Due to the legal basis they must cover, some licensing agreements are quite long and complex. But most of these agreements cover the same fundamental points. This includes the scope of the agreement, including exclusivity or territorial restrictions; financial aspects, including required advances, royalties and the calculation of royalties; guarantees for minimum sales; Schedules with marketing dates, contract duration and renewal options; the rights of the lessor to monitoring and quality control, including the procedures to be followed; the minimum stocks to be retained; and returns and allowances. Another question to be determined is whether the rights are completely exclusive or co-exclusive. A contract is co-exclusive if the licensor establishes exclusive rights to the property, with the exception of its own right to use the property at its own discretion. For example, a software patent owner does not need to obtain permission to use that software from the party to whom he has granted exclusive rights. These are usually the most complex types of licensing agreements, as everything involves obtaining and maintaining a patent. An important point in the examination of an exclusive license agreement is the parameters of what exclusive rights entail. It may be that the rights are exclusive only for a certain geographical area or that, in the case of rights to a manufacturing process or software, there are certain industries in which the licensed product cannot be used. Another common element of licensing agreements includes which party retains control of copyrights, patents or trademarks. Many contracts also include a provision on territorial rights or on the person who manages distribution in different parts of the country or the world. In addition to the various clauses inserted in the agreements to protect the licensor, some licensees may add their own requirements. For example, they may insist on a guarantee that the licensor owns the rights to the property, or they may include a clause prohibiting the licensor from directly competing with the licensed property in certain markets.


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