Manufacturing License Agreement

Exclusive licenses give a taker full rights to a product, and the licensee cannot sell rights to other manufacturers. A non-exclusive license means that licensees can sell non-exclusive licenses to many other manufacturers as they wish. Exclusive licenses allow licensees to produce and sell themselves, but they have not been able to issue licences to other parties. An inventor may choose to manufacture the product himself or pay a third party to manufacture the product. If demand becomes too high or cash flow is not available to meet production requirements, the inventor may consider conceding the product. Licensing is also a good option for inventors who do not want manufacturing, marketing and reaching the end consumer. An inventor should consider the pros and cons of production over the licensing of his product in order to determine the pathway that best suits his needs. Know-how is an essential part of many inventions. Providing someone with the specifications of an invention is often insufficient. This agreement is specially designed for use next to a Know-How – Technical Assistance Agreement. This document contains an optional timetable for the annexation of the Know-How – Technical Assistance Agreement.

It is recommended to do so, but if, for some reason, you do not wish to attach a copy of the agreement, simple cross-reference, which is also included in this document, is sufficient. Patent holders, designs, copyrights and other intellectual property rights who live off inventions often choose to grant these rights to other than means of exploiting their inventions. Often, the owner of an invention chooses to enter into a licensing agreement with another party for the production of licenses allowing that part to produce its invention. If you set up a licensing system, it guarantees a licence fee for a certain amount. A licensee makes differences when a minimum is not reached. Audit fees should also be added. This gives a licensee the opportunity to review a licensee`s documents to ensure that fees and royalties are in compliance with the agreement. Rocket Lawyers Manufacturing Agreement is more than just a model. Use our step-by-step guide to help create your license agreement today. Other names for this document: Production licenses can be implemented in one of three types: exclusive license, non-exclusive license or individual license.