With a copyright license agreement, a company or an individual can license intellectual property which in turn shall bring immediate positive effect on the said company’s finances, revenues, and decreasing costs.

However, the company that is willing to get the license in property shall ensure that the licensor does own a valid title to the desired items. So, it is advisable to obtain a basic understanding of copyright agreement.

What Is a Copyright License Agreement?

A company or an individual can gain exclusive copyright, trademarks, titles, and all other related rights to a product, copy, name, and several other things.

The licensor has agreed to grant a license authorizing in accordance with the terms and conditions of this agreement. The license seeker shall provide the consent to the agreement by signing it.

This agreement allows the license seeker to use the licensed work or product but not gain ownership of it.

This way the company shall gain rights to sell or manufacture the products easily and effectively. The license provider also benefits from the marketing activities carried out by the new license holder.

Moreover, it consists of all the detailed information like the material used, its incorporation, and publication regarding the product or service being patented. This legal document will be a way to protect the copyright holder’s right if ever the work gets replicated.

Who Needs a Copyright License Agreement?

Usually, a copyright agreement is used in the following circumstances:

  • For using another company or person’s copyrighted products or services, a party needs to put that arrangement in writing.
  • For allowing other companies or individuals to use the owner’s product or services, a copyright agreement needs to form as proof of the deal.

In fact, copyright license is used to allow a party to use a certain property that is currently owned by another party. So, a license seeker wishes to acquire this product or service for commercial or personal use.

The copyright license agreement helps the owner to protect and control his work from being used by anyone or anywhere. It gives the power to get to call the shots about who uses the works and how.

It could be allowing the artwork to reprint, distribute, promote, use for a specified period, or more. In turn the user shall pay a royalty or money to the owner. However, the rights of the copyright license are temporary and limited to the stated period in the agreement.

Don't confuse the copyright license agreement with a copyright assignment, which transfers the intellectual property’s ownership permanently.

What Is Included in the Copyright License Agreement?

Both parties shall abide by the following terms:

  • Grant of License: The owner of the intellectual property grants an exclusive or non-exclusive license to the license seeker. The ownership of the property and provide the rights to products, materials, or other works mentioned in the agreement.
  • Rights and Obligations: The proprietary rights of the license holder shall be mentioned here to avoid any future misunderstanding. It should be precise and verified by both the parties before providing their signature.
  • Payment: The amount of the payment or royalty shall be calculated and the due dates till which the payment shall be completed are also mentioned.
  • Modifications: With the owner’s prior written approval, the user shall not modify or change the property in any manner. The license holder shall not utilize or do anything unlawful or prohibited by the terms of the agreement.
  • Transfer of Rights: Both the parties are restricted to assign its interest in this agreement to any third party until there is no written consent for the same is provided.
  • Amendment: Both parties need to sign a different document for any kind of amendment or modification in the existing agreement.
  • Termination: In case of unprecedented circumstances and the need to terminate the agreement arises, the party shall provide 30 days written notice to the other party.
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It is crucial to include all the necessary clauses in the agreement. However, the agreement could be customized in accordance with the copyrighted work or product’s needs. The parties shall use sample copyright license agreement for reference to prepare their own.

You can check out CocoSign for a more relevant and up-to-date copyright license agreement template for free. Our expert team is always here to help you with your problems. You could get more detailed information about other agreements on our website.


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