Grantee agrees that, for the duration of the agreement, all contained real estate will be treated confidentially and would possess proprietary personal information in the same consideration as grantee. The licence percentage is a combination of the percentage of royalties, the gross costs of the product, the volume of the product sold and the contractual period. An intelligent licensee will consider all of this at the beginning of the search for products to manufacture before they can make a huge investment in a product for sale. There will be no fixed royalty rate applicable to all forms of product, but the 25% rule is the most commonly used. This rule provides that you can generally receive about 25 percent of the gains made when selling your product. When profits go up, so does your income. Any party may request the termination of this contract at any time during this agreement, by written notification. PandaTip: Since contract and licensing law varies from jurisdiction to jurisdiction, it is important to define where this contract will be judged in the event of litigation. In the interest of this licensing agreement, net profits are considered to be the total profits grantee made during the term of this agreement through the use of Grantor`s ownership since then, after the payment of the following taxes: as such, it decides to enter into an agreement with HeadSoundz, a manufacturer specializing in the manufacture and sale of audio devices. To do this, PhoneMe must grant rights to its brand, trade name and brand on HeadSoundz, so that HeadSoundz can use PhoneMe`s unique branding on headphones, packaging and marketing. Both parties enter into a licensing agreement.
Both sign a licensing agreement confirming that HeadSoundz PhoneMe will pay a royalty rate of 5% of net sales on a quarterly basis, in exchange for the use of the PhoneMe brand, trade name and brand for a period of 3 years. The agreement allows, initially, the contracting parties to provide important credentials, including their primary names and addresses. If one of the parties is a business, it can also indicate the representative who will sign the agreement on behalf of the company. The agreement then describes the intellectual property that is the subject of the agreement in as much detail as possible, including when and by whom Grantor originally obtained property rights from a public authority such as the United States Patent and Trademark Office.