Non-exclusive licensing involves a contractual agreement between the licensor and the licensee. The key components typically include:
1. Scope of Use: Specifies the extent to which the licensee can use the IP, including geographical limitations and application sectors. 2. Duration: Defines the time period for which the license is granted. 3. Royalties and Fees: Outlines the financial terms, such as upfront fees, royalty rates, and payment schedules. 4. Rights and Obligations: Details the responsibilities of both parties, including quality control measures and reporting requirements.