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Licensing Agreements in the United States [licensing agreement]: Essential Guide for Companies Looking to Enter a Licensing Contract in America

Industrial property rights are a strategic asset for companies: business value is increasingly tied to intangible assets like trademarks, patents, and designs

Signing the agreement for a licensing contract in the United States

A licensing agreement is a formal contract by which the owner of a property [Licensor] grants another party [Licensee] the right to use it under predefined terms.

In licensing contracts aimed at the American market, the licensor grants the licensee the right to produce and market products, utilize a brand, or apply patented technology in the United States.

In exchange, the licensee agrees to adhere to the terms established in the agreement and to pay compensation, usually in the form of royalties.

Licensing agreements govern the terms of use of intellectual property by third parties

Key Elements of a Licensing Agreement in the United States

The contract can cover different types of properties, including real estate, movable goods, and intellectual property.

In the case of intellectual property, licensing agreements govern the use of patents, trademarks, and copyrights on creative works.
 

The Most Common Types of Licenses in the United States

There are three main categories of licensing agreements:

Every Licensing Contract for the United States Must Specify the Parties Involved and the Limits of Use of Intellectual Property

Practical Examples of Licensing Agreements

The agreement defines the terms of exploitation of the intellectual property, often subject to geographical or temporal limits.

In some cases, adjustment mechanisms are provided, determining the increase in royalties beyond certain usage thresholds.

Practical Example:

A publisher wishing to use an illustration on a book cover must enter into a licensing agreement with the rights holder of the image. The agreement might include limitations, such as excluding the use of the illustration in certain advertising campaigns or applying new rates after a certain number of copies sold.

Licensing agreements are fundamental in intellectual property law and find application in many sectors:

Concluding a Licensing Contract for the United States

To draft a licensing agreement, it is always advisable to consult a lawyer specializing in licensing and royalty law

The field of intellectual property is complex, especially in the United States, where jurisprudence on the subject is vast and intricate.

It is essential that the rights holder precisely defines the terms of the agreement, avoiding ambiguous clauses that might compromise the correct valuation of the intellectual property.

The protection and development of industrial property are key elements for the competitiveness of companies.

Innovation, design, know-how, and brand image are crucial factors to stand out in an increasingly competitive global market.

In Italy, the regulation on the matter is governed by the Industrial Property Code (D.Lgs. February 10, 2005, n. 30) and the Civil Code.

Written by Tamara Natilla
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Tamara Natilla
Born in Bari, she graduated in business law from the University of Bari.
After a research period at the Complutense University of Madrid, she moved to the United States to deepen her knowledge of "common law."
She demonstrates great decision-making abilities, a propensity for continuous updating, and remarkable professional confidence.
She collaborates with the ExportUSA editorial staff in the legal field dedicated to the United States.

DISCLAIMER

The information provided in this article does not constitute legal advice or professional consultancy of any kind. It is intended solely as general, informational content. Please note that ExportUSA is not a law firm, and no business, legal, or strategic decisions should be made on the basis of this material alone. Content may be incomplete, contain inaccuracies, or may not reflect the most current regulatory or legal developments. Readers should always seek qualified professional advice before acting on any of the information presented here.

DISCLAIMER

The information contained in this article does not constitute legal advice or professional consultancy of any kind; it is provided solely as general, explanatory information. Please also note that ExportUSA is neither a law firm nor an accounting firm. We strongly advise against making decisions based solely on the content of this page, as the information provided may be outdated or contain inaccuracies. Readers should always seek guidance from qualified professionals before acting on any information presented here.
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