Patent And Know How License Agreement

This license is suitable for both product patents and process patents (it can cover both in the same document). The granting of a secret know-how licence may entail certain risks associated with its potential and unwanted disclosure to third parties. For this reason, a patent licensing and know-how agreement should address privacy and confidentiality issues in depth, in order to define as precisely as possible how the taker can use and disclose the expertise conceded. The licensee, his employees and interested third parties (for example) should be taxed. B, potential subcontractors) have confidentiality obligations at least as strict in terms of scope and strength as those introduced by the licensee to protect its trade secret. Finally, special attention should be paid to the duration of the issuance of intellectual property rights, since the duration of the licence must not exceed the maximum period of the right (for example. B 20 years for patents). In the case of a patent license and know-how, this means that the parties must make a clear distinction between the patent license (which cannot last beyond the expiry date of the patent) and the know-how licence (which the parties wish to maintain after the patent expires). The license issued under this document may be exclusive or non-exclusive and allows the licensee to work within the relevant patent rights and to use technical information (or “know-how”). In such cases, it may be worthwhile to enter into a “patent and know-how license” instead of a simple patent license, so that the licensee has access not only to his invention, but also to the relevant technical know-how. This will allow the licensee to take full advantage of the invention and understand it. The payment under this licence takes the form of royalties payable at pre-defined intervals.

The licensee is also required to keep detailed royalty records. Of course, the granting of a licence of know-how only makes sense to the extent that that know-how has been kept secret, that is, there is an economic value and the taker must have access to that knowledge which would otherwise not be known or easily accessible.