Licensing Overview

A license is a legal agreement that allows someone other than the inventor to use an idea or invention, usually for a set period of time. In return, the inventor is paid royalties, which can be a lump sum or ongoing payments. It usually costs less to license an idea than to market or manufacture the product or technique yourself.

You will need some kind of trademark or patent protection to successfully license your product. Disputes often arise regarding the timeframe, scope, or royalties owed under a licensing agreement. Lawyers who specialize in licenses, trademarks, and patents undergo extra training, making it advisable to talk with an intellectual property lawyer before signing a licensing agreement or pursuing legal action.