Another major problem is the portion of the definition that limits the grant of rights for performers and other elements "to the full extent that licensor
shall have such right.
In such a case, even if purchasers of the product might assume that the trademark owner was the manufacturer, the licensor
does not "sell or distribute as its own a product manufactured by another.
By doing so, the licensor
should have more control over selection process for any replacement licensee, or otherwise pressure the debtor--licensee to reject the agreement in a timely manner.
If the licensee fails to make a success of the product, the licensor
could find themselves locked into an agreement that provides smaller royalty payments than they had expected.
Through the use of grant-back licenses, the licensor
can use improvements the licensee makes to the technology.
If the user plans to make modifications, this should be discussed with the licensor
to reach agreement about how this will affect the warranty.
Under copyright law, an exclusive licensee acquires property rights in the licensed copyright and may freely transfer those rights, while the licensor
cannot transfer the same rights to a third patty.
Therefore, at any given point in time, or over time, fixed sum royalty arrangements may prove to be economically unfair to either the licensor
or the licensee.
Give the licensor
the right to engage in regular quality control and review activities, including:
Any holder of patents essential to optical formats used in Blu-ray Disc products is invited to submit patents for evaluation and join the licensing program as a new licensor
This will enable Licensees to see the spacial placement of design elements on product design or packaging for a visual reference of what the Licensor
is looking for.
importer to a foreign licensor
who is also the seller/exporter of the goods (or even if the licensor
is merely related to the foreign seller/exporter), the value of the royalty or intangible right may be included in the duty basis of the imported goods.