Patent license agreement

The patent license contract is an intellectual property contract under the terms of which the patent holder grants one or more other persons – called licensees – the exclusive right to use the patent or certain applications of that right. Unlike an assignment, the license does not transfer the patent right, which remains the property of the patent holder. In other words, a patent license is an agreement that allows a third party to use a patented invention in return for payment of a royalty or another form of financial compensation. The patent holder (the licensor) grants a license to the third party (the licensee) to use the patented invention in a certain field or for a certain period of time.

This license may be exclusive or non-exclusive. In the case of an exclusive license, the patent holder grants the third party the exclusive right to manufacture, sell, and use the patented invention. In the case of a non-exclusive license, the patent holder may grant licenses to several third parties to use the patented invention.

Patent licenses can be used for different reasons. For example, a company can obtain a license for a patented invention in order to manufacture a product or provide a service that uses this invention, or a researcher can obtain a license to conduct additional research on the patented invention.

Patent licenses are often used in sectors where research and development costs are high and where collaboration between companies can be beneficial for all parties involved (e.g. pharmaceuticals). Patent licenses can also be used to avoid costly litigation for patent infringement, as they allow parties to settle disputes amicably.

In any case, it is best to call on a patent attorney to draw up this agreement.