One business (the licensor) may give another business (the licensee) permission to sell or distribute their products. In exchange for the licensor giving another business this authority, they typically receive proceeds from the sale of the goods. Regardless of how revenue is paid, business license agreements must follow South Carolina contract law and include some key provisions.
The experienced business license lawyers at Beth Santilli Law, LLC can help you revise and draft business license agreements in support of your best interests. Contact us today to request a consultation.
Key Terms of a Business License Agreement
Also known as distribution agreements, business license agreements should include:
– Length of the agreement period: This may seem like a very basic provision, but it is still crucial that license agreements contain a clause outlining the length of time the two businesses will work together.
– Exclusivity: An exclusivity clause outlines whether the licensee has exclusive rights to sell the licensor’s products in a certain market. Agreements that do include an exclusivity cause often also contain a type of quid pro quo in which the licensee will provide something of equal value to the licensor. These agreements are similar to non-compete clauses in other types of business agreements.
– Performance metrics: Licensors often have certain performance requirements for licensees. When they do, these must be included in the contract.
– Marketing responsibilities: In business relationships that involve one party selling the goods of another, the party responsible for marketing the product can quickly become confusing. License agreements should always outline which business is responsible for marketing the product to consumers.
A business license lawyer from Beth Santilli Law, LLC can help ensure that your license agreement contains all important provisions.
Get Legal Help Today
When you enter into any business agreement, there is a lot on the line—and this holds true for business license agreements as well. At Beth Santilli Law, LLC, our business license attorneys can assist you with drafting a thorough contract that will help avoid disputes down the road. Get in touch today to request a consultation.