Licensing contracts / cooperation agreements
A licence is permission to do things with a product that would otherwise be prohibited. Intellectual property rights grant the holder far-reaching monopoly rights and so licensing agreements in trade and industry play an important role to grant third parties a full or partial right of use of intellectual property rights under defined conditions and usually against the payment of royalties, which can be limited in terms of space, time and content.
Co-operation agreements between companies also often include an agreement of reciprocal licences under which both companies give each other the right to use the licence.
When contracts are drawn up, great care must be given to the drafting, as far-reaching rights and obligations between the parties are agreed in the licensing agreements. It should be kept in mind that licensing agreements not only govern arrangement when the parties are in agreement, but, above all, at a time when the parties to the agreement are no longer in agreement.