IP-01 · 01
Intellectual Property License Agreements: Scope, Exclusivity, Royalties, and Termination
A license is four separate decisions wearing one sentence. This brief takes apart the grant clause, then follows the money through royalty definitions, audits, and the end of the term.
- The grant clause sets four independent levers — field of use, territory, term, and exclusivity — and each should be drafted separately.
- Exclusivity means whatever the contract says; a licensor that fails to exclude itself has granted a sole license, not an exclusive one.
- Royalty disputes almost always turn on the definition of net sales and on deductions, not on the headline percentage rate.