Search thousands of topics on CostHelper.com

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


Forgotten Expenses In a Home Addition Budget
Items like construction costs, permit fees or debris removal aren't the only expenses to consider when calculating the total costs of a home remodeling project. || Posted August 5 2013


10 Most Popular Cosmetic Procedures Before the Holidays
With reunions and other get-togethers scheduled during the holiday season, most people want to look their best at this time of year. For some, that means filling in those wrinkles with a bit of botox, or having a nip and tuck down here and there. || Posted November 23 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=s&hl=...
  2.  www.lawdepot.com/searchzoom/?zoom_query=licensing+agreement&zoom_per_page=10&zoom_and=0
  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-manufacturin...
  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
Windshield replacement
Paid: 560.00
... [more]
-Christine Brown
Windshield Replacement and Repair Cost
Outer CV Boots
Paid: 700.00
Both outer boots. Quoted about $350 each. Wish I had the time to take it to shop around like esyriac did... [more]
-DangerousCurveAhead
Replacing a CV Boot Cost
Cost of Annual Mammograms
Paid: 772.00
I Had a routine mammogram then had to have the right side repeated(needed a better reading). Insurance said it was not covered in our policy. Firelands Regional Medical charged me $241.00 for the routine mamo, then charged me $256... [more]
-MonaL
Mammogram Cost
DETAILED MY 2006 FORD FREESTYLE
Paid: 150.00
IS $ 150 TO MUCH TO PAY TO A PERSON TO DETAIL A 2006 FORD FREESTYLE IT WASNT WAX IT CLEAN BUT I THOUGHT DETAILING WOULD BE BETTER THAN IT REALLY LOOKS... [more]
-SHEILA DELOACH
Auto Detailing Cost
Expensive puppy shots
Paid: 91.00
2nd set expected to be 150.00 and 3rd 132... [more]
-Michael Gray
Puppy Shots Cost
I’m looking for a church, reception, and pastor to do our wedding at in or around Danville, Va
Paid: 200.00
I want a church to get married at we have never been married either of us and we don’t have a lot of money to work with but we still want to have a nice small wedding and reception in our area Danville or chatham... [more]
-Maurisa
Wedding Chapel or Site Cost