Agreement of License to Publish on Royalty Basis

    What is Agreement of License to Publish on Royalty Basis?

    A licensing agreement on royalty basis is a written contract between two parties, in which a property owner permits another party to use that property under a specific set of parameters on royalty basis. A licensing agreement or license agreement typically involves a licensor and a licensee.

    Why is it required?

    Licensing agreements delineate the terms under which one party may use property owned by another party. While the properties in question can include a myriad of items, including real estate holdings and personal possessions, licensing agreements are most often used for intellectual property, such as patents and trademarks, as well as copyrights for written materials and visual art.

    What should it cover?


    In addition to detailing all parties involved, licensing agreements specify in granular detail, how licensed parties may use properties, including the following parameters:

    • The geographical regions within which the property may be utilized.

    • The time period parties are allotted to use the property.

    • The exclusivity or non-exclusivity of a given arrangement.

    • Scaling terms, such that new royalty fees will be incurred if the property is reused a certain number of times. For example, a book publisher may enter a licensing agreement with another party to use a piece of artwork on the hardcover editions of a book, but not on the covers of subsequent paperback issuances. The publisher may also be restricted from using the artistic image in certain advertising campaigns.

    Documents Required

    In order to enter into this agreement the copyright owner must have the property registered in his name and must have the relevant documents evidencing his title over the property in question. Other than this, the identity proofs of the parties can also be scrutinized before entering into the agreement.


    No set procedure is applicable in the making of an agreement to licence. Once the agreement has been drafted by a lawyer, it should be specifically and carefully read by both the parties to the agreement. Any necessary changes required to be made shall be carried out and once the agreement is finalised, it shall be signed by both the parties along with the requisite witnesses. The agreement is then legally binding when it is printed on judicial stamp paper/e-stamp paper and signed by both the parties. The stamp paper value depends on the particular State in which it is executed. Each party should thereafter keep a signed copy of the Agreement.

    How can a lawyer help?

    While drafting agreements, it is important to know as to what terminology should be used while drafting the same as a small ambiguity in the terms can also jeopardize the claim of the parties. This is why it is crucial to have a documentation lawyer to assist you with the drafting an agreement. Being an expert in the area of documentation law, a documentation lawyer knows the nitty-gritty of the legal procedures and the requirements involved in drafting an agreement. With the experience attained in the field, he/she can guide you with the right advice while entering into an agreement and can make sure that such mistakes are eliminated that cannot be resolved even through further legal procedures.

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