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Using Software Licensing Agreements

The term “ intellectual property ” is used to describe a variety of different things. In general, intellectual property (IP) is some form of intangible property that originated or was created by an individual’s mind. Common examples include artwork, music, computer software, literary pieces, inventions and designs. Because IP can be quite valuable, it is important to take steps to protect it if you allow other parties to have access to it. One way to protect your IP is to grant a license or contractual right for the other party to use it, but permits you to maintain control over the IP.

The party that holds the rights to IP is called the licensor and the party seeking permission to use or access the IP is the licensee. In exchange for access to the licensed IP, the licensee typically pays money to the licensor.

Before you can grant a license to another party, however, you must protect your exclusive property rights. The safest means for protecting your IP is to register for all rights that are applicable in your case, such as:

  • Patents – primarily used to protect inventions
  • Copyrights – used to safeguard original works that are expressed in a tangible form
  • Trademarks – a trademark indicates to other parties that the words, symbols or other identifying marks are being used to identify goods, which distinguishes them from others

It is important to work with an IP attorney to protect and manage your rights. The registration process with the U.S. Patent and Trademark Office or the U.S. Copyright Office can be rigorous and confusing. However, once you have secured your rights to the intellectual property, you can start licensing its use to other parties and making money. Be sure to read our next blog titled “Tips for Drafting an Effective Licensing Agreement.”

If you need assistance registering your IP or creating a licensing agreement, we can help. Contact the legal team at The Swenson Law Firm to schedule an initial consultation.

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