IP Licensing Agreements · Patents, Trademarks, Copyright, Software · UK, US, EU, India, UAE and More

IP Licensing Agreement Lawyer

Get your IP licence agreement drafted or reviewed by a lawyer who has worked on licensing and technology deals for clients in the UK, US, UAE, Australia, the EU and India. We act for the owner who licenses out or the business that licenses in. Patents, trademarks, copyright, software and know-how. Fixed fee, agreed upfront.

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Share the type of IP (patent, trademark, copyright, software), which side you are on, and the countries involved. We reply with the scope, timeline and fee, usually within two hours. Please do not send trade secrets or source code through this form.

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    Lawyer-Drafted · Bar Council of India
    Cross-Border · UK, US, UAE, EU, Australia, India
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    An IP licence lets someone use your IP. The wording decides how far.

    An IP licensing agreement is a contract in which the owner of intellectual property (the licensor) gives another party (the licensee) permission to use it on stated terms. The owner keeps the ownership. The licensee gets the right to do certain things with the IP: make or sell a patented product, use a brand, reproduce a work, run software. The agreement says which things, where, for how long, for what price, and what happens if either side breaks the deal.

    A licence is not a sale. If the owner is handing over ownership itself, you need an IP assignment agreement instead. If the licensee needs training, documents and technical help to use the technology at all, you are closer to a technology transfer agreement, which we cover on its own page. This page is about the licence itself: the grant, its limits, the money and the legal rules that apply in each country.

    Most licence disputes are not about whether a licence existed. They are about what it covered. A loose grant (“our technology”, “the brand”) leaves both sides sure they were right. A good licence names the IP, the permitted acts, the territory, the term and the exit, and it follows the formalities of each country where it will be used.

    What we license: types of IP

    Each type of IP has its own rules and its own risks.

    Patent licences

    The licensee may make, use, sell or import a patented invention. Key points are field of use, territory, who pays renewal fees, and who deals with infringers. See what a patent is and our patent registration service.

    Trademark and brand licences

    The licensee may use a name, logo or brand on stated goods or services. The owner must keep real control over quality or risks weakening the mark. See trademark registration and trademark watch.

    Copyright and content licences

    Text, images, music, video, characters, designs and training material. The licence has to say which uses are allowed, in which media and places. See copyright registration advisory and how much music can be used without a licence.

    Software and source code

    Object code, source code, updates, escrow and open-source components. See software licensing agreements simplified, SaaS agreement drafting and software agreements under the Indian Copyright Act.

    Know-how and trade secrets

    Unpatented methods, formulas and processes. A licence alone often is not enough, because the licensee needs the documents and help to use it. That is the job of a technology transfer agreement.

    Data, AI models and APIs

    Datasets, models and interfaces carry rights, privacy and output questions. See the AI model licensing template, the API licensing guide and AI vendor contracts.

    When do you need an IP licensing lawyer?

    Common situations on both sides of a licence.

    You want to earn from IP you own

    You license a patent, brand or content to others and want to keep ownership, limit the use and stay paid. We draft the grant and the money terms so you keep control.

    You want to use someone else's IP

    You need a licence to build, sell or brand a product. We check what you are really getting, how long it lasts, and what you can do if the licensor sells, fails or stops supporting it.

    You are launching a brand or franchise

    Brand licences, master franchises and distribution deals all depend on a trademark licence with real quality control. Read our guides on franchise agreements and protecting your brand when franchising in India.

    You resell or white-label a product

    Resellers and white-label partners need a licence to use the software, brand and documents. See the SaaS reseller agreement guide and distribution agreements in India.

    You settle an IP dispute

    A settlement often ends with a licence: the infringer gets limited permission, and the owner gets a fee and control. The licence has to be precise or the dispute returns. See IP cease and desist notices.

    You are raising money or selling the business

    Investors and buyers check which IP the company owns and which it only licenses, and whether the licences survive a sale. See IP due diligence for startups.

    IP licensing agreement services

    What we draft, review and negotiate.

    Licence for the licensor

    You own the IP. We draft the grant, the limits, quality control, payment, reporting and audit terms, and the exit, so you keep ownership and control.

    Licence for the licensee

    You are paying to use someone else's IP. We draft terms that give you a clear right to use it, protection if the licensor fails or sells, and a fair way out.

    Review of the other side's draft

    Send the licence you were given. We mark what to accept, change or refuse. See contract review and revision and contract negotiation.

    Exclusive, sole and non-exclusive licences

    We explain the difference in your deal and draft the grant to match the commercial intent, including carve-outs for the owner's own use.

    Sublicensing, white-label and distribution

    Rules on who else may use the IP: affiliates, resellers, manufacturers and customers, with approval rights and flow-down terms.

    Royalties, minimums and audit

    Royalty bases, rates, minimum payments, reports and audit rights, drafted so the numbers can be checked.

    Cross-border and compliance checks

    Competition law, export controls, local recording and tax. We bring in local counsel where a filing or approval is needed.

    Amendments, renewals and termination

    Changes after the licence starts: new products, new countries, a change of control, a dispute or an end date.

    What a good IP licence covers

    The terms that decide who can do what.

    The licensed IP

    A schedule listing patents, marks, works, software versions or know-how. If it is not listed, expect an argument.

    The grant

    Exclusive, sole or non-exclusive, and the exact acts allowed: make, sell, copy, adapt, display, brand.

    Field of use

    The products, services or markets the licensee may use the IP in, and the ones it may not.

    Territory

    The countries covered, and whether online sales into other countries count. Rules differ for unitary rights such as EU trademarks.

    Term and renewal

    Start date, end date, renewal rights, and what happens when the IP itself expires.

    Sublicensing and control

    Whether the licensee may sublicense, to whom, with whose approval, and what happens to sublicences when the licence ends.

    Quality control

    Standards, samples, approvals and inspection rights, which matter most for trademarks and brands.

    Fees and royalties

    Upfront fee, running royalty, minimums, currency, reports, audit and tax.

    Improvements and new IP

    Who owns changes the licensee makes, and who may use them. See our guide to IP ownership in joint development.

    Enforcement

    Who watches for infringers, who sues, who pays and who keeps what is recovered.

    Warranties and liability

    What the licensor promises about ownership and non-infringement, and the limits. See indemnity clauses and liability caps.

    Termination, insolvency and exit

    Breach, change of control and insolvency triggers, a sell-off period, and what each side must stop doing. See termination of contract.

    Exclusive, sole or non-exclusive: choose the words with care.

    The grant is the heart of a licence, and the three common labels mean different things.

    • Exclusive. Only the licensee may use the IP in the field and territory. In most drafts, the owner is shut out too, unless the licence keeps back a right for its own use.
    • Sole. The licensee and the owner may use it, but nobody else.
    • Non-exclusive. The owner can license the same IP to anyone, including competitors of the licensee.

    People use these words loosely, and some countries and courts read them differently. Define them in the contract instead of relying on the label. Then add the practical limits: field of use, territory, term, sublicensing, and what the owner keeps. An exclusive licence also raises the question of who may sue infringers, which we cover below.

    Exclusive licences often come with performance duties for the licensee: minimum sales, launch dates or marketing spend. Without them, a licensee can sit on the IP, block the market and still hold the licence. If you are the licensor, ask for them. If you are the licensee, make sure they are achievable.

    What goes wrong in IP licence agreements.

    I review and draft licences for clients on both sides, across several countries. The same few problems come up again and again, whichever side I act for.

    1. The licensed IP is described by hope, not by list.

    Terms like “our technology”, “the brand” or “related rights” leave room for a fight about what was included. List the patents, the registered marks and classes, the works, the software versions and the know-how. Add a way to update the list as new IP is created.

    2. The licence outlasts the IP, or the royalty does.

    If a patent expires but the royalty keeps running, the royalty may not be enforceable in some countries. The US Supreme Court reaffirmed in Kimble v. Marvel (2015) that a patent royalty cannot be collected after the patent expires. Tie the term and the payments to the right being licensed, or structure the payments to cover rights that continue, such as know-how or trademarks.

    3. A trademark licence with no real quality control.

    A brand owner who licenses a mark and then does nothing to control the quality of the goods can weaken the mark. US law calls it naked licensing and can treat the mark as abandoned. Canada looks for real control over the character and quality of the goods or services, and India treats uncontrolled licensing as a risk to the mark. Put standards, approvals and inspection rights in the licence, then use them.

    4. Sublicensing and change of control are left open.

    If the licensee can sublicense freely, or the licence passes automatically when the licensee is sold, your IP can end up with a competitor. Decide who may sublicense, who must approve, and what happens on a sale of either party.

    5. Nobody decides who enforces.

    When an infringer appears, the licensee may want to sue and the owner may not, or the other way round. The right to sue depends on the type of licence and on local law. Under the Unified Patent Court Agreement, for example, an exclusive licensee may bring its own action unless the licence says otherwise. Put the answer in the contract.

    6. The contract chooses one law and ignores the local rules.

    A licence may be governed by English or New York law, yet still need to be in a certain form, recorded or translated in the country where the IP is used. A licence that is valid between the parties can still be weak against third parties if it is not recorded. We list the local steps in the draft.

    Royalties and payment: draft so the numbers can be checked.

    There is no standard price structure. Parties use an upfront fee, a running royalty on sales, a minimum annual payment, milestone payments, fixed instalments, or a mix. What matters is that both sides can work out from the contract alone what is owed and when.

    • The base. Define “net sales” or the equivalent: what is deducted, and how bundled products and affiliate sales are treated.
    • Reports and audit. How often the licensee reports, what the report shows, and the owner's right to audit, with a rule on who pays if underpayment is found.
    • Minimums and step-downs. What happens if sales are low, and whether the rate changes at set volumes.
    • Currency and timing. Which currency, which exchange-rate date, and interest on late payment.
    • What the payment is for. Tax treatment can depend on whether a payment is a royalty or a price for a copy of software. In India, for example, the Supreme Court held in the Engineering Analysis case (2021) that payments for standard software copies were not royalty for withholding purposes. We ask a tax adviser to confirm the treatment in your deal.
    • Withholding tax. Royalties paid across borders often face withholding tax, reduced by tax treaties in many cases. The contract should say who bears it, and what proof of payment the licensee gives.

    Competition law and export controls apply to licences too.

    Competition law.

    Some licence terms can restrict competition: territorial limits, exclusivity, price terms, output limits, tying and grant-backs. Each region tests them differently.

    • EU and UK. Both have block exemptions for technology transfer agreements, and both new versions took effect on 1 May 2026. They cover licences of patents, know-how and software copyright, and they give a safe harbour that depends on market share: broadly 20% combined for competitors and 30% each for parties that do not compete, with a three-year grace period if shares rise. The UK Order runs to the end of 2038. Pure trademark licences are generally outside these exemptions unless they support the technology licence, so they are tested under the general rules.
    • United States. The DOJ and FTC assess licence terms case by case under their joint guidelines on licensing intellectual property.
    • Australia. The old exception for IP licensing in the competition law was repealed in 2019, so exclusivity and territory terms are now tested under the general rules, and businesses can seek ACCC authorisation for conduct they are unsure of.
    • India. The Competition Act exempts reasonable conditions needed to protect IP rights. Terms that go beyond protection can still be challenged.
    • Singapore. The Competition Act prohibits agreements that restrict competition, and the competition authority publishes guidance on licensing with market-share safe harbours. We check the current thresholds.

    Export controls and sanctions.

    A licence of controlled technology or software can need an export licence even when nothing is shipped. UK guidance says that explaining controlled technology on a call, showing it in a screen share or letting someone abroad access it in the cloud can each count. The US treats release of controlled technology to a foreign national, even inside the US, as an export to that person's home country. The contract should say who classifies the IP, who applies for any licence, and what happens if approval is refused.

    These are general points, not a classification of your specific IP. We flag them in the draft and, where a filing or approval is needed, work with local counsel.

    Contract law points to check in every country.

    IP statutes decide what you can license. Contract law decides whether your licence works. These are the points we check before a licence is signed, whatever the country.

    • Form and signature. Some countries require a signed writing for certain licences, others for exclusive ones only, and some also expect recording. Details are in the country notes below.
    • Language and translation. A document filed with a registry or used in court may need a translation. In the UAE, for example, recording a licence usually needs an Arabic version.
    • Governing law and mandatory rules. The parties can often choose the law, but rules on registration, competition, consumer or small-business protection and tax can apply regardless.
    • Good faith and implied terms. Civil-law systems such as Germany, the UAE and Quebec place more weight on good faith. A clause that looks one-sided can be read down.
    • Penalties and liquidated damages. English law tests whether a clause protects a legitimate interest. Indian law lets a court award reasonable compensation up to the stated sum. UAE courts can adjust agreed compensation. Draft the clause for the law that will apply.
    • Standard-form terms. Germany reviews standard terms strictly even between businesses, and Australia now penalises unfair terms in standard-form contracts with small businesses. A negotiated licence is safer than a template pushed across the table.
    • Restraint of trade. In India, a restriction on business that applies after the contract ends is generally void. Other countries allow it within limits. Do not rely on a post-term non-compete without checking.
    • Assignment and change of control. Whether the licence passes to a buyer, and whether the other side can end it if control changes.
    • Insolvency. What happens to the licence if either party becomes insolvent. In the US, section 365(n) of the Bankruptcy Code protects licensees of patents, copyrights and trade secrets when the licensor rejects the contract, but not trademark licensees.
    • Stamp duty and tax. Some countries charge stamp duty on the signed agreement. See whether a contract is valid without stamp paper in India.
    • Disputes and enforcement. A court judgment may not travel, but an arbitral award can be enforced in more than 170 countries under the New York Convention. See arbitration vs litigation in cross-border contracts.

    IP licensing by country: IP laws and contract laws to consider.

    One licence rarely fits every country. These notes cover the points we check first. They are a starting guide, not advice on your deal, and laws change. Jump to: EU and Germany · United Kingdom · United States · India · UAE and GCC · Singapore · Australia · Canada.

    European Union and Germany

    IP laws. EU trade marks and registered designs cover the whole Union, while patents are national, European or, since June 2023, unitary patents litigated at the Unified Patent Court. An exclusive licensee of a European or unitary patent may bring its own action at the UPC unless the licence prevents it, and an opt-out by the patent owner changes that position. For an EU trade mark, a licensee's right to sue generally depends on the owner's consent, although an exclusive licensee may sue if the owner does not act after formal notice, unless the licence says otherwise. In Germany, a patent licence generally continues to bind a new owner of the patent.

    Contract law. The parties can generally choose the governing law, but mandatory rules of the place of use still apply. German law reviews standard-form terms strictly even between businesses, so a licence drafted as a standard form can lose clauses that a negotiated one would keep.

    Also check. The revised Technology Transfer Block Exemption Regulation and guidelines apply from 1 May 2026. Tax on royalties differs by member state and treaty.

    See contract lawyers in the EU, contract lawyers in Germany and legal services in the EU.

    United Kingdom

    IP laws. The Patents Act 1977, the Trade Marks Act 1994 and the Copyright, Designs and Patents Act 1988. A trade mark licence is not effective unless it is in writing signed by or on behalf of the licensor, and it binds successors in title unless it says otherwise. An exclusive copyright licence must also be in writing signed by the owner. We recommend recording licences of registered rights at the UK IPO, so a later buyer cannot say they did not know.

    Contract law. English law is a common choice for cross-border licences. Exclusion and limitation clauses in business contracts are tested for reasonableness where they sit in standard terms, and liquidated damages must protect a legitimate interest.

    Also check. The Technology Transfer Block Exemption Order 2026 applies from 1 May 2026. UK export-control guidance covers intangible transfers such as calls and cloud access.

    See contract lawyers in London, how to oppose a trademark in the UK and legal services in the UK.

    United States

    IP laws. The Patent Act, the Lanham Act and the Copyright Act. An exclusive copyright licence is a transfer and needs a signed writing, while a non-exclusive copyright licence can be oral or implied. A patent licence has no general writing rule, but an assignment does. For trademarks, the owner must control quality, or a naked licence can lead to abandonment. A licensee can challenge the validity of the licensed patent without first ending the licence (MedImmune v. Genentech), and patent royalties cannot run past expiry (Kimble v. Marvel).

    Contract law. Contract law is state law. New York and Delaware are common choices, and some states, such as California, limit restraints on business that could affect certain clauses. Section 365(n) of the Bankruptcy Code protects patent, copyright and trade secret licensees if the licensor goes bankrupt and rejects the contract, but it does not cover trademarks, so trademark licensees need drafting protections.

    Also check. University and federally funded inventions can carry extra conditions. US export rules can apply when controlled technology is shared with foreign nationals.

    See contract lawyers in the USA, contract lawyer in California, contract lawyer in Texas, how to register a trademark in the US and legal services in the United States.

    India

    IP laws. Under the Patents Act 1970, a patent licence is not valid unless it is in writing and the agreement is set out in a document that contains all the terms and is duly executed. It should also be recorded with the Patent Office to be effective against third parties. After three years from grant, anyone may ask for a compulsory licence in limited cases. Under the Copyright Act 1957, a licence must be in writing and signed, and if the licence is silent on term and territory, the Act supplies defaults of five years and India, and rights that are not used can lapse. Under the Trade Marks Act 1999, use by a licensee under the owner's control counts as use by the owner, and recording the licensee is advisable. Uncontrolled licensing can put the mark at risk.

    Contract law. The Indian Contract Act 1872 treats most restraints on business after the contract ends as void, so post-term non-competes need care. Stamp duty depends on the state and the type of document. Foreign arbitral awards from New York Convention countries can be enforced.

    Also check. Royalty payments abroad attract withholding tax, which treaties can reduce, and are generally remitted under the automatic route of the foreign exchange rules. The Competition Act exempts reasonable conditions to protect IP rights.

    See contract lawyers in India, trademark assignment in India, how foreign brands protect trademarks in India, contracts for foreign companies in India and legal services in India.

    UAE and the GCC

    IP laws. The UAE has federal laws on industrial property including patents (Federal Law No. 11 of 2021), trademarks (Federal Decree-Law No. 36 of 2021) and copyright (Federal Decree-Law No. 38 of 2021). Patent and trademark licences are generally expected to be in writing and recorded with the Ministry of Economy to bind third parties, and recording usually needs an Arabic version. An unrecorded trademark licence can leave the mark exposed if the owner needs to show use. Copyright does not need registration, but registration helps as evidence.

    Contract law. The UAE Civil Transactions Law places weight on good faith, and courts can adjust agreed compensation. The DIFC and ADGM have their own common-law courts and rules, and many deals choose DIFC or DIAC arbitration. See DIFC or DIAC arbitration clauses.

    Also check. Saudi Arabia expects trademark licences to be in writing and recommends recording them with SAIP, often with a legalised Arabic version. Saudi franchise deals fall under a separate franchise law. Each other Gulf state keeps its own registry, so we confirm the filing step for each deal. Withholding tax rules differ across the Gulf, and the UAE does not generally charge it on royalties, but the licensee's home country may.

    See contract lawyers in Dubai, 7 clauses to check before signing in Dubai and legal services in the UAE.

    Singapore

    IP laws. A trade mark licence is not effective unless it is in writing signed by the grantor, and an exclusive copyright licence must be in writing signed by the owner. Patent licences have no prescribed form, but any licence not performed within a year needs writing under the Civil Law Act. An unrecorded licence can be ineffective against someone who later acquires a conflicting interest without notice, and for patents, recordal within six months of the licence is generally needed to claim certain damages. Courts expect real control over a licensee's use of a trade mark.

    Contract law. English-style common law applies, and Singapore is a popular arbitration seat for deals between Asian and Western parties.

    Also check. The Competition Act prohibits agreements that restrict competition, though a refusal to license is not usually an abuse. Royalties paid abroad may face withholding tax.

    See contract lawyers in Singapore and legal services in Singapore.

    Australia

    IP laws. The Patents Act 1990, the Trade Marks Act 1995 and the Copyright Act 1968. A trade mark licensee's use counts as the owner's use when it is under the owner's control, and copyright assignments and exclusive licences need a signed writing. Licence rights are personal property, so security interests over them can be registered on the Personal Property Securities Register, which matters for financing and insolvency.

    Contract law. The Australian Consumer Law bans unfair terms in standard-form contracts with small businesses, with penalties since late 2023. Check whether your licensee counts as a small business.

    Also check. The IP exception in the competition law was repealed in 2019, so exclusivity, territory and grant-back terms are tested under the general rules. Royalties paid abroad face withholding tax, which treaties often reduce.

    See contract lawyers in Melbourne and legal services in Australia.

    Canada

    IP laws. Under the Trademarks Act, a licensee's use counts as the owner's use only if the owner keeps direct or indirect control over the character and quality of the goods or services. A written licence is not required, but it is the best proof, and courts look for control in practice. Under the Copyright Act, an assignment or exclusive licence must be in writing signed by the owner. We check the recording rules for patents and designs for each deal.

    Contract law. Common law provinces and Quebec's civil law work differently. Quebec places weight on good faith, and its French-language rules can require a French version of a standard-form contract.

    Also check. Withholding tax can apply to royalties paid to non-residents, subject to treaties and exemptions.

    See contract lawyers in Canada and legal services in Canada.

    Other countries

    We also advise on licences with parties in other countries, including Argentina. For each deal we check local formalities, recording, tax and any approval that applies, and bring in local counsel where a filing is needed. See contract lawyers in Argentina and how to register a trademark in Argentina.

    These notes are general information, not advice on your deal, and local law changes. We confirm the current position for each country before the licence is signed.

    Who we draft IP licences for

    Parties on either side of the deal.

    Founders and startups

    Licensing in a core technology, licensing out a product, or protecting the brand while expanding. See startup legal retainer services.

    Software, SaaS and AI companies

    Licensing code, models, data and APIs, with update, escrow and output terms. See technology lawyers for tech startups, SaaS and AI.

    Brand owners and franchisors

    Licensing a brand to partners, licensees or franchisees with quality control that holds up.

    Creators and media businesses

    Licensing content, characters, music and designs across media and territories. See media and entertainment lawyer in India.

    Universities and research bodies

    Licensing research to industry while keeping academic rights and ownership clear.

    Manufacturers and distributors

    Licensing in patents and brands to make and sell products, with territory and supply terms.

    How it works

    1. Share the picture

    Tell us what is being licensed, which side you are on, the countries involved and any draft you already have.

    2. Receive a quote

    We confirm the scope, timeline and a fixed fee in writing.

    3. Review the draft

    You get a clear draft with the key choices marked, and one round of discussion on the points that matter.

    4. Negotiate and finalise

    We handle changes with the other side, then prepare the signing version with the schedules for the IP, fees and local steps.

    5. Keep it current

    Come back when you add a product, a country or a partner, or when a law changes. A legal retainer covers ongoing needs.

    Why businesses choose us for IP licensing

    • A decade of cross-border work. The lawyer who drafts your licence has worked on licensing and technology deals for clients in the UK, US, UAE, Australia, the EU and India.
    • Local rules in the draft. We build form, recording, language and tax steps into the licence instead of leaving them for later.
    • One side per deal. We act for the licensor or the licensee in a deal, never for both.
    • Clear choices. You see where the draft is neutral, where it leans your way, and what the other side is likely to push back on.
    • Fixed fee. You see the fee in writing before we start.
    • Fully online. We work by email, video and WhatsApp with clients in every time zone.

    Common questions

    What is an IP licensing agreement?
    An IP licensing agreement is a contract in which the owner of intellectual property gives another party permission to use it on agreed terms, while keeping ownership. It can cover patents, trademarks, copyright, designs, software and know-how, and it sets out the permitted uses, territory, term, fees and exit.
    What is the difference between a licence and an assignment?
    A licence gives permission to use IP and the owner keeps ownership. An assignment transfers ownership itself. A licence can be limited by field, territory and time, and it can end. An assignment is usually permanent. See our guide to the IP assignment agreement.
    What is the difference between exclusive, sole and non-exclusive licences?
    An exclusive licence lets only the licensee use the IP in the agreed field and territory, usually shutting out the owner as well. A sole licence lets the licensee and the owner use it but nobody else. A non-exclusive licence lets the owner license the same IP to others. Define each term in the contract, because the labels are used loosely.
    Does an IP licence have to be in writing?
    It depends on the country and the type of IP. The UK, Singapore and India require writing for trade mark or patent licences in many cases, and several countries require a signed writing for exclusive copyright licences. Even where writing is optional, a written licence is far easier to prove. Always put it in writing.
    Do IP licences need to be registered?
    Sometimes. Recording is often not needed for the licence to work between the parties, but it can protect the licensee against later buyers and help the owner show use of a mark. Some countries, such as India for patents and the UAE for patents and trademarks, expect recording to bind third parties. We list the local steps in the draft.
    How are royalties set?
    There is no fixed rule. Parties use upfront fees, running royalties on net sales, minimum payments, milestones or a mix. What matters is a clear definition of the base, regular reports, audit rights, and a rule on currency and tax. Cross-border royalties often face withholding tax, so the contract should say who bears it.
    Can the licensee sublicense the IP?
    Only if the licence allows it. Many licences allow sublicensing to affiliates or manufacturers with the owner's approval, and say what happens to sublicences when the main licence ends. Leaving it open can put your IP in the hands of a competitor.
    What happens to the licence if the licensor goes bankrupt?
    It depends on the country and the type of IP. In the US, section 365(n) of the Bankruptcy Code lets licensees of patents, copyrights and trade secrets keep their rights if the licensor rejects the contract, but it does not cover trademarks. Elsewhere, insolvency rules differ, so the contract should include protections such as escrow, step-in rights or a right to terminate.
    Why does a trademark licence need quality control?
    The mark must keep telling buyers that goods or services come from, or are approved by, the owner. If the owner licenses it and does not control quality, the mark can lose its meaning. US law treats this as naked licensing and can find the mark abandoned. Canada and India also treat uncontrolled licensing as a risk, so the licence should set standards and give inspection rights.
    Which country’s law should govern an IP licence?
    There is no single answer. We look at where the IP will be used, where the parties and payments are, which court or arbitration seat is practical to enforce, and which local rules apply regardless of the choice. Many cross-border licences choose a neutral law and an arbitration seat, then add local steps such as recording.
    Can a licence run for longer than the patent?
    The licence can, but a royalty for the period after the patent expires may not be enforceable in some countries. In the US, the Supreme Court reaffirmed in 2015 that patent royalties cannot be collected after expiry. Structure the payments around rights that continue, such as know-how or trademarks, or end the royalty at expiry.
    How much does IP licence drafting cost?
    We quote a fixed fee after understanding the scope. A one-country licence of one IP right costs less than a multi-country licence with sublicensing, quality control and royalty audits. You see the fee in writing before we start.

    Related services and guides

    When the licensee also needs know-how and technical help.

    Moving ownership instead of permission.

    Terms for licensing software.

    Licensing interfaces and developer access.

    A brand licence with a business system.

    Register the mark before you license it.

    Protect the invention before you license it.

    Evidence of ownership for content you license.

    Confidentiality before licence talks.

    Our main contract drafting service.

    Prakhar Rai

    Prakhar Rai | Lawyer and Founder

    Who will advise you.

    Prakhar Rai founded My Legal Pal and leads its technology and cross-border work. He is enrolled with the Bar Council of India, is an alumnus of the National Law School of India University (NLSIU), Bangalore, and holds a Master of Business Laws. Over the past decade he has drafted licensing and technology agreements for clients in the UK, US, UAE, Australia, the EU and India.

    This page is general information and is not legal advice. IP, contract, competition, tax and export-control rules differ by country and change often. A lawyer-client relationship starts only when we confirm an engagement in writing. Reviewed by Prakhar Rai (Bar Council of India). Last updated: November 2026.

    Need an IP licensing agreement?

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