PRODUCT LICENSING: SALES AND MARKETING

In general terms, the process governing the authority to manufacture, sell, market, and distribute the product concepts and/or any associated patents, including any products produced in the status of “Patents Pending”; the trademarks and copyrights, (all commonly referred to as “Intellectual Property”) is governed by the law of Licensing.

“Licensing” may be loosely defined for our purposes as a process by which one party (the “Licensee”) is granted authority by the owner (the “Licensor”) to utilize the owner’s proprietary product concept(s) including any improvements as may be later developed regardless of whether developed by the Licensor or Licensee, and whereby the Licensee is authorized to manufacture, sell, market and distribute, or otherwise utilize, the owner’s product concepts or Intellectual Properties so produced for sale, and whereby the Licensee is obligated to pay fees (commonly referred to as “Royalties”) to the Licensor.

The arrangement between the Licensor and the Licensee is set forth in a formal “Licensing Agreement” where all of the terms in the relationship are formally defined and set forth. The Licensing Agreement is thus a legal document defining the rights and obligations of the Licensor and the Licensee.