Intra Group License Agreement

September 24th, 2021

An intellectual property license agreement includes commercial and contractual terms between an intellectual property owner and an intellectual property user or licensee. The agreement establishes “rules” for the licensing of intellectual property and generally contains a large number of provisions relating to the use, exploitation, modification and resale or sublicensing of intellectual property. The use, assignment, use and development of intellectual property is at the heart of most companies and enterprises in the world, given that it is the value created within the company on the basis of the leverage effect of the intellectual property it creates. There are certain ways to monetize intellectual property directly, often by license (use without ownership) or by assignment (transfer of ownership). While many companies use IP licensing agreements for internal company agreements, the use of one party`s IP by another can also be an important part of most trade agreements, as it sets out the rules and expectations for use. If the operating company is a 100% subsidiary of the trademark owner, there will probably be enough financial control. [4] However, if the entity implemented by the operator is not a 100% subsidiary of the trademark owner, the trademark owner must effectively control the use of the trademark by the exporting entity. There must be more than just a license agreement between them. For example, many corporate structures include an “IP holding company” that owns the company`s intellectual property (including trademarks) and then licenses that intellectual property to an “operational entity”. The operating company acts using the trademark and assumes commercial risk and liability vis-à-vis creditors. The IP holding company does not.

This protects valuable intellectual property. As a general rule, an intercompanyed transfer and licensing agreement provides that all intellectual property rights developed by an operating company (e.g. B a trademark, a patent, a work protected by copyright (e.g.B. the software) and the know-how are always automatically transferred to the group company in which the intellectual property rights and know-how of the group companies (usually the holding company or a separate IP company) are located when a so-called “return” license confers on the operating company a right to use those rights and, where applicable, other intellectual property rights. In the case of an intercompany transfer and license agreement, a royalty may also be agreed for the license among the intellectual property rights. Thus, the performance per company can be optimally coordinated within a group.

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