This license agreement template is used in an intercompany transaction between an owner of patents and know-how (i.e. licensor) and a group company which wants to use the patents and know-how for the development, production and commercialization of its products (i.e. licensee).

Licensor has typically been performing the research and development to create the patents and know-how, made the related investments and is the owner of the intangible property. License only makes use of the patents and know-how in return for a royalty. It does not incur any further (development) costs, nor bear any risks related to the intangible property. Licensee will also not obtain any ownership right.

This agreement template is used to state the rights and responsibilities and to substantiate the at arm’s length character of the transaction between a typical licensor and licensee. Common terms in this agreement template inter alia cover the rights and requirements to use the patents and know-how, infringements, royalties, improvements, patent prosecution and maintenance, duration and (consequences of) termination and indemnification.