All About The Legal Torts

What Are Licensing Agreements?

Nov 9

When you purchase or borrow an item, you are usually granted use of that item for a limited time. For example, you can use it at work during business hours, but not after work so it cannot be used for any illegal activities. If you would like to keep using the item longer, you will need to return it and get another one! This is called licensing.

Licensing is a way to promote creativity and productivity. Companies hire professionals (like photographers or graphic designers) to create logos, products, and advertisements because they know how important this work is. Having a license means having permission to use their work so that you can put your own spin on it.

There are two main types of licenses: non-transferable and transferrable. Non-transferable licenses do not allow you to give the item to someone else; only you can use it. With these, you have to return the item if you want to continue using it past its licensed period. Transferable licenses let you share the item with someone else, as long as you notify the copyright holder first.

This article will talk about what kind of agreements people make when buying or borrowing something, and why some are better than others. But before we dive in, here’s more information about copyrights and licensing.

Examples of licensing agreements

what are licensing agreements

There are many ways to license your creative work. Some companies will ask you to agree to a general form contract first, before any additional contracts can be signed. These types of contracts are called agreement to offer (Ato) forms.

From there, they will usually create an exclusive copyright license or use agreement. This is typically a limited use of your work that does not require you as the artist for it to remain yours. A common example of this is when someone uses your art in a game with a royalty free usage limit.

This type of agreement is also called a “work for hire” clause because it says that what person using your artwork pays you is dependent upon them having permission to use your work under their own copyright. For instance, if a company wants to put your picture in a movie, they must have your written consent before using it.

There are several more complex versions of these agreements as well. For instance, some artists demand a right of approval to anything digital they want to publish or share online. This is called a moral rights agreement and comes with specific guidelines depending on whether the image contains people, things, or events.

Rights granted to the licensor

The rights given to the licensor are usually either use of the licensed product for marketing or advertising purposes, use in printed materials or advertisements, or using the copyrighted work as a cover design or logo for their own products.

Most often, creative professionals need permission to re-use material that is already published under someone else’s copyright. This is important because it allows them to give credit to the original creator while promoting their product or service!

Other times, they may need permission to make changes to the material – perhaps altering colors, adding content, or creating new illustrations or designs with it.

Lastly, some publishers will ask for extra permissions like reprinting the material or publishing it online so people can access it more easily.

Rights granted to the licensee

what are licensing agreements

A licensing agreement gives your business or organization (the licensor) the right to use an existing product, technology, or service (the license).

A typical example of this is when you buy books. You do not need to read those books, but you can use their illustrations and concepts while you create your own work. This way you are able to take advantage of someone else’s creativity and knowledge without paying them for it.

By giving yourself a license, you give yourself more freedom to express yourself creatively. Technology comes and goes, so buying a license allows you to continue working with what has worked in the past!

There are many types of licenses that vary depending on the type of product being licensed, how the license will be used, and who will be using it.

Term of the agreement

what are licensing agreements

A licensing agreement is not a contract that lasts forever. When you enter into a contract with someone, they normally have rights to use your design or creative work for a certain amount of time. For example, if I designed a logo, I would own it but Kelly can use it as long as she designs something new using my styles or tweaks them slightly.

After the period of usage expires, you may be able to keep the design, but only under two conditions:

  • If you purchased the license, then you retain ownership of the material
  • You give the other party permission to use it by signing another contract that gives them access

The second condition depends on the first one being met! If you purchase the license, you are keeping it, so you do not need to worry about protecting it from misuse.

However, even though you no longer possess the copyright, that does not mean people cannot copy and paste your artwork onto their websites or use parts of it. This is called plagiarism and is an extremely serious offense. It is best to protect your work early on in order to avoid issues later.

Who writes the agreement?

Even though it may seem like someone else is writing your contract, you can still take control over when it’s signed and what terms are included in it. You can even write your own agreements to be more streamlined and efficient!

All major business relationships include an understanding of each other’s obligations under the contract as well as an understanding of who will assume responsibility if something happens. This way no one is left hanging or confused about their role under the contract, which could potentially damage trust or prevent things from running smoothly in the future.

By having a standard form licensing agreement that covers all areas of the relationship, you reduce chances for confusion and conflict. By clearly defining roles and responsibilities, you also promote accountability and consistency across parties.

It’s important to have clear definitions for everything including how much money will be exchanged, at what times and events the contract will expire, and what would happen in case one party doesn’t fulfill its end of the bargain.

Legal disclaimers: As part of our legal disclaimer, we require you to agree to this agreement before granting access to any Licensed Materials. If there are any questions as to whether you accept these terms and conditions, do not use the Software.

This agreement was last updated on _________________.

Who reviews the agreement?

what are licensing agreements

It’s very important to know who will look over your licensing agreements. Most companies that offer licenses have third-party vendors that they use for this. These vendors are usually professional proofreaders or legal consultants that help them make sure their license terms match what is actually allowed under law.

It’s also important to know how long the vendor will be reviewing your contract. Some people get paid per word, so the longer you keep them busy, the more money you earn!

The length of time should be enough time for someone with no experience in copyright laws to fully understand the contents of the contract. This could take anywhere from one hour to several hours, depending on how much detail there is in the contract.

General rules about licensors: don’t agree to pay too little for a license, and don’t accept a limited use license without reading it first! A limited use license is when the licensee can only use the product for a certain number of times or a set amount of money. This is illegal because it would give the owner of the product exclusive rights which cannot be given away unless the creator releases them first.

Who is responsible for the validity of the agreement?


It’s really important to note that while both parties are agreeing to use someone else's copyright, you as the buyer do not need to check if the copyright is valid or not.

You can be completely sure that the content in the contract is authentic and legally binding because the other party has verified their own copyrighted material using the same license. This process is called verifiability.

Verification means confirming that the work is under the appropriate license and that your use complies with it. For example, when using creative commons materials, The Free Culture Movement has a page dedicated to explaining how to verify this.

There is an even more advanced form of verification used by some creators which is known as Copyright Notice. This occurs when the creator includes small pieces of their original art, lyrics, or writing in the product being licensed.

Copyright notice verifications occur when potential buyers look into the source files and notes of the artist to make sure they have permission to use them.

How can I get a license?

what are licensing agreements

Finding out what licenses you already have is an important step in growing your business. You may not know it, but there are ways to access this information for free! The best way to use licensing as a tool to grow your business is by incorporating it into your marketing strategy.

Most large businesses will purchase at least one type of software or technology that requires a proprietary license. These types of applications include Photoshop, Microsoft Office products, and other popular apps like Adobe Creative Cloud which includes both Photoshop and Illustrator.

By having these licensed apps, you are giving credit to the company that created them which helps their reputation and growth. It also means they will continue to make money off of these apps, increasing their revenue.

For example, if you are looking to launch your own photography business, then buying a cheap camera bag would not be good since you need a warranty. A professional quality camera bag cost around $200-400 depending on how big it is. Buying such a bag with no proof of life expectancy is bad investment.

You should look up reviews and see if anyone was able to use the product without problems. Make sure there aren’t too many comments saying the product does not work because most companies will leave that feedback section open so people can read everything.