This is a comprehensive agreement for the outright sale of limited rights in a piece of intellectual property such as an invention or software.
The nature of the product is not important to the document. It could be a stand-alone physical device, a component for another product, or something that improves an existing product.
The buyer purchases the all of the rights he needs so that he can use the IP as required.
The document covers:
- all intellectual property rights in every aspect of the work, for example: designs, copyright, software and patents
- derived products
- optional support by the licensor – with a separate licence to use any support systems
- the sub-license of third party IP rights
- third party infringement and mutual legal protection
This document might be used, for example:
- to sell a computer game to a game publisher. The publisher buys the rights to the story and characters behind the game so that he can market the game as his own, but the developer keeps back the rights to the code that allow those characters to move on-screen in a certain way so that he can use that code in a future game.
- a engineering firm sells a navigation system to a defence systems supplier, but retains the rights regarding the finishing process of a particular component.