What is patent licensing?

Patent licensing is a type of legal agreement between the holder of a patent and another party that permits the other party to use the patent holder’s invention or technology for a specific purpose. The agreement identifies the license terms including the scope of rights, obligations, and conditions under which the licensee can use the patent. Generally, the holder of the patent (the “licensor”) has the right to grant a license to someone else for the use of the patented technology (the “licensee”). For the license to be valid in North Carolina, it must be in writing and include an explicit grant of rights from the licensor to the licensee. The licensee typically pays the licensor a fee or royalty for the rights that are granted under the licensing agreement. However, there are other types of agreements where the licensor does not require a monetary payment but rather receives something else of value in exchange for granting a license. This value can be in the form of services such as research and development or an agreement to buy licenses for other products developed by the licensor. The licensor also has the right to terminate the license agreement if the licensee fails to comply with its terms. Furthermore, the licensor can enforce its rights under the patent and pursue legal action against any parties that infringe upon the patent’s protected rights. Patent licensing is an important tool for the protection of intellectual property rights and can help inventors and businesses benefit from their inventions while still protecting their rights.

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