The main terms of a patent licensing contract generally include the following aspects:
1, the content of patented technology and the implementation of patents;
2. The type of license contract;
3. The validity period and geographical scope of the license contract;
4, technical guidance and technical service terms;
5. Warranties and guarantee clauses for patent defects;
6. Patent license fee and payment method;
7, the liability for breach of contract and the calculation method of liquidated damages or compensation for losses.
In addition to the above, other matters that both parties consider necessary can be agreed upon. For example: force majeure clause; Attribution of patented technology improvement achievements; The solution of the dispute; Interpretation of key nouns and terms.
It is difficult to determine royalties. Generally speaking, the amount can be considered according to the following factors:
(1) The difficulty and cost of patentee's research and development of patented technology. Generally speaking, patents with great research and development difficulties and high development costs have relatively high royalties.
(2) the size of the benefits that the licensee can obtain after using the patent. If the income is large, the use fee is high.
(3) Type and duration of patent license. Generally speaking, the use fee of exclusive license is relatively high, the use fee of ordinary license is relatively low, and cross-licensing sometimes does not pay the other party's use fee.
(4) the way in which the licensee pays the royalties. According to the provisions of the contract law, the payment method of patent license fee can be one-time payment or one-time payment, or royalty payment or royalty payment for entry fee. In practice, the combination of entry fee and royalty is a common payment method.