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License agreements

Dr Eszter Telek
IPR-Insights Consulting

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Author’s rights
 copyright protection of the work - means authors’
rights:
 moral rights
 economic rights
 the author may never transfer his moral rights
 assignment of economic rights:
 varies by countries
 authorization to use the work:
 assignment of rights
 permission to use the work - license

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

License (licensing agreement)


 License is a specific agreement, in which the author
authorizes the use of his work and basically the user is
obliged to pay a remuneration (license fee) therefore.

 BUT irrespective of remuneration the usage of the


work has to be licensed by the author every time

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Agreement „types”
 „pure” license agreements
 mixed agreements
 development agreement
 service agreement
 etc.

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Obligatory subject of a license

 direct subject: detailed rights to use the work


 indirect subject: exact definition of the work
 so it is a basic requirement that the license
agreement exactly defines the work and the
right which is granted by the author to use it

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Essential issues
 Freedom of contract: the parties may freely agree on the contents
of the licensing agreement

 If the parties conclude an agreement, they have to agree on all


essential issues

 In the case of a license agreement these issues are:


 work
 parties
 license
 extent of the license
 direct subject of the license
 remuneration

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Extent of the license

 Exclusive right to use - only by an express


stipulation
 Scope of use: the authorization of use may be
limited to
 a territory
 a period of time
 manner of use
 extent of use

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Territory
 Worldwide license
 Region
 Country
 City, town
 Building
 Specific computer
 Etc.

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Terms
 Undefined term
 perpetual license
 perpetual license by divided payment
 Defined term
 subscription
 time limited test, evaluation license etc.

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Manner of use
 Reproduction: to copy the work
 Distribution: To issue copies of the work to the public
 Alteration, translation: to make an adaptation of the work
 Performance: To perform, show or play the work in public
 Broadcasting: To broadcast the work or include it in a cable program
 Etc.

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Extent of use
 Exclusive
 Non-exclusive
 Expressed quantity: identified number of
works
 Pieces and measurment type (user, computer,
access, transaction etc.)

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

License transfer, sub-license


 The author’s expressed consent is necessary to
 transfer the license
 sub-license the work

 The author’s expressed consent is not necessary


 in the case of legal succession

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Form of contract
 Concluded
 in written form
 in oral form
 by implied conduct

 License agreements are drawn up in written form typically


 it is the condition of effectiveness in some countries

HOWEVER

 Due to the current business conditions new licenses concluded by oral


consent or by real activity – see FPP software licenses for example

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Characteristics of licenses in IT sector

 digital environment
 new types of works, new usage manners
 lack of written form
 application of general terms and
conditions
 online agreements – „click licenses”
 shrinkwrap licenses
 clickwrap licenses
 browsewrap licenses

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Shrinkwrap license

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Shrinkwrap license

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Clickwrap license

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Browsewrap license

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

„I accept” issue
 Dilbert to Dogbert: "I didn't read all of the
shrinkwrap license on my new software
until after I opened it. Apparently I agreed
to spend the rest of my life as a towel boy
in Bill Gates' new mansion.”
 Acceptance of unread provisions
 Unfair provisions
 Consumer protection - EU

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

EU consumer protection
 Directive 93/13/EEC unfair terms in
consumer contracts
 Member States shall lay down that unfair terms used in a contract
concluded with a consumer by a seller or supplier shall, not be
binding on the consumer
 Typical unfair terms in Annex
 Member States shall take the necessary measures

 Directive 97/7/EC on the protection of


consumers in respect of distance contracts
 Prior information
 Written confirmation of information
 Right of withdrawal

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU
License agreements

Thank you for your kind attention!

IPR-INSIGHTS CONSULTING AND RESEARCH


1116 BUDAPEST, KONDORFA U. 10.  TEL.: (+36-1) 204-7730  FAX: (+36-1) 204-7731
E-MAIL: INFO@IPR-INSIGHTS.HU  WWW.IPR-INSIGHTS.HU

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