accounting majors what are different types of licenses

A licensee is different from a vendor or contractor that provide a service. For a business that is providing use of their IP, whether it is a copyright, patent, or brand name, it is a way to invest intellectual capital while still being able to control it.įor the licensee, this agreement is a method to obtain something of value which the licensee cannot create but may have expertise in that area to generate revenue. Many agreements have some similarities, but there are some significant differences as well.Ī business will use a licensing agreement to both protect and exploit IP. Many times, these agreements will include more than one form of intellectual property.

The most commonly used licensing agreements will include trademarks, technology, and trade secrets. It will lay out how the partners enter, what all the partners agree to, and how you can get out of the agreement. Otherwise, you could stand to lose money and much more.Ī licensing agreement is what creates a partnership. You need to use the correct agreement to have a successful partnership. Similar to real estate, there are many types of licensing agreements based on the different forms of IP. With this agreement, the licensor, or the person owning the intangible asset, gets a fee for letting a licensee use or market the IP. This is known as intangible property (IP). What Are Licensing Agreements?Ī licensing agreement is a way you can make money from intellectual property, like a patent, copyright, or a trademark. If you have intellectual property, or you want to work with another company’s intellectual property, a licensing agreement can be useful. Knowing the types of licensing agreements that are available can be a great asset for you in the future.

Accounting majors what are different types of licenses