The Licence – the Basics
Section 5
TOP TIP
It is possible to include the ability to sub-license, but only
on the basis that your licensee first notifies you and obtains
your approval. You may also want to approve the terms of
the sub-licence which is being offered. This way, at least you have the
opportunity to 'vet' the party who will also be using your IP and you
are kept fully in the loop.
If you do decide that your licensee can appoint its own licensees of your
IP, you should ensure that the licensee remains liable to account for all
payments, whether they accrue on the licensee's or its sub-licensees'
commercialisation of your IP. You should make clear on what terms your
licensee can sub-license – these would usually be terms which are identical
to your licence (called the head licence) except for the right to sub-license.
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