License Agreement Template

License Agreement Template

What Is a License Agreement?

A License Agreement is a legal contract signed between a licensor and a licensee in which the licensor is legally bound to grant the licensee the right to produce and sell goods or provide services under the brand name or trademark the licensor owns. The purpose of the document is to regulate the relationship between the involved parties in order to protect the rights of both the licensor and licensee.

The agreement can be used in different areas of business. The most common types are:

  • Copyright License Agreement . Generally, this type of agreement allows the licensee to use the licensor's copyrighted materials, such as books, music, paintings, etc. Under this contract they can reproduce and distribute it for a certain period of time and on a specific territory stated in the document;
  • Patent License Agreement . In this type of License Contract, the licensee is permitted to manufacture and sell (or use) a specific invention patented by the licensor. The contract also regulates how much the licensee is entitled to pay for permission to use the patented invention.

A License Agreement template can be downloaded below or you can make your own using our online form builder.


What Is an End User License Agreement?

Some license agreements have more limitations and restrictions than others. For example, an End User License Agreement (EULA), also known as a Software License Agreement, is a type of contract signed between a licensor (a software owner) and a licensee who is also the end-user. It means that the user pays the licensor for the right to use the software by accepting the terms and conditions of the EULA.

The document details all of the restrictions that the user, in this case, must follow. Most of them forbid the user from copying the software, distributing or leasing it, and only allow the specific use of it, such as for personal use. While the ownership of the software belongs to the licensor, the user has a right to get access to the software and use it accordingly with the agreement. In situations like this, the licensor usually uses the additional measures of electronic security for its software to protect it from illegal distribution.

How to Write a License Agreement?

A License Agreement is a complex document whose purpose is not only to grant the rights of use to the licensee but also to protect the ownership rights of the licensor. To secure the position of both parties the contract can include parts, such as:

  1. The Parties . In the first part of the document, the involved parties should designate their full names for identification purposes.
  2. Definitions . Here the parties can define the most used terms of the agreement. It will help to clarify the terms for everybody involved.
  3. Grant of License . Parties use this part of the document to state the object of the agreement, what kind of rights the licensor grants to the licensee, what they are allowed to do with the object of the agreement, on which territory, and for how long they are allowed to do it.
  4. Rights and Obligations . This part is supposed to list the rights and obligations of each party. For example, it can include the obligation of the licensee not to use the object of the agreement for purposes other than those stated in this License Agreement.
  5. Schedule of Royalties . Here the parties should designate the details of the payment that the licensee is supposed to pay to the licensor for the permit to use their rights. They should state how much they are supposed to pay, how often, and how the payment is supposed to be transferred.
  6. Notices . Parties should state their contact information for notification purposes. It should include their addresses, telephone numbers, and emails.
  7. Governing Law . The agreement should designate which state law it is supposed to be construed and governed by.
  8. Signatures . To express their consent with everything stated in the document, the parties should sign the agreement.

The parties can include other sections in their agreement, such as jurisdiction, information about representatives, termination of the contract, amendments, confidentiality clause, indemnification clause, severability, etc.

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