What Is Non-Exclusive License Agreement

However, you should note that this classification is not restrictive. There are also other types of licenses. For example, for so-called “co-exclusive” licenses, the licensor grants a license to more than one licensee, but agrees that it only grants licenses to a limited group of other licensees. In addition, so-called “exclusive licenses” are those whose license is exclusive, which means that there are no more licensees, but the licensor also reserves the full right to exploit its intellectual property. An exclusive license grants the licensee a single authorization to exploit the intellectual property in question. No other entity, including the licensor (Licensor), may use the intellectual property covered by the License unless certain exclusions are included in the Agreement. Although in both cases Licensor authorizes Licensee to use its intellectual property in exchange for negotiated compensation, exclusive and non-exclusive licenses relate to the degree of exclusivity granted to Licensee. The recipient of a non-exclusive license may exercise the right(s), but may NOT exercise: 2.2 HARVARD has the authority to issue licenses under PATENT RIGHTS. If a license is designated as “exclusive” but is limited to a specific territory or use, the parties should carefully consider the extent to which the licensee can sue, defend and enforce intellectual property rights. Although the license is qualified as “exclusive”, other licenses may be granted under the same intellectual property rights in other territories and/or areas.

These other licensees may wish to be involved in the prosecution, defense and enforcement of intellectual property rights, as these activities are likely to affect the value of their license. In this sense, a territorial or land license is not synonymous with a fully exclusive license. By nature, exclusive licenses grant more rights than non-exclusive licenses and typically involve a number of contractual obligations related to intellectual property, including registration/prosecution, defense, and enforcement of intellectual property rights. To address the risk that Licensor takes when it waives its right to commercialize intellectual property, exclusive licenses generally require Licensee to reach certain stages of development, commercialization and/or minimum sales targets. Exclusive licenses are attractive to most licensees because they essentially have a monopoly on intellectual property, and attractive to most licensors because they can claim premium compensation for granting such licenses because they generally waive the right to market them themselves. Non-exclusive licenses grant the licensee intellectual property rights, but also allow the licensor to exploit the intellectual property in question – including the licensing of other companies. In general, non-exclusive licensees compete with other licensees. Whether a license is exclusive or non-exclusive has implications for several other terms of the license, for example: In the case of an exclusive license, the parties agree that no other natural/legal person may exploit the relevant intellectual property rights other than the licensee. .