Advice for Businesses Using License Agreement Templates

A license agreement template is a legal agreement that gives permission for someone to use another party’s intellectual property. Because intellectual property is under copyright protection laws, you must have a licensing agreement to use someone else’s image, idea or wording. This guide will help you use this type of agreement properly.

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PDF Template - license agreement template

Below we’ll cover:


  • Elements of a License Agreement Template
  • Important Clauses
  • What Happens if You Fail to Use a Proper Licensing Agreement
  • Additional Resources
  • Signing Your Licensing Agreement Template

Elements of a License Agreement Template

Some of the elements you will include in a simple license agreement template are:

  • Licensor and Licensee Information – This is the name of the parties who are agreeing to the licensing arrangement.
  • Intellectual Property Description This will describe the copyright, trademark, patent, or another type of intellectual property the agreement pertains to.
  • Fees and Royalties – If money is exchanging hands, the amount the licensee is paying goes here.
  • Purpose – The reason behind the agreement is outlined in this section.
  • Field of Use – This is the geographic area where the licensee can use the licensing agreement.
  • Signature – The signature section will have a spot of the licensee, licensor, and a witness to sign the document. It will also have a section for contact information for these parties. With Nitro Sign, you can easily send the documents to get the appropriate signatures.

Important Clauses

To make a licensing agreement template official and put the proper protections in place for both the licensee and the licensor, needs some clauses. The ones you will want to include are:

  • Payment Clause – Here you indicate where payments are sent, how they are accepted, and what the late charge will be.
  • Records Clause – Licensees are required to keep records of their use of the licensed material, ad this clause will dictate how those records get kept and reported.
  • Duration and Termination – Licensing agreements are rarely never-ending, and these sections state the duration of the agreement as well as additional terms that would allow for termination.
  • Representations and Warranties – This is a vital section that outlines any warranties the licensor provides for in the agreement, such as the agreement to not knowingly grant other rights to other licensees that are in conflict with the agreement.
  • Indemnification Clause – This protects the licensor from any liability resulting from claims against the licensee in regard to the use of the licensed property. In other words, If the licensee gets into trouble, the licensor cannot be held liable for the issue.
  • Entire Agreement Clause This indicates that the agreement supersedes all existing agreements relating to intellectual property.

These are just some of the most important clauses. Always read the template carefully to ensure your rights are properly protected.

What Happens if You Fail to Use a Proper License Agreement

Without a licensing agreement in place, a licensee who is using intellectual property could get into legal trouble if the owner of that property decides to press charges. The licensor loses time and money by having to pursue legal action against the licensee who is not operating under the terms of an agreement. Both the party using the intellectual property and the party who owns it will spend time, effort, and mental energy to work through this problem. The licensee can also end up in a legal battle for infringement of copyright or other protections. If an agreement about licensing is on the table, it’s always better to use a licensing agreement template.

Signing Your License Agreement Template

Once all the terms of a license agreement template are complete, you must sign it. Both the licensee and the licensor need to sign it and include their contact information. It also should have a witness signature. If you are making this agreement remotely, use Nitro Sign to securely send and sign your agreement to collect the proper signatures and make it all official and legal.

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