Fiducia TogetherLicensing your product or brand
Letting somebody else use your IP for a fee.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A licence permits another party to use intellectual property — a patent, trade mark, design or software — on defined terms, for a royalty or fee.
Why it matters
It generates revenue without the cost of manufacturing or distributing, and it can reach markets you cannot serve directly.
What it looks like in practice
Terms to define: exclusivity, territory, field of use, duration, quality control, minimum royalties and termination.\n\nQuality control is essential for a trade mark licence — an unpoliced licence can undermine the mark itself.
What to watch out for
Exclusive licences with no minimum performance. An exclusive licensee who does nothing blocks the territory for the term.
Where to get proper advice
An IP solicitor. Royalty rates vary enormously by sector and are worth benchmarking.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.