Documents / IP & Media
Licensing Agreement
License your IP, brand, or content to another party — with territory, royalties, and quality control built in.
Time
~12 min
Questions
21
Steps
4
Export
PDF · Word
You will answer guided questions with a live preview, then export, share, or send for e-signature. Free during launch.
What we will cover
- 01
The Parties
The Licensor owns the property; the Licensee gets permission to use it.
- 02
The License
- 03
Royalties & Fees
- 04
Protections & Legal Terms
- 05
Review and generate
AI review, edits, export, and e-signature.
About this document
A licensing agreement lets someone else use your intellectual property while you keep ownership of it. It sets out what is licensed, where it can be used, for how long, what the licensee may and may not do with it, and how you get paid — a flat fee, a running royalty on net sales, or nothing at all. Whether the property is a trademark, software, artwork, a character, or a manufacturing process, the value is in the boundaries.
Two details cause most of the trouble. Exclusivity is stronger than people expect: an exclusive licence usually locks out the owner too within the licensed territory and field, so carve out your own continuing use if you want it. And a trademark licence without quality control is genuinely risky — if you never supervise how the mark is used, the mark itself can be weakened or lost. Reserve approval rights and use them.
Common questions
What is the difference between an exclusive and non-exclusive licence?+
An exclusive licence means the licensor will not grant the same rights to anyone else in the defined territory and field, and commonly restricts the licensor's own use as well unless the agreement says otherwise. A non-exclusive licence lets the licensor keep licensing the same property to others. Exclusivity commands higher royalties and is often paired with minimum sales targets so the licensee cannot sit on the rights.
What is a typical royalty rate?+
It varies enormously by industry — consumer merchandise, software, and publishing all price differently, and rates are commonly quoted as a percentage of net sales rather than gross. Define 'net sales' precisely, since the deductions clause moves the money more than the headline percentage does. Pair a running royalty with an annual minimum if you want guaranteed income.
Do I have to register a licence agreement?+
No — a licence is a private contract and takes effect on signature. Patent and trademark licences may optionally be recorded with the relevant office, and some exclusive arrangements are recorded so third parties are on notice. What matters far more is that the licensed property is described precisely enough that a stranger could identify it.
General information, not legal advice — laws vary by state and change over time.
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