Licensing and Distribution Agreements

Licensing and Distribution Agreements

When conducting business, an entity can establish amongst other things, an agency, licensing or distribution relationship with another party, depending on the parties’ specific requirements. An agency relationship is an arrangement where the agent carries out certain obligations on behalf of the principal. In terms of an agency agreement, the principal will be bound by the actions of the agent, as if such acts were those of the principal personally.

Licence agreements defined

A licence agreement is an agreement in terms of which the licensor provides the licensee with permission to exercise rights which the licensor possesses, for example rights in copyright or a trade mark. As consideration for such licence, the licensee usually pays a royalty to the Licensor. A licence agreement also regulates the rights and obligations of the parties pertaining to the licence.

Distribution agreements defined

A distribution agreement is an agreement in terms of which the manufacturer grants the distributor the rights to distribute the manufacturer’s products.

Adams & Adams can assist with the drafting and reviewing of any of these agreements.


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