Licensing And Merchandising Agreement
If the taker does not meet its obligations, the licensee has the right to terminate the contract. However, this measure is generally avoided at all costs, as the termination of a merchandising licence agreement can result in a loss of revenue and missed opportunities to use the licensee`s property and the waste of an often significant investment on the part of the purchaser. Introductory paragraph. The introductory paragraph should identify the individuals or companies that enter into the so-called “parties” agreement. The introductory paragraph may also include the business structure of the parties (companies, individual companies, etc.) and the commercial addresses of the parties. Add this information, if you wish, based on the name. B of each part, “Artco Manufacturing, a California-based company at 434 W. Oakdale Avenue, Los Angeles, California.” In place of the licensees and licensees, the agreement may be drafted in such a way that the names of the parties are used for the duration of the agreement or conditions such as “artist” for the licensee and “manufacturer” for the taker. But once you`ve decided to use certain terminologies like this, make sure it`s used consistently throughout the agreement. In some licensing agreements, introductory information is called “Whereas” rules.
The agreement could be. B: “While DTK Decorating Company (the licensee) wants to acquire rights.” The use of the term “whereas” has no particular legal significance. 2.9 Agreements with manufacturers. The licensee has the right to arrange with another party the manufacture of the products or components granted for sale, use and distribution exclusively by the licensee. The underwriter undertakes to enter into a written agreement with all these manufacturers and undertakes to include in these written agreements all the provisions relating to the protection of the licensee`s rights contained in the trainer agreement available from the licensee. The licensee also undertakes to submit copies of all agreements with these manufacturers to the licensee within five days of their completion. Failure to comply with an aspect of this section is a substantial offence and the licensee has the right to terminate the contract immediately. The granting of rights. The granting of rights (also known as a “subsidy”) officially authorizes the use of the work, describes the rights granted and determines whether the rights are exclusive or not. In a goods licence agreement, the subsidy must include the following rights: valuation. When it comes to licensing your work, operation is a good thing.
You want to make sure the licensee doesn`t just sit on your job, which would prevent you from earning the royalties you expect. If it is an exclusive agreement, the licensee`s inaction would be doubly frustrating, as you cannot concede the product to others. The use provision addresses these concerns by setting a date on which the licensee must release the licensed product. Sometimes the release date will coincide with a seasonal trade show or catalogue. If the licensee does not meet this date, you can claim that there is a “substantial violation” that provides a basis for the termination of the license agreement. Return to sample approval agreement and quality control. This provision gives you the right to review and approve samples and prototypes of the artwork before entering the full production. This provision encourages the licensee to reproduce your work correctly and avoids unpleasant surprises. If you have the influence and bargaining power, you can extend this provision to give you the right to audit production facilities and to refuse any subcontracting industry if their standards are not sufficient.
Injury by third parties. Imitation may be a form of flattery, but it is also a form of injury. Unethical competitors often create imitations of licensed products.