IP Licensing

Copyright, BananaIP, 2014

Dr. Kalyan Kankanala,[email protected]

www.bananaip.comBlog: www.bananaip.com/sinapse-blog

IP Licensing

Intellectual Property


• Subject Matter

• Species of IP

• Patents

• Copyrights

• Trade Secrets

Transfer of IP


• Assignment

• License

• Exclusive

• Non exclusive

• Sole

• Proprietary

• Open Source

• Free

• Standard

• Shrink wrap

• Click wrap

• Browse wrap

Classification


Important clauses


• Recitals

• Definitions

• Grant

• Royalties

• Term and Termination

Recitals


• Parties – Licensor/Licensee

• Addresses

• Dates

• Background of the transaction

Definitions


• Interpretation clause

• Consistently used words: Specific/certain/lucid

• Attribute specific meaning

• Apply to entire agreement

Examples


• "Licensed Software" shall mean the proprietary software of the Licensor, entitled 'TalkSoft', for voice enabled screen reading.

• "Licensed Intellectual Property" shall mean

• a. Patents and patent applications covering the Licensed Software in USA and India, bearing numbers In123, and US879; and

• b. Copyrights over the object code, source code, and interfaces of the Licensed Software.

Grant Clause


• Most important• Defines scope of agreement• States• Parties• Type• Subject• Rights• Territory• Term

Example


• Licensor grants to Licensee a nonexclusive license to use the Licensed Software within the territory of India from 1st January, 2005 to 1st January, 2006.

• This clause specifies • Who grants to whom -Licensor to Licensee.• Type of license - Nonexclusive License• Rights – Use Licensed Software• Territory - India• Dates - January, 2005 to 1st January, 2006

Term and Termination


• Term• Events

• Material Breach - Nonpayment of royalty, etc.• Bankruptcy• Insolvency• Act of god

• Rights after termination• Confidentiality

Royalty Clause


• Type of Royalty

• Lump sum royalty

• Fixed Royalty

• Running royalty

• Combination

• Mode and Date of payment

• Accounting and Record keeping

• Non payment consequences

Example


• XYZ agrees to pay ABC, a royalty of Twenty-Thousand-Dollars ($ 20,000) per every Calendar Year after the first year from the Effective Date. For the first Calendar Year, XYZ shall pay ABC a fixed royalty of Ten-Thousand Dollars ($ 10,000). Such sum shall be paid on or before December 11th of every Calendar Year.

Other Clauses


• Indemnity

• Warranty

• Liability

Open Source Licenses


• Principles

• Free Distribution

• Source Code

• Attribution

• No Warranty/Liability

• License

Examples


• Viral - GPL

• Flexible - BSD

• Restrictive - MPL


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Questions, Comments or Observations?

IP Licensing

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