Which Entity Is the Licensee?

February 2014Articles The Licensing Journal

When licensing a patent, software or other intellectual property from someone else, it’s critical for the licensee to ensure that the relevant agreement grants license rights to all entities who need to use the intellectual property. This may include the licensee’s parent company, subsidiaries, other affiliates, customers or other entities.

In a typical license agreement, the license grant clause, the definition of the term “licensee” and related definitions (such as the term “affiliate” or “sublicensee”) specify who may take advantage of a licensee. Unless the agreement specifically identifies an entity as a licensee or permitted sublicensee, that entity may not be able to take advantage of the license.

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