How to get a patent licence agreement

Do I need a patent attorney to draft a patent licence?

Although it is always a good idea to have a patent licence drafted by a patent attorney with licensing experience, this is an expensive option. For a patent attorney to prepare a draft patent licence typically costs +R25,000, and this cost increases as revised drafts bounce between attorneys representing both sides.

Should I use a template licence agreement?

Template licence agreements are often extremely rigid, forcing the parties to fit within the “template box”. In most cases, a template licence cannot be customised sufficiently to reflect the parties’ intention. Generally, this isn’t a suitable option.

Using Licence Direct

Licence Direct offers parties guidance during licence negotiations and provides a highly customisable licence.

The Licence Direct Questionnaire ensures that relevant issues are considered during negotiations. The options are explained and objective advice provided to (hopefully) iron-out disputes.

After the Questionnaire is completed, a licence based on the Questionnaire can be downloaded for signature.

The downloaded licence is 100% neutral and does not “lean towards” either party (since neither the licensor nor licensee are the “client” of Licence Direct).

To revise the licence, simply update the Questionnaire inputs and download a new version of the licence.

Licence Direct is easy to use – you don’t need to register or accept T&Cs. And, it’s free.

Some of the issues covered by Licence Direct:

• Types of intellectual property licensed
• Type of licence granted
• Royalties (upfront, running)
• Minimum royalties
• Territorial scope and specific exclusions
• Improvements to the intellectual property
• Sublicensing
• Confidentiality obligations
• Marketing obligations
• Surplus stock
• Infringement of licensed intellectual property and third party claims of infringement
• Maintenance of licensed intellectual property
• Recordal of licence
• Warranties and indemnities
• Technical assistance by licensor
• Quality control
• Arbitration
• Choice of law