Knowing what a licensor exactly is, is vital if you believe you are going to become one or if you are a licensee interacting with a potential licensor. By knowing what exactly a licensor is, you provide yourself with the best knowledge possible that will allow you to establish the best working relationship between licensor vs licensee. That licensee vs licensor relationship will be helped no end by using a licensing agreement created from one of Contractbook's templates.

What is a licensor?

A quick licensor definition would be when a person or company gives permission to another entity to make, do or own something for which they can grant permission. A licensor literally gives another person or company a license to do something. It is like giving them authorization, but it will often be with a remunerative aspect to it. A licensing agreement will arise between a licensor and a licensee, delineating how much money is to be exchanged in return for being granted a license. 

How does a licensor work?

Given that a license is an agreement between a licensee and licensor, it is up to the two parties to outline the agreement's details. Doing so will ensure that it is a mutually beneficial arrangement that does not unfairly penalize one party or the other. For a licensing agreement to be helpful for a licensor, the duration that the license is granted must be broached, or else the payment exchange for a license must be large enough to compensate the licensor for granting a license indefinitely. 

Advantages of a licensor 

The main advantage of a licensor is that a licensor can benefit financially from granting their licenses and providing authorization to use their property or assets. Being able to grant permission is key if the licensor wants to assert and retain some level of control over their assets. If those assets include brand names and trademarks, controlling how those assets are used is critical. It will help allow for a level of quality control so that the assets can remain useful. For, should the quality of the assets licensed out dip, the assets may cease to be something for which people want a license. The profitability of the license, therefore could reduce. 

Finally, another advantage on both sides is that regulation often surrounds granting licenses. That protects the licensee and licensor alike. 

Contractbook and licensor

Contractbook can help a licensor immediately thanks to the vast array of contract templates on offer. A licensor does not have to go through a costly process of hiring a lawyer to create a specific licensing agreement for them. Instead, they can make use of the licensing agreement, in addition to the vast wealth of other information available through the company's website. 

They can have confidence that any licensing agreement created on the back of one of our templates is legally sound. It will thus protect them in the future should any disputes arise from the licensee. In short, using Contractbook helps keep costs lower while ensuring the quality of the legal documentation created is high. Plus, the software we use allows for collaboration in a more streamlined process, resulting in a far better end contract. 

Looking for
No items found.
Product walkthrough

See what centralizing contracts really looks liken

Explore product