• License Agreement Arrangements in Germany
  • June 12, 2013 | Author: Michael Rainer
  • Law Firm: GRP Rainer LLP - Berlin Office
  • A license agreement usually refers to a contract with pecuniary interest valid indefinitely with provisions on use transfer service made applicable for a certain period of time.

    GRP Rainer Attorneys and Tax Accountants in Cologne, Berlin, Bonn, Düsseldorf, Essen, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Bremen, Nuremberg and London www.grprainer.com/en explain: In general, a license agreement is structured as a mutual contract which means that each of the contracting parties is required to fulfill and complete certain services as stipulated by the contract agreement. Thus, such a contract deals with pecuniary interests. The remuneration is, however, no overriding contractual requirement especially as the license agreement is constituted as an agreement sui generis which means that it is not expressly regulated by law; therefore, it is also possible to conclude a license agreement even without provisions for exchange of payment. In principle, a license agreement does not require any particular legal form which means that it can be concluded without a standard form contract.

    The contracting parties of a license agreement are referred to as the licensor and licensee. The main obligation of the licensor of an effective, concluded license agreement is to grant the right of use of the respective brand at an agreed scope to the licensee. The licensee is also responsible for brand maintenance to the extent stipulated by the contract agreement. In addition, more (minor) obligations and requirements may be agreed.

    In the context of the license agreement, the licensee is also obligated to demonstrate to the licensor to what extent the licensee has made use of the license and the resulting amount of license fees owed. Other (minor) obligations and requirements may be agreed by the contracting parties.

    A non-challenge clause is frequently included in a license agreement which excludes the possibility for the licensee to take measures against the covered contents of the license. Therefore, there may be no cancellation request or cancellation claim allowed according to trade mark law.

    The actual form of a license agreement can be difficult to structure due to a lack of specific legal regulations for each individual, particular case. It is important to be prepared for any eventuality. An experienced attorney can help set up an appropriate license agreement that takes all circumstances of an individual case into account to ensure comprehensive protection.