Software Licensing: Software License Agreement | Law&Trust International

A license agreement (license agreement) is an agreement made between the owner of a property, patent or trademark and another party who wants intends to make use of the property, patent or trademark, the license grants permission to the licensee under specific conditions. It transfers the rights to exclusively make use of the created or registered intellectual property.

Under a licensing agreement for the sale of software or computer game rights, the owner (licensor) grants permission to the licensee rights to make use of any intellectual property in a particular territory. The licensee, in turn, undertakes to fulfil some counter-obligations (for example, to deduct a specified monthly amount, perform the required actions, or refrain from such activities).

Term Of Software License Agreement: How Does a Software Licensing Agreement Work?

It is necessary to take into account what's contrary to the prevailing opinion, the validity of a license agreement is limited to the period during which the object of intellectual property transferred under the established license agreement is protected.

Thus, if a prepared license agreement grants access to the transfer of the rights to a trademark, then such a contract cannot exceed a period of ten years, because the period for which a brand’s license is valid for is ten years from the date of registration.

Drafting Of A Software License Agreement

We recommend that you seek the help of professionals when looking to create licensing agreements. When creating a license or distribution contract, in particular, it will be required to take into account to meet the following requirements, they include:

  • 1) The subject of the deal, that is, the complete specification and individualization of the object of intellectual property, the right to share the transferred object is duly specified under the terms of the contract;

  • 2) The condition on the amount of the counter-obligation (remuneration) and the stipulated procedure for its determination. If there is no such condition, then the created license agreement is considered not valid by either party.
  • 3) The complete designation of permitted uses of intellectual property, as the licensee is entitled to use the transferred intellectual property exclusively to the extent and ways provided for by the established license agreement.
  • 4) The validity of the license agreement depends on the conditions of each given territory, this is because the protection of the intellectual property is territorial in nature. At the same time, the region specified in the agreement between the licensor and the licensee cannot be more extensive than the area of the legal protection of the intellectual property itself. This means, for example, If a contract grants the right to use the trademark of the European Union (European Union Trademark, EUTM), then the contract will be valid only in the territory of the European Union. However, under the terms of the agreement, the area of use may be narrowed or may cover several countries or regions of a particular country.
  • 5) Terms of exclusiveness/non-exclusivity of the license. These conditions will govern the rights of the licensor, which he will have after the conclusion of the contract. So, when concluding a non-exclusive license agreement, the licensor may enter into the same deals with third parties, as well as use the intellectual property itself. In the case of an exclusive license, the right holder for the duration of the license agreement loses the right to enter into contracts and independently make use of its intellectual property.

It is necessary to take into account that the license agreement must be created and concluded in writing, and in some cases, the created license agreement is subject to state registration. This determines whether to register a prepared license agreement, you’ll need to check whether the deal is subject to registration (that is, the object to which the rights are transferred under the agreement). For example, if the right to use a trademark is transferred under a license agreement, then the contract itself must be registered.

Licensing agreements are the basis of any activity with intellectual property objects aimed at making a profit. Adequately prepared agreements will maximally protect your legitimate interests as a developer or publisher. When preparing licensing or distribution agreements with or without the right to reproduce software, you should contact a specialist to eliminate the risk of loss of intellectual property rights or insufficient compensation for the alienation of the object itself.

Why Software Licensing and Protection Services by Law & Trust International?

The benefits of software licensing and protection services with Law & Trust International includes the following:

  • Drafting the license and distribution agreements; 
  • Protection of intellectual property rights;
  • Collection, preparation and filing of the necessary documents;
  • Contract agreement (both local and international);
  • Protection of consumer rights of the company;
  • Drawing up contracts, agreements, preparing public offers, technical documentation (Terms of use, non-disclosure agreements, software development agreements, privacy policies, license agreements);
  • Registration of intellectual property rights (the Madrid Protocol System, PCT, EPO, OHIM);
  • Development and implementation of a system for the confidentiality of information and trade secrets;
  • Registration of intellectual property rights;
  • Development of a legal and corporate strategy for an investment project (as the client or the company);
  • Preparation of the project budget, financial plan and reports for the investor.

Law and Trust International offers a wide range of services in the IT sphere. For each case, we select the most optimal strategy plan that will be beneficial to our client.

For more detailed information about our legal support system, please contact Law & Trust International by simply sending an email or call now to take your business to the next level! 

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Key benefits of legal services offered by Law and Trust International

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Experience and qualifications. The experience of the L&T International team is more than 15 years. It gives the opportunity for working with cases in many business areas like finance, IT, agriculture, trade and foreign economic activity. Thanks to this experience, our specialists always offer the best selection of services.
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Comprehensive approach and individual solutions. Law and Trust International always provides a vast range of services for our clients, taking into account the individual characteristics of each particular case. Due to this symbiosis, our specialists always fulfil all the wishes of clients in full and taking into account the requests and preferences of customers.
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Monitoring and innovation.Our team keeps tracking the newest and most advanced working methods, as well as the latest legislative, financial and economic information events around the world. It allows lawyers of Law and Trust International to quickly and creatively resolve virtually any issues in the field of legal consulting.
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Privacy and responsibility. The security of our customers' data and respond to them are particularly important in the work of Law and Trust International. For all the time of work, we have not had a single leak of commercial, personal or legal information. It allows us to develop, grow and achieve new opportunities.
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Reputation and result. A team of lawyers of Law and Trust International always welcomes the success of our clients. Reaching new results, we develop new skills that we successfully use in our work. Thanks to successful cases, our clients and our team, we are creating qualitatively new opportunities to achieve the desired result now.

Clients and partners

Aliplay
Moneypolo
Meridian
Plag
InDriver
Sola
Wanna
BaltBank
MDK
BitSec
SemRush
AAC
sintez
JetTransfer
Abyss
MailRu