Licensing contract: rules of drafting

The licensing contract is a document that records the transfer by the right holder of the right to use the intellectual results to another party. These results include science, literature and art, software and databases, inventions, useful models, industrial samples, know-how and others. The law holder is a licensee and the recipient is a licensee.

The licensing contract thus provides for a transfer of the rights to use development, know-how and other facilities from the author to another person, granting authorization to use the invention, know-how, trademark and other facilities under certain conditions.

Licence may be exclusive (referring only one licensee) and non-exclusive (the right of use is transferred to several licensees).

The licensing agreement is often used to commercialize scientific developments. For example, a scientific institution could create a new invention and patent it, but could not turn it into a product. An entrepreneur can enter into a licensing contract with the Institute and market the product.

An example of the successful use of such an agreement is the history of Alexander Listkov, who has marketed a dental gel for the prevention of caries developed in the Om Medical University. The transfer of the right to use the patented invention was made through a licence agreement.

How to make a licensing contract

The treaty should be written. The parties ' requisitions, the subject of the contract, the manner in which the intellectual property facility was used, the type and duration of the licence, the amount, the order and duration of the payment of compensation.

It is important to describe in detail the object to which the rights under the contract are subject, indicating the name and information of the patent or certificate.

The duration of the licensing contract may not exceed the duration of the exclusive right to the result of intellectual activities. If the exclusive right ceases, the licensing contract shall also be terminated.

Patent rights are calculated from the date of application in Rospatent: 20 years for inventions, 10 years for useful models, 5 years for industrial samples (may be extended repeatedly for 5 years, but generally not for more than 25 years).

There are several types of royalties: a fixed amount, periodic payments, interest on profits or a mixed option. There's also a possibility of a grant of rights. The type of remuneration must be specified in the contract, otherwise it would not be considered to be concluded.

Before signing the contract, it is recommended that the employer obtain a lawyer ' s advice in order to ensure that the document is correct and avoid future problems. A template for a licensing contract can be found in the Document Designer on the ICP.RF Digital Platform.

The licensing treaty should be registered in Rospatente. Without this procedure, it is invalid. The registration application is submitted in accordance with the approved form. Since the State registration, the contract has been concluded.

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