An intellectual property (IP) licence agreement is entered into when one party (Licensor) wishes to provide a licence to use its intellectual property to another party (Licensee).

This IP licence agreement is drafted to protect the interests of the Licensor and is intended to set out a description of the IP and the commercial terms (e.g. price and payment method) at which the IP will be licensed.

It is recommended that the IP licence agreement is entered prior to the Licensor providing the IP to the Licensee.

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What’s included?

The document is 7 pages long, contains 8 sections and one schedule.

Important clauses covered in this document include:

  • grant of licence
  • new materials or improvements
  • licence fee and payment
  • obligations and warranties
  • term and termination

The IP Licence template is most suitable for early-stage or small companies.

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