Licensing Agreement Template

Use our Licensing Agreement to license out intellectual property.

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Updated September 21, 2023
Written by Yassin Qanbar | Reviewed by Brooke Davis

Create a licensing agreement to have a written legal contract between two parties that gives permission from a property owner to another party to use their intellectual property.

Learn about licensing agreements below and how to create one today.

What is a Licensing Agreement?

A Licensing Agreement is a legal document between the Licensor, the person who owns the intellectual property (IP), and the Licensee, or the person receiving a license to use the IP. The

Licensors can own a copyright, trademark, patent, service mark, trade secret, know-how, or other IP.

As a reference, this agreement is also known by other names:

Elements of a Licensing Agreement

A simple Licensing Agreement will identify the following essential elements:

Types of Licensing Agreements

You can grant a few licenses on the above IP – exclusive, non-exclusive, or sole.

Exclusive License

An exclusive license gives the Licensee the exclusive and only suitable one to use the IP – not even the Licensor can use the IP. Once a Licensor grants an exclusive license to someone, no other licenses on that IP can be given to anyone else.

Non-Exclusive License

A non-exclusive license grants the Licensee the right to use the IP, but the Licensor is free to use the IP and grant licenses to whomever it wants. Therefore, many parties can hold licenses to the same IP simultaneously.

Sole License

An exclusive license grants the Licensee an exclusive license, but the Licensor keeps the right to use the IP. So, although the Licensor will not give any additional permits, the Licensor can continue using the IP, and any previous licenses can remain in effect.

When is a Licensing Agreement Needed?

If you own a patent on a valuable piece of technology, have a copyright on a famous photograph, have trademarked a particular image, or hold some other invention or creative work you want to make money on, you will need a License Agreement.

This agreement allows you to set the terms of everything related to that particular IP and protect your proprietary rights, including how the Licensee can use the IP, who owns the IP, who can sublicense the IP, the price of the license for the IP, and how long the Licensee can use the IP.

Several different types of IP can be covered under this agreement:

Benefits of a Licensing Agreement

Fees and Royalties

There are several fees you could charge for your IP:

Your licensing deal could contain only one or any combination of these payment methods.

Examples of Licensing Agreements

Here are some possible scenarios where you might consider using this agreement:

Possible Licensors Possible Licensees
Trademark owner of a popular sloganManufacturer wanting to print the slogan on t-shirts
Blogger talking about a beauty productThe beauty product company wanting to use the blogger’s content as a review
Photographer who took photos at a resort hotelThe resort hotel wanting to use the photos for a brochure
Patent holder of a certain partCompany who needs the part to make their machines

How to Write a Licensing Agreement

To create a licensing agreement, you can use our document builder to create one in minutes. Fill in the blanks, and your license agreement will be ready in PDF or Word format.

It would be best if you answered the questions, and our builder will do the rest.

What Should be Included in a Licensing Agreement?

A simple Licensing Agreement should generally have at least the following:

Here are some additional provisions that may be included in your agreement:

Related to the IP

Liabilities

Legal Speak

Licensing Agreement Sample

The sample licensing agreement below shows what a typical agreement looks like:

Sample Licensing Agreement

Consequences of Not Using a Licensing Agreement

Without this agreement, the owner of valuable IP would be unable to make money on that IP or control how the IP is used out in the world.

Individuals and companies that need specific IPs to grow their business or make a living might not be able to have access to them.

Here is a list of some of the suffering having this agreement could prevent:

LicensorLicensee
Loss of Time
- time spent preventing others from using IP in unwanted ways
Loss of Time
- time spent defending use of IP
Loss of Money
- another business uses your IP without paying you
Loss of Money
- unable to capitalize on goodwill from valuable IP
Mental Anguish
- goodwill of business harmed or trademark diluted
Mental Anguish
- receive cease and desist letter

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Create Your Licensing Agreement in Minutes!