Things every client should understand about intellectual property agreements

Marketing / distribution agreements

In a nutshell, the marketing / distribution agreement is one in which one party (the Licensor) grants permission to another party (the Licensee) to market the Licensed Technology (always a defined term in the agreement), which may or may not be patented, for a given consideration, subject to certain enumerated terms and conditions.

In some cases, the product being marketed will be promoted under the name and trademarks of the Licensor; in others, it will be promoted under the name and trademarks of the Licensee. In either case, the Licensee operates as an additional conduit for the distribution of product; as such, and as a component of the Licensor’s distribution matrix, careful coordination with the Licensor’s other distribution channels is required.