The minimum annual licence fee should be the amount the patent holder wishes to make to be satisfied with the contact. In the event that the purchaser is unable to obtain sufficient sales to exceed the minimum annual licence, the licensee must continue to pay the minimum annual licence or the patent holder has the option of terminating the licence. The patent holder could withdraw from the contract if the minimum annual licence is required. The minimum annual licence is a minimal benefit that the patent holder is willing to accept for the maintenance of the licence. Once you have obtained a patent on an invention and you earn money, another company may want to use the patented technology in its product or service. In order to give a company the right to use the patented technology, the patent holder and the company enter into a contract on the right to use the patent holder`s intellectual property. The relationship may well begin, but over a period of time with the printing of the activity, the patent holder or licensee may wish to withdraw from the licence. Since the patent holder may be dissatisfied with the licensee, the patent holder must negotiate the terms of the contract so that the patent holder can terminate the license in that case. We will look at the licensing termination provisions that would help the patent holder exit the licence if that is not a benefit. Filed under: License with: contract ceases, breach, contract, intellectual property, licensed, negotiation, rights granted, termination, termination of contract A good place to start is the termination or duration of the terms of the license. This section contains the conditions under which the parties can terminate the contract.
If you`re thinking the worst, it`s a good idea to check a license agreement. If the term of the licence is five years, the patent holder must verify whether it is acceptable to have the unit as a licensee for a period of five years. Suppose the licensee exaggerated his skills, but he gave only meagre results during those five years. Would that be acceptable? Would it be acceptable for the patent holder to be bound to the licensing agreement for the full five years? The second is called a minimum annual licence fee. The minimum annual licence is a minimum dollar amount that the patent holder wishes to pay for the licensee in order to obtain the patent holder`s patent rights.