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Facts about IP
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Working out and registration of licensing agreements

According to the licensing agreement, one party (licenser) concedes to the second party (licensee) the permission to use the object of a right to the intellectual property (license) on terms, determined by the mutual agreement of the parties, regarding the requirements of the legislation.

One of the differences between the licensing agreement and rights transfer contract is the fact that the holder of the object of a right to the intellectual property, who is signing the contract, remains the same and is not changed.

Particularly, licensing agreements are not subject to the obligatory state registration. Nevertheless, in the recent time, both parties of the licensing agreement agree that such a registration is necessary for their own security. And the cost of the procedure of the agreement state registration is rather acceptable. More details about kinds of the license and peculiarities of the licensing agreement you will find below.

Specialists of our Agency will skillfully and professionally work out the licensing agreements to the objects of the intellectual property you are interested in, on the basis of the tasks, specified by you and terms, required by you.

The license for using the object of the intellectual property is the written authority, issued by the person, who has the exclusive right to give a permission to use the object of the intellectual property (licenser), to the second person (licensee). The given letter of authority gives the right to the licensee to use this object in the specific restricted sphere.

The license for using the object of the intellectual property can be prepared as a separate document or be the constituent part of the licensing agreement.

The Civil Code of Ukraine provides three kinds of licenses: exclusive license, non-exclusive license, single license.

The exclusive license is issued only to one licensee and excludes the possibility of using by the licenser the object of the right of the intellectual property in the sphere, limited by this license, and the issue by him to other persons the licenses for using the given object in the specified sphere.

The single license is issued only to one licenser and excludes the possibility of issuing by the licenser to the other persons licenses for using the object of the right of the intellectual property in the sphere, limited by this license. But it does not exclude the possibility of using by the licenser the given object in the specified sphere. 

The non-exclusive license doe not exclude the possibility of using by the licenser the object of the intellectual property in the sphere, which is limited by the given license, and issue by him to other persons the licenses for using the given object in the specified sphere.

The sublicense is the letter of authority, issued by the licensee to the other person (sublicense) for using the object of the intellectual property. An important condition of issuing the sublicense is the fact that it can be issued only with the written consent of the licenser.

The licensing agreement is as a rule concluded regarding the already registered object of the intellectual property.

The licensing agreement provides:

  1. the kind of the license,
  2. sphere of using the object of the right to the intellectual property,
  3. specific rights, granted by the agreement, methods of using such an object,
  4. territory of using such an object,
  5. terms, for which the using of the intellectual property is granted,
  6. volume, order and terms of paying the remuneration for the use,
  7. and other terms, which the parties consider to be worthwhile for including to the contract.

It is important! The rights for using the object of the right to the intellectual property and methods of its use, which are not provided by the licensing agreement, are considered as such ones, which are not performed to the licensee.

The licensing agreement is concluded for the term, which should expire not latter than the expiration of the exclusive property rights for the object of the right to the intellectual property, specified by the contract.

The franchising contract is called by the language of the Ukrainian legislation “commercial concession agreement”. According to the commercial concession agreement, one party (right holder) is obliged to submit to the second party (user) for the extra payment the right of using the complex of rights, which belong to the right holder with the purpose of production and (or) selling the specific kind of products and (or) rendering services.

The subject of the commercial concession agreement is the right to use objects of the right of the intellectual property (trade marks, production pieces, innovations, commercial secrets, etc.), commercial experience and business reputation. The parties of such an agreement can be natural persons and legal entities, which are performers of entrepreneurial activities.

The form of the areement: the commercial concession agreement must be made in writing form.