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What is a License Agreement?

A License Agreement sets out the terms under which one party (the licensor) allows another party (the licensee) to use their intellectual property, technology, or other assets. In Singapore, these contracts commonly cover software, patents, trademarks, and copyrighted materials protected under the Intellectual Property Laws of Singapore.

The agreement spells out key details like payment terms, usage limits, and duration - much like a rental contract for intangible assets. It protects both sides by clearly stating what the licensee can and cannot do with the licensed item, along with important provisions about confidentiality, quality control, and dispute resolution under Singapore law.

When should you use a License Agreement?

Use a License Agreement anytime you plan to let others use your intellectual property or want to use someone else's. This includes situations like launching a software product, franchising your business model, or commercializing patented technology in Singapore's competitive market.

The agreement becomes essential before sharing valuable IP assets with partners, distributors, or customers. For example, tech companies need it when rolling out enterprise software, manufacturers when licensing production methods, and content creators when authorizing others to use their work. Getting this in place early prevents unauthorized use and helps enforce your rights under Singapore's IP laws.

What are the different types of License Agreement?

Who should typically use a License Agreement?

  • Software Companies: As licensors, they control how their products are used and monetized in Singapore's tech sector
  • Corporate Legal Teams: Draft and review agreements to protect IP assets and ensure compliance with local regulations
  • Business Users: Sign as licensees to gain legal access to software, content, or technology for commercial use
  • IP Rights Holders: Musicians, authors, and inventors who license their creative works or innovations
  • Franchise Operations: Use licensing to expand their business model while maintaining brand control
  • Legal Consultants: Advise on terms, negotiate conditions, and ensure agreements meet Singapore's legal requirements

How do you write a License Agreement?

  • Identify IP Assets: List all intellectual property being licensed, including patents, software, trademarks, or content
  • Usage Scope: Define exact permissions, territories, and duration for the licensed assets in Singapore
  • Payment Terms: Determine royalty rates, payment schedules, and any minimum guarantees
  • Key Restrictions: Outline prohibited uses, sublicensing rules, and confidentiality requirements
  • Quality Control: Specify standards, inspection rights, and reporting requirements
  • Technical Details: Document maintenance, support, and update obligations
  • Generate Agreement: Use our platform to create a customized, legally-sound License Agreement that includes all essential elements

What should be included in a License Agreement?

  • Parties and Recitals: Full legal names, addresses, and signing authority of licensor and licensee
  • License Grant: Clear description of rights being licensed, including territory and duration
  • Usage Terms: Specific permissions, restrictions, and any sublicensing rights
  • Payment Structure: Fees, royalties, payment schedules, and reporting requirements
  • Quality Control: Standards, inspection rights, and compliance requirements
  • Termination Rights: Conditions for ending the agreement and post-termination obligations
  • Governing Law: Singapore jurisdiction and dispute resolution procedures
  • Confidentiality: Protection of trade secrets and proprietary information

What's the difference between a License Agreement and an Agency Agreement?

A License Agreement differs significantly from an Agency Agreement in several key aspects. While both involve granting rights to another party, their core purposes and legal implications under Singapore law are distinct.

  • Purpose and Control: License Agreements grant permission to use specific assets while retaining ownership, whereas Agency Agreements authorize one party to act on behalf of another
  • Legal Authority: Agents can bind their principals in contractual relationships with third parties; licensees cannot represent or commit the licensor
  • Relationship Duration: Licenses typically have fixed terms tied to specific IP or assets, while agency relationships often continue until actively terminated
  • Compensation Structure: License fees are usually based on usage or royalties, whereas agency agreements commonly involve commissions or service fees
  • Liability Framework: Licensors maintain limited liability for licensed asset use, while principals may be directly liable for their agent's authorized actions

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