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The licensing agreement between a licensor/agent and licensee is a legally binding document to protect the interests of both parties. Whilst agreements will vary according to each deal and sometimes in accordance with government or legal rules pertaining to different markets, the fundamental points of a licensing agreement refer to the licensor/agent ascribing the right to the licensee to manufacture items incorporating the licensor's brand or property and which may be sold in a particular territory, for a set period of time in return for a payment. The licensing agreement is normally prepared by the licensor and will be approved or amended by the licensee.

Being able to present your lawyers with a basic framework of a licensing agreement with your key commercial terms could significantly help to reduce consultation time at the initial stages of the legal process.

You may obtain a digital framework of a UK licensing agreement between:
1)Licensor/Agent & Licensee (16 pages)
2)Licensor & Agent (13 pages) for a fee of £95 each.
(FREE to Licensingpages® members, who may Click here)

The framework(s) will be emailed to you in 'Microsoft Word' format to allow you to adapt them as desirable.

The schedule of a licensing agreement or contract between licensor/agent & licensee may include details of:

• The Licensee and their registered office and company registration details


• The Licensor's product


• The licensed properties - the copyrighted works such as the logo type, phrases, look; trademarked works such as the actual logo, character designs etc


• Which retail outlets the licensed product maybe sold in


• The licensed products which maybe manufactured e.g. clothes - underwear, socks and t-shirts only


• The publicity material - what promotional advertising and packaging material that will promote the licensed product


• The Licensee's selling price (wholesale price to retailer)


• The deemed minimum selling price (to consumer)


• The territory in which the products may be sold


• The start and finish dates of the agreement


• The advance required e.g. £10,000


• Advance payment date e.g. 50% on signature, 50% in 6 months


• The royalty rate e.g. 10% of net receipts from sale of licensed products plus VAT


• Distribution date - the date by which the licensed products will be available for shipment to retail outlets


• Marketing date - the date by which the licensed product will appear in retail

An agreement will also include all the details relating to the approval of licensed products or publicity material; payment of royalties and statements of account; indemnities; assignment of sub-licenses; termination and many other vital clauses.