (I assume “Forms” refers to “[forms] of software licensing agreements.” If this is not the case, it is necessary to explain what the “forms” refer to!) Duration: Many licenses are valid for a specified period of time. This protects the licensee if the value of the license increases or if market conditions change.

In addition, applicability is maintained by ensuring that no license goes beyond the duration of the contract. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials. And toy manufacturers regularly sign licensing agreements with movie studios and give them the legal authority to produce action characters based on popular similarities of movie characters. End-user licensing agreements are usually lengthy and written in very specific legal language, making it more difficult for the average user to give informed consent. [3] When the company designs the end-user licensing agreement in such a way as to deliberately deter users from reading it and is difficult to understand, many users may not give their informed consent. Again, a succinct definition of the licence is “a promise from the licensee not to sue the licensee.” This means that, without a licence, any use or exploitation of intellectual property by third parties would involve a reproduction or violation.