Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports weddings
CostHelper > Small Business  > Licensing Contract

Licensing Contract Cost


How Much Does a Licensing Contract Cost?

 
low costSimple Customized Forms: $10-$50+average costMedium: An Attorney Can Review an Agreement for $100-$500 per Hourhigh costHigh: An Attorney Can Customize a Simple Contract for $300-$1,200+
post Post    

A licensing agreement is usually a contract between the producer and the consumer of a product, granting the consumer the right to use the product under specific conditions -- but it can also be an agreement between the inventor and a manufacturer to produce and distribute a product. A licensing agreement typically applies to intellectual property, such as computer software or a patented invention. A licensing agreement can also be used to set up the production and distribution of trademarked products or copyrighted art (a mass-produced painting or a specific character such as Donald Duck).

Typical costs:

  • Look at existing licensing agreements, such as those included with the software programs on your computer. Don't copy them exactly, but use them to get a sense of what needs to be in an agreement. Many websites post free sample agreements[1] , and companies such as LawDepot.com[2] or Nolo Press provide online forms that can be adapted to your needs for $10-$50 or more, depending on the level of service/advice provided.
  • If you want a licensing agreement tailored to your specific situation, most attorneys charge $100-$300 or more an hour. A simple contract typically takes about 3-4 hours, or $300-$1,200 or more -- which includes an initial draft plus revisions. The more complicated the product or situation, the more time it will take and the more it will cost.
  • Having an attorney review a licensing agreement proposed by the other party could take an hour or more, or anywhere from $100-$500 and up depending on how much work is involved and the attorney's hourly rate.
Related articles: Business Sale Attorney, Non-Disclosure Agreement, Employment Contract

What should be included:
  • A licensing agreement needs to clearly define the scope of the license (so the owner retains the ultimate ownership rights), any money involved (such as a one-time license fee, royalties or monthly payments), the term or length of the agreement, prohibited uses and other details. Lawyers.com provides an overview[3] of licensing agreements.
  • The Yale Library has compiled information about licensing and maintaining collections of digital information, including a standard licensing agreement[4] and a list of general clauses[5] that appear in licensing agreements.
  • FindLaw.com provides an overview of licensing an invention[6] .
Additional costs:
  • If your lawyer negotiates for you, it could take more time and cost more. Remember that your attorney may have to talk with you about what you want, talk with the other party, talk with you again about the other party's proposals, then get back to the other party with your response. A negotiation that might take you about 15 minutes in direct conversation with the other party could take an hour of your attorney's time.
Discounts:
  • Some people cut costs but still get legal guidance by using a free sample agreement to create a document, then have an attorney review it. This works only if you start with a valid sample contract.
Shopping for a licensing contract:
  • In business law, attorneys who handle legal disputes are litigators while those who handle contracts, securities and other business matters are transactional lawyers. An Illinois attorney provides tips for selecting[7] a business lawyer.
  • Licensing agreements come under intellectual property law. Referrals to intellectual property attorneys are available from Lawyers.com[8] and FindLaw.com[9] .
  • Your attorney should provide you with a written fee agreement; be sure you understand what is or is not included, and all potential costs.
post Post    
CostHelper News


10 Quick and Inexpensive Home Makeover Projects To Do While At Home
You may not be able to host the large family gathering for the holidays, but there are still many ways to pick up items curbside to spruce up your indoor space for your everyday enjoyment and to bring a more festive spirit. || Posted December 30 2020


10 Key Ways to Prepare for Extreme Snow
Forecasters are predicting a true nor'easter will hit the eastern and central states with rain, thunderstorms, ice, snow and high winds over the Thanksgiving weekend. It's crucial to plan ahead, before bad weather hits. || Posted November 26 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With a Licensing Contract
 
Subject:  *
Amount Spent:  * total
Service or Attorney: Law Firm: 
Fee Per Hour:   
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.google.com/search?client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial&channel=...
  2.  www.lawdepot.com/searchzoom/?zoom_query=licensing+agreement&zoom_per_page=10&zoom_...
  3.  intellectual-property.lawyers.com/common/content/print_content.php?articleid=1001788&
  4.  liblicense.crl.edu/
  5.  liblicense.crl.edu/
  6.  smallbusiness.findlaw.com/intellectual-property/invention-licensing-versus-manufac...
  7.  www.illinoisbusinessattorney.com/articles/selecting_business_attorney.html
  8.  www.lawyers.com/intellectual-property/find-law-firms-by-location/
  9.  lawyers.findlaw.com/lawyer/practice/Intellectual-Property-Law
More Small Business Topics
Check Out All Costs for Small Business How Much Does an Event Planner Cost? How Much Do Business Cards Cost? How Much Does Office Cleaning Cost?

Search Thousands of Topics on CostHelper.com

 
Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
shoulder mri
Paid: 8000.00
Seriously, 8K for an MRI before all the secret insurance kicks in. I was stuck with a 1200 bill and my insurance is pretty good. This is insane for a 20 minute procedure with no nurse assistance... [more]
-stevej45
MRI Cost
Garage conversion for larger Den. Old den will become Breakfast room
Paid: 21000.00
We removed garage door, put in a 107'X60" window and exterior door. We also framed/sheet rocked where the garage door had been and built a closet... [more]
-USAF Retiree's wife
Garage Conversion Cost
Traffic citation
Paid: 500.00
Flat rate... [more]
-OL
Traffic Ticket Attorney Cost
what should have cost under 100
Paid: 399.67
had my back wheel stuck on someone's driveway and I was pulled out as easily as a tractor could have done... [more]
-Morgan Moonscar
Towing a Car Cost
Why is dental insurance stuck in the 80's?
Paid: 55000.00
In 1986, I started my first full time Big Girl job, which came with options for medical insurance that ranged from "Volkswagon to Cadillac, and everything in between" which was up to me to choose based on my needs, what I could af... [more]
-Frogsoup09
Dental Implants Cost
Sticker shock
Paid: 389.00
I was totally shocked it came to 385 for one pair of glasses! Usually 220 at costco... [more]
-Diana Evans
Eyeglasses Cost