Licensing Agreements

Intellectual property licensing transforms your IP assets into revenue streams. Our specialist licensing solicitors help you negotiate, draft, and manage licensing agreements that maximise value while protecting your rights.

What Our IP Licensing Solicitors Can Help With

• Patent Licensing: Technology transfer and patent monetisation agreements
• Trademark Licensing: Brand licensing and franchising arrangements
• Copyright Licensing: Content licensing for publishing, media, and digital platforms
• Software Licensing: SaaS, enterprise software, and technology licensing
• Technology Transfer: University and research institution technology licensing
• Cross-Licensing: Mutual licensing arrangements between competitors
• Standard Essential Patents: FRAND licensing for industry standards
• Licensing Disputes: Breach of license and royalty disputes

Types of IP Licensing Agreements

Exclusive Licensing:

• Only licensee can use the IP in defined territory/field
• Licensor cannot grant further licenses
• Higher royalty rates typically achieved
• Greater licensee investment and commitment
• May include rights to sub-license
• Often includes minimum performance requirements

Non-Exclusive Licensing:

• Multiple licensees possible
• Licensor retains right to license others
• Lower individual royalty rates
• Broader market penetration possible
• Reduced dependence on single licensee
• Easier to terminate individual licenses

Sole Licensing:

• Only licensee and licensor can use IP
• Hybrid between exclusive and non-exclusive
• Licensor retains right to use IP
• Cannot grant further licenses to third parties
• Balances exclusivity with licensor flexibility

Key Licensing Agreement Terms

Scope and Territory:

• Licensed IP: Specific patents, trademarks, or copyrights covered
• Field of Use: Industries or applications where IP can be used
• Territory: Geographic regions where license applies
• Duration: Term of license and renewal options
• Improvements: Rights to future developments and enhancements

Financial Terms:

• Upfront Fees: Initial payments for license grant
• Royalties: Ongoing percentage of sales or fixed per-unit fees
• Minimum Royalties: Guaranteed annual minimum payments
• Milestone Payments: Payments triggered by development or sales targets
• Equity Stakes: Shares in licensee company as consideration

Royalty Structures and Rates

Royalty Calculation Methods:

• Percentage of Net Sales: Most common for product sales
• Fixed Per-Unit Fee: Set amount per product sold
• Lump Sum: One-time payment for unlimited use
• Combination: Upfront plus ongoing royalties
• Profit Sharing: Percentage of licensee's profits

Typical Royalty Rates by Industry:

• Pharmaceuticals: 3-15% of net sales
• Software/Technology: 1-10% of revenues
• Entertainment/Media: 5-25% of revenues
• Consumer Products: 2-10% of wholesale price
• Industrial/Manufacturing: 1-8% of sales

Licensing Agreement Negotiation

Licensor Priorities:

• Maximising revenue and royalty rates
• Maintaining quality control and brand protection
• Ensuring adequate commercialisation efforts
• Retaining key rights and future flexibility
• Minimising liability and indemnification exposure

Licensee Priorities:

• Obtaining broad scope and exclusive rights
• Minimising royalty obligations and upfront costs
• Securing freedom to operate and sub-license
• Limiting performance obligations and penalties
• Obtaining IP warranties and indemnification