Patent licensing refers to giving complete rights related to a product, service or idea to the inventor. License is like a contract on several terms on which both the parties agree upon. In all types of licensing, generally parties agree upon a deal based on mutual adjustment. Those who invent new ideas, products or services need to get proper credit. This ethical obligation is fulfilled by Legal Patent Licensing. Issuing and getting the patent license involves a lot of procedures that are best handled by professionals.
First of all, Patent license seekers need to prove their authenticity. Proper planning is expected on the part of the patent license seeker for negotiating their license plea. Patent License Agreement is not only for getting license for one’s own inventions but also to use others’ patent. Patent License Agreement is of two types:
- In License Agreement: In this agreement, the party acquires the right to use ideas, products or services owned by some other party. This agreement saves the parties from penalty in case of infringement. License Agreement also offers IP rights to the parties seeking it. Because of easy accessibility to new products and processes, parties succeed in bringing an innovation in their existing products and processes. It is to be noted that In License Patent gives the owner the right to make use of other’s invention but within a limit.
In this type of agreement, a patent holder issues the right to use the patent to other parties. Many parties go for this agreement to generate revenue from the patent. Out License Agreement also offers the patent holders an opportunity to come up with new ventures.
There are various types of Patent Licenses depending upon the rights offered to the patent license seeker. Different types of patent licenses are:
Sole License: Sole license is an exclusive deal between a license and licensor with the condition that the patent holder will not enter into deal with any other party except the one with which it has already entered into an agreement.
Exclusive License: In Exclusive License, a party holding the patent rights keeps only the title to the patent but no other rights. In case of Exclusive License, the licensee holds the rights to further offer the license to other parties.
Non-Exclusive License: In case of non-exclusive licensing, the patent holder holds the rights to license all the rights to a number of parties. Here the licensor, at the same time, holds the rights to use the patented invention.
Cross Licensing: Cross licensing is like a deal between two parties regarding the rights to intellectual property. In this type of licensing, instead of royalty or payment, the parties get the right to use one another’s intellectual property.
Companies or individuals looking forward to enter In License and Out License Patent Agreement need to search for companies offering Patent Licensing Services. Many such companies are enlisted online where the patent license seeker can get innumerable options to choose from.