Sole License

What is a sole license?

A sole license is a legal contract in which the owner of an intellectual property right (called the licensor) authorises another party (called the licensee) to exercise one or more of the rights that belong to the licensor. A sole license means the licensee is the only licensee in that territory or for that group of customers. However, the licensor can still compete with the licensee. This is different from an exclusive license, where the licensor themselves cannot compete with the licensee.

Sole licenses and exclusive licences

Sole licences are less risky than exclusive licences for the licensor as they are not totally dependent on the licensee. However, the royalties with a sole license are usually slightly lower. For example, a sole license granted by the holder of a patent or a copyright can give the license holder a limited right to reproduce, sell, or distribute the work.

The sole licensing agreement should be drafted carefully and cover several aspects, including:

How the fees and royalties are calculated and when they are paid
What the licensee is allowed to do
The territories the agreement covers
How long the agreement lasts and who can terminate it

If you would like to obtain legal advice on intellectual property and licenses then Contact Law can put you in touch with a local specialist intellectual property solicitor free of charge. So if you have any questions or would like our help in finding local sole license solicitors please call us at 0800 1777 162 or complete the web-form above.