License Options and Description
Annual Exclusive + Royalty
This license grants the licensee exclusive use of the intellectual property. No sub-license is allowed. An annual fee is paid once a year (starting with initiation). In addition a per piece royalty is also paid. This is collected on the 15th of the month following the month of production or use. Example: Manufacturer licenses IP to produce a widget. They pay $1000 for the right each year and $.10 for each widget produced.
Annual Exclusive No Royalty
This license grants the licensee exclusive use of the intellectual property. No sub-license is allowed. An annual fee is paid once a year (starting with initiation). Example: Manufacturer licenses IP to produce a widget. They pay $1000 for the right each year to produce the widgets regardless of the quantity produced.
Annual Non-Exclusive + Royalty
This license grants the licensee a non-exclusive use of the intellectual property. No sub-license is allowed. An annual fee is paid once a year (starting with initiation). In addition a per piece royalty is also paid. This is collected on the 15th of the month following the month of production or use. The licensor retains the right to grant additional non-exclusive licenses. Example: Manufacturer A licenses IP to produce a widget. They pay $1000 for the right each year and $.10 for each widget produced. Manufacturer B licenses IP to produce a widget. They pay $1100 for the right each year and $.09 for each widget produced.
Annual Non-Exclusive No Royalty
This license grants the licensee non-exclusive use of the intellectual property. No sub-license is allowed. An annual fee is paid once a year (starting with initiation). Example: Manufacturer A licenses IP to produce a widget. They pay $1000 for the right each year to produce the widgets regardless of the quantity produced. Manufacturer B licenses IP to produce a widget. They pay $1100 for the right each year to produce the widgets regardless of the quantity produced.
Annual Partial Exclusive + Royalty
This license grants the licensee exclusive use of the intellectual property, but with limitation. These could be geographical, market, etc. No sub-license is allowed. An annual fee is paid once a year (starting with initiation). In addition a per piece royalty is also paid. This is collected on the 15th of the month following the month of production or use. Example: Holding Company licenses IP to produce a pink only widget. They pay $3000 for the right each year and $.10 for each widget produced to allow all their manufactures the right to produce pink only widgets.
Annual Partial Exclusive No Royalty
This license grants the licensee exclusive use of the intellectual property, but with limitation. These could be geographical, market, etc. No sub-license is allowed. An annual fee is paid once a year (starting with initiation). Example: Holding Company licenses IP to produce a pink only widget. They pay $5000 for the right each year to allow all their manufactures the right to produce pink only widgets, regardless of quantity produced.
Royalty Only
This license grants the licensee the right to produce an unlimited amount of widgets as long as the pay a fee for each one produced. There is no annual fee. The royalty is due on the 15th of the month following the month of production. Example: Manufacturer licenses IP to produce a widget. They pay $.10 for each widget produced.
Sale – Full Assignment of Rights
This option transfers all rights of the intellectual property to the new owner.
