As a good story, your license agreement will have a beginning, a center and an end. How this could end is important enough to play a leading role in most agreements. Filed under: License with: termination of contract, breach, contract, intellectual property, licensed, negotiation, rights granted, termination, termination of contract As a rule, termination of cause, even partial termination, is a strong measure. As long as the parties have a mutual economic interest in the agreement, there will be a good reason to work things out without resigning or even threatening to denounce it. In other cases, there may be a “partial” termination. B for example, if the licensee is not the result of a defect in the licensed product and the artist refuses the authorization, but several other licensed products have been successfully approved and put on the market. You can terminate a licensed product, but confirm the contract for the rest. One thing in common for this type of unfortunate termination is that the licensee does not pay a promised advance or chronically pays too late with or not enough royalties. Not paying the money promised as part of an agreement is a “violation” or a violation of the terms of the contract. Serious offences are referred to as “material” offences because they are at the heart of the agreement.
If the artist refused to return promised works of art, it would be a material break. Often, a licensing agreement is expressly authorized to terminate each party in the event of a substantial violation by the other party. The minimum annual licence fee should be the amount the patent holder wishes to make to be satisfied with the contact. In the event that the purchaser is unable to obtain sufficient sales to exceed the minimum annual licence, the licensee must continue to pay the minimum annual licence or the patent holder has the option of terminating the licence. The patent holder could withdraw from the contract if the minimum annual licence is required. The minimum annual licence is a minimal benefit that the patent holder is willing to accept for the maintenance of the licence. Here are two reasons why the patent holder would like to license the patented technology to others, such as Z.B. Cross- License. Other issues listed in the agreement may also be considered as grounds for “immediate” termination. A typical example would be that the manufacturer “assigns” the licence to another producer or producer without your consent.
The last thing you want is for your artwork to be handed over to a complete stranger. If the contract is automatically terminated, if the licensee terminates the contract without your consent, you can license the plant elsewhere and prevent both the licensee and the agent from manufacturing and selling licensed products.