Issue link: https://htpgraphics.uberflip.com/i/246988
The Licence – the Basics Section 5 Scenario: Your licensee is keen to obtain an exclusive licence in a particular Field. You are not sure that your licensee has the capacity or the experience in that Field. Suggestion: You could provide your licensee with a non-exclusive or a sole licence in that Field for a limited period of time. If your licensee is able to demonstrate to your satisfaction a certain level of achievement or commitment within the time allowed you could then convert the licence to exclusive terms. Sub-licensing A sub-licence is a licence which is subsequently granted by the licensee as opposed to the licensor. It is a bit like a tenant sub-letting your flat or house to someone else. You will need to specify in a licence whether or not the licensee is permitted to sub-license the rights which it has been granted. Why might I want my licensee to have the ability to sub-license? If you think that your IP will become more valuable by your licensee appointing third parties to assist, you may want to consider allowing your licensee the right to sub-license. n n If, for example, your licensee has a licence to use your IP to manufacture certain products – your licensee may need to sub-contract certain manufacturing tasks. The licensee will need to sub-license its sub-contractor the right to use the IP for the manufacturing tasks. Your licensee may be part of a group of companies and want its group companies to assist it. They will need a sub-licence. n If you are keen that only your licensee has the ability to use the IP and you would prefer to retain better control over your IP and be certain who is using it – you may prefer to prevent the ability to sub-license. n 32