+91 9627064810 +91 9990503885 sales@diligencecertification.com

End-to-end certification and regulatory compliance for Indian and global markets.

View All Services
Get your products BIS certified to ensure compliance with Indian standards and build customer trust. We handle end-to-end certification, testing, and documentation for manufacturers,importers, and exporters.
Our expert guidance and support help you stay compliant and gain a competitive edge in the market — your satisfaction is our commitment
Our team simplifies the application process and provides tailored support to meet your EPR compliance requirements effectively.
Our expert guidance and complete support help you achieve LMPC Certification smoothly, giving your business a competitive edge and long-term credibility.
Our comprehensive support ensures smooth WPC compliance and gives your business a competitive edge while prioritizing your long-term success.
Global Approvals help your products meet international regulatory standards, allowing smooth entry into multiple global markets.
Our expert guidance and end-to-end support help you achieve TEC certification smoothly while gaining a competitive edge in the market.
With 25+ years of experience, we help you meet ARAI compliance smoothly and gain a competitive edge in the automotive market.
Struggling to secure BEE Certification in India? Our specialists make the process easy and help you boost customer trust through verified energy ratings.
ISO Certification guarantees your business meets global standards for quality, safety and efficiency.
Flying without proper registration or clearance can lead to fines, drone seizure, and legal action, making regulatory compliance essential for safe and lawful drone operations.
Our expert guidance ensures your steel imports meet Ministry of Steel and BIS standards, helping you stay compliant and streamline the approval process.
How to apply for BIS Certification in 5 Mins!

Apart from product certification, BIS is responsible for framing Indian Standards, conducting laboratory testing, and ensuring consumer protection.

Download Document Checklist
USEFUL LINKS
How to apply for ISI Certification in 5 Mins!

Some items must be certified before they get released mysteriously made for select goods like cables, switches, cement, gas cylinders, etc.

Download Document Checklist
USEFUL LINKS
CRS Certification- A Complete Guide for Electronic Product Compliance in India

It ensures electronic products conform to Indian Standards (IS).Covers 70+ products including laptops, phones, adapters, TVs, and batteries.

Download Document Checklist
USEFUL LINKS
Hallmarking Certification- Everything You Must Know About Gold and Silver Purity Compliance

Hallmarking Certification is mandatory in India for gold and silver jewellery.The BIS 916 Hallmark confirms 22K gold purity.Silver Hallmarking is compulsory for certain grades like BIS 925.

Download Document Checklist
USEFUL LINKS
FMCS Mark Certification- A Guide for Global Brands Selling in India

FMCS Mark Certification is a BIS-led approval process that enables foreign manufacturers to sell regulated products in the Indian market.

Download Document Checklist
USEFUL LINKS
ECO Mark Certification : Your Complete Guide to Global Eco-Labeling Standards

It helps manufacturers build trust and create a compliance framework. It also markets to eco-conscious consumers.This guide will detail eligibility, provide information on the application procedure, and outline benefits of certification to ISO 14024.

Download Document Checklist
USEFUL LINKS
Finding Laboratory Accreditation Tough? We Make It Simple!

It is governed by NABL under the Quality Council of India (QCI).Accreditation enhances trust among regulators, industries, and global partners.

Download Document Checklist
USEFUL LINKS
    We’re working on adding resources for the BIS certification service. Please check back soon.
World Manufacturer Identity (WMI) Registration

The World Manufacturer Identity (WMI) is a globally recognized code used to identify vehicle manufacturers. WMI registration ensures traceability, compliance, and global brand recognition for automotive makers.

Download Document Checklist
USEFUL LINKS
BIS Scheme X Certification - Process, Documentation and Fees Structure- Updated Guide 2025-2026

Stay ahead of regulatory changes with BIS Scheme X Certification. Now extended to September 1, 2026, under the omnibus technical regulation order 2024. Get complete certification support from Diligence Certification.

Download Document Checklist
USEFUL LINKS
Get your CDSCO registration

Get full assistance for CDSCO registration, medical device import licenses, and cosmetic import licenses with Diligence Certifications. Our expert guidance and comprehensive support ensure your compliance, helping you gain a competitive edge in the market. Your satisfaction is our commitment!

Download Document Checklist
USEFUL LINKS
Drug License

Diligence Certifications is a top-tier name in drug licensing and provides topmost service and knowledge support to all sizes of pharmaceutical companies. Our seasoned team understands the global regulations and has seen several success stories.

Download Document Checklist
USEFUL LINKS
Give Your Products cosmetic license

Having trouble securing Cosmetic License certification in India? Let our ISI certification experts assist you in achieving it and boosting your credibility!

Download Document Checklist
USEFUL LINKS
Give Your Medical device Registration

Get expert guidance on Medical Device Registration in India. Learn CDSCO approval process, documents, fees & compliance for manufacturers and importers.

Download Document Checklist
USEFUL LINKS
Obtain Your CPCB Certification Effortlessly………

Secure your CPCB Certification with ease and align your business with environmental regulations and sustainable practices. Our expert team streamlines the application process, offering tailored guidance to meet your unique EPR compliance requirements.

Download Document Checklist
USEFUL LINKS
Get battery waste Compliance Certification for Your Products

Need assistance in Battery Waste Certification? Our experts guide you through every step to ensure smooth and compliant processing.

Download Document Checklist
USEFUL LINKS
    We’re working on adding resources for the CPCB certification service. Please check back soon.
EPR Registration for E-Waste Certification

E-waste has become one of the most serious problems of the modern world, as technology is changing very fast. Discarded electronics items such as smartphones and refrigerators contain very toxic elements hazardous to human health and the environment if not treated properly.

Download Document Checklist
USEFUL LINKS
    We’re working on adding resources for the CPCB certification service. Please check back soon.
EPR for Tyre Waste – Tyre Waste Management Guide

Tyre wastage is an increasing global problem. It threatens to engulf the world in a sea of rubber with disastrous consequences for the environment and human health.

Download Document Checklist
USEFUL LINKS
    We’re working on adding resources for the CPCB certification service. Please check back soon.
Get Plastic waste Compliance Certification for Your Products

Diligence Certifications help businesses go a long way in environmental compliance matters through their management of plastic waste compliance. It rallies your commitment to reducing environmental impacts, increasing your recycling, driving circular economies and, hence, building credibility with consumers as citizens of a wider world contending against plastic pollution with angels and regulators.

Download Document Checklist
USEFUL LINKS
USEFUL LINKS
    We’re working on adding resources for the CPCB certification service. Please check back soon.
Get No Objection Certificate for Your Business

The No-Objection Certificate has special relevance for a business; from needing it while applying for a loan, selling property, or for an application to pursue higher education, there are multiple situations where one has to face the need for an NOC.

Download Document Checklist
USEFUL LINKS
Get Your LMPC Certification!

Get Full Assistance for Model Approval for Indian W&M Instruments and Importer Registration for Weight and Measurement Instruments with Diligence Certifications. We prioritize your success by providing expert guidance and comprehensive support for all your LMPC Certification needs, helping you gain a competitive edge in the market. Your satisfaction is our commitment, and we work tirelessly to ensure it, now and in the future.

Download Document Checklist
USEFUL LINKS
USEFUL LINKS
    We’re working on adding resources for the LMPC service. Please check back soon.
Get Your LMPC Import License Certification!

Diligence Certifications offers provision of LMPC Import License Certification under Legal Metrology Packaged Commodities rules with respect to process of importation of goods into India for compliance. Our proficiency ensures that your labeling and packaging for products meet the requirements for easy clearance of goods through customs. It certifies approval from the regulators, having legal backing and gaining confidence of consumers and authorities.

Download Document Checklist
USEFUL LINKS
    We’re working on adding resources for the LMPC service. Please check back soon.
Legal Metrology Certification for Weights and Measures

The legal metrology certification is gaining importance in today’s ever-changing context of business with emphasis on fair trade and consumer protection. There is a fresh perspective on maintaining the true measurement and weighing-related activities on account of the fact that with almost every passing day, market growth and transaction complications are assuming greater magnitude.

Download Document Checklist
USEFUL LINKS
    We’re working on adding resources for the LMPC service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the LMPC service. Please check back soon.
Get Your WPC Approval!

Get Full Assistance for Non-Network License, Network License, and Equipment Type Approval with Diligence Certifications. We prioritize your success by providing expert guidance and comprehensive support for all your WPC Approval needs, helping you gain a competitive edge in the market. Your satisfaction is our commitment, and we work tirelessly to ensure it, now and in the future.

Download Document Checklist
USEFUL LINKS
    We’re working on adding resources for the WPC Approval service. Please check back soon.
Get Your WPC Import License Certification!

The Diligence Certifications grant a fast track to the acquisition of WPC Import License, making the imports of communication devices 100% compliant with WPC Certification. Based on our experience and expertise, we ready you for the licensing processes in such a way that your product conforms with all technical standards and is safely usable within India. The certification would guarantee acceptance by regulators, therefore cultivating such trust with the authorities and end users.

Download Document Checklist
USEFUL LINKS
USEFUL LINKS
    We’re working on adding resources for the WPC Approval service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the WPC Approval service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the Global Approvals service. Please check back soon.
USEFUL LINKS
USEFUL LINKS
    We’re working on adding resources for the ARAI service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the BEE service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the ISO Certification service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the ISO Certification service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the ISO Certification service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the ISO Certification service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the ISO Certification service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the ISO Certification service. Please check back soon.
USEFUL LINKS
    We’re working on adding resources for the ISO Certification service. Please check back soon.
USEFUL LINKS
USEFUL LINKS

End-to-end certification and regulatory compliance for Indian and global markets.

Register your business with ease and stay compliant with Indian regulations. We take care of end-to-end documentation, approvals, and legal formalities for startups, MSMEs, and enterprises.
USEFULL LINKS
USEFULL LINKS
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
USEFULL LINKS
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
USEFULL LINKS
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.
USEFULL LINKS
    We’re working on adding resources for the Business Registration service. Please check back soon.

License Agreement: Understanding Rights, Responsibilities, and Terms

  • A license agreement allows a licensor to give the licensee permission to use the intellectual property without assigning ownership of the property.
  • License types include exclusive, non-exclusive, sole, and compulsory licenses.
  • It Includes the parties involved, the license rights granted, any fees/royalties due, quality control measures, and the protection of the IP license.
  • The licensor earns revenue and expands their market, while the licensee gains efficiencies and access to the market.
  •  License drafting involves careful negotiation and documentation of the license agreement terms. 
  • Trends in licensing include digital licenses for virtual experiences, smart contracts, and subscription-based models.
WhatsApp
Call Now : +91-9990503885
Years Of Experience
0 +
Expert Employees
0 +
Trusted Brands
0 +
Projects done
0 +

What is a license Agreement?

Types of License Agreement

Essential elements

Benefits

Process

What reliefs are available under RERA?

Why Choose Diligence Certifications?

What is a License Agreement?

A license agreements is a legal document that allows one party (the licensor) to give another party (the licensee) permission to utilize particular rights, intellectual property, or money-related assets, subject to certain terms or conditions.  A license does not transfer ownership; it permits usage that is carefully controlled by the licensor for a predetermined time, while the licensor retains all ownership rights. 

In business terms, license allow companies and organizations to monetize their intellectual property, engage in businesses in a new market, and increase cash flow, all without relinquishing ownership of a companies most valuable assets and rights.  The range of license can span simple applications like software companies licensing their products, to more complex applications like franchisors providing rights for other companies to operate businesses in a specific geographical area or market.  License represent the foundation of modern business partnerships.  

Legal Foundation of License Agreements

Indian Legal Framework

The legal framework for license in India consists of legislation that allows protection and enforcement of license in an adequate manner:

  • Indian Contract Act of 1872 – Sets out the validity requirements for forming a contract
  • Indian Easement Act of 1882 – Identifies license for the purposes of Section 52
  • Copyright Act of 1957 – Encompasses all licenses on created works
  • Patents Act of 1970 – Covers licensing arrangements involving patents
  • Trade Marks Act of 1999 – Governs the licensing of trademarks and brands
  • Information Technology Act of 2000 – Covers computer software and digital licenses

International Considerations

If cross-border, license agreements must comply with:

  • treaties initiated as part of the World Intellectual Property Organization (WIPO)
  • bilateral investment protection agreements
  • foreign exchange management regulations
  • international tax treaties

Types of License Agreements

Exclusive License Agreement 

An exclusive license offers the licensee exclusivity over the licensed property for a defined scope. The licensor is unable to license the same rights or the same property to any other individual(s) throughout the duration of the agreement.

Key Benefits:

  • Single licensee retains complete market control
  • Higher fees for licensing due to exclusivity 
  • Licensee has the full responsibility for development of the market
  • Improved protection against competition 

Non-Exclusive License Agreement 

A non-exclusive license allows the licensor to provide similar rights to multiple licensees, which provides the possibility to leverage coverage of the market and the revenue opportunity.

Key Benefits:

  • Multiple licensees can operate in the same market
  • Lower fees for licensing 
  • Licensees will share development costs within the market
  • Greater revenue opportunity and diversification for licensor

Sole License Agreement

A sole license agreement creates a hybrid arrangement where only the licensee receives commercial rights, but the licensor retains personal usage rights.

Compulsory License Agreement

Government-mandated compulsory license agreements allow third parties to use patented inventions under specific circumstances, typically for public interest or anti-monopoly reasons.

Essential Elements of License Agreements

1. Parties Identification

Clearly identify all parties with complete legal details:

  • Full legal names and business registration numbers
  • Registered addresses and contact information
  • Authorized representatives and signing authority
  • Corporate structure and ownership details

2. Grant Clause

The grant clause defines the specific rights being licensed:

  • Scope of permitted use and restrictions
  • Geographical boundaries and market limitations
  • Duration and renewal terms
  • Sublicensing rights and restrictions

3. Financial Terms and Royalties

Comprehensive financial arrangements include:

  • License fees (upfront payments)
  • Royalty rates (percentage or fixed amounts)
  • Minimum guaranteed payments
  • Payment schedules and currency specifications
  • Audit rights and accounting procedures

4. Quality Control Provisions

Maintain brand integrity through:

  • Product quality standards and specifications
  • Regular inspection and audit rights
  • Corrective action procedures
  • Brand guideline compliance requirements

5. Intellectual Property Protection

Robust IP protection includes:

  • Patent, trademark, and copyright acknowledgment
  • Confidentiality and trade secret protection
  • Infringement notification procedures
  • Defense and indemnification obligations

Industry-Specific License Agreements

Software License Agreements

Software license agreements govern the use of computer programs, applications, and digital platforms:

Types Include:

  • End User License Agreement (EULA) for consumer software
  • Enterprise license agreements for business software
  • Open source licenses for collaborative development
  • SaaS agreements for cloud-based services

Franchise License Agreements

Franchise agreements combine licensing with comprehensive business format replication:

  • Brand usage rights and trademark licensing
  • Operational system and process licensing
  • Training and ongoing support provisions
  • Territory protection and expansion rights

Entertainment and Media Licensing

Copyright license agreements for creative content:

  • Music licensing for commercial use
  • Film and television content licensing
  • Book and publishing rights licensing
  • Digital content and streaming rights

Technology Transfer Agreements

Patent license agreements for innovation commercialization:

  • Manufacturing and production rights
  • Research and development collaboration
  • Technology improvement and modification rights
  • Cross-licensing arrangements

Benefits of License Agreements

For Licensors (Rights Holders)

Revenue Generation:

  • Immediate license fee income
  • Ongoing royalty payments
  • Market expansion without direct investment
  • Risk sharing with licensees

Strategic Advantages:

  • Faster market penetration
  • Brand recognition enhancement
  • Competitive advantage maintenance
  • Portfolio diversification opportunities

For Licensees (Rights Users)

Cost Efficiency:

  • Reduced research and development expenses
  • Lower market entry barriers
  • Proven business model access
  • Established customer base leverage

Risk Mitigation:

  • Tested product or service concepts
  • Brand recognition benefits
  • Technical support and expertise access
  • Marketing and promotional assistance

License Agreement Drafting Process

Step 1: Initial Evaluation

  • Pre-Agreement Considerations:
  • Verification of intellectual property ownership
  • Assessment of market value and potential
  • Assessment of licensee capacity and credibility
  • Assessment of competitive landscape and opportunities

Step 2: Negotiation of Terms

  • Important Issues for Negotiation:
  • Economic terms and payment structures
  • Exclusivity and territorial rights
  • Quality control and enforcement procedures
  • Termination rights and post-agreement duties

Step 3: Legal Documentation

  • Professional Drafting Considerations:
  • Clear legal language and defined terms
  • Compliance with lawful process
  • Risk allocation and limited liability
  • Dispute resolution process

Step 4: Implementation and Management

  • On-Going Relationship Management:
  • Ongoing monitoring and auditing procedures
  • Performance assessment and optimization
  • Renewal negotiation and amendments
  • Relationship management and communication

Common License Agreement Challenges

Lack of Protection for Intellectual Property

Various businesses fail to properly file and protect their IP before licensing arrangements are entered into, making it difficult for the licensee or the brand owner to enforce or protect their IP without potential losses.

Ambiguous Contracting Terms

When contracts include unclear language relating to usage rights, available territories, or performance criteria, problems can arise resulting in disputes or lost relationships.

Inadequate Partner

Without evaluating a licensee as a potential partner, license relationships may be entered into with the wrong or incapable licensee, damaging the equity of the brand or clearly defining its market position.

Unrealistic Financial Assumptions

Over-potentializing a true market worth of a royalty rate without knowing what is workable causes licensing arrangements that cannot be sustained.

Quality Control

Lack of monitoring and enforcement of quality standards with the current licensee damages both the reputation of the brand and customer relationships.

License Agreement Templates and Resources

Professional Template Components

A comprehensive license agreement template should include:

  • Industry-specific clauses and provisions
  • Customizable terms for different licensing types
  • Standard legal definitions and interpretations
  • Compliance checklists and review procedures

When to Engage Legal Professionals

Consider professional legal assistance for:

  • High-value intellectual property licensing
  • International or cross-border agreements
  • Complex regulatory compliance requirements
  • Multi-party licensing arrangements
  • Dispute resolution and enforcement actions

Termination and Dispute Resolution

Termination Procedures

License agreements should clearly define:

  • Specific breach conditions triggering termination
  • Notice requirements and cure periods
  • Post-termination obligations and restrictions
  • Asset return and confidentiality maintenance

Dispute Resolution Mechanisms

Effective dispute resolution includes:

  • Direct negotiation and mediation procedures
  • Arbitration clauses and governing rules
  • Jurisdiction and applicable law specifications
  • Emergency relief and interim measure provisions

Conclusion

Licensing agreements can effectively stimulate business growth and create revenue streams and opportunities for market penetration.  It does not really matter if you are a start-up seeking to monetize your innovations, or an established company interested in creating revenue streams.  Well-crafted licensing agreements create and allow for sustainable competitive advantage.

To achieve success, you must attend to legal considerations, set expectations, maintain regular communication with your licensee, exercise quality control, and manage the business relationship. Understanding the various types of licensing agreements, the elements in the contract, and the usual pitfalls, permits organizations to develop value-based partnerships which are favorable for both parties to establish long-term value. 

The contemporary business environment requires sophisticated licensing models which balance tradition and modernization, protection, and opportunity, market reach with exclusivity, and control with partnership with flexibility. Having the support of a professional judgment protects your interests, ensuring compliance with current laws while allowing your business to grow and be in a better position for the future. 

If you are ready to protect your intellectual property and develop a new second source of revenue, our licensing group has experience drafting, negotiating, and enforcing licensing agreements. Contact us today for an initial meeting and start protect your intellectual property and develop your licensing partnership. 

Contact Our Experts

Fast-Track Your Compliance with Diligence! Chat with us

Get a call back now

Our Related Services

Legal Notice

Divorce Notice

Public Interest Litigation

RERA Complaint

Legal Heir Certificate

Section 8 Demand Notice

Succession Certificate

Lease Agreement Drafting

Will Drafting

Mutual Divorce

Marriage Registration

Property Registration

Property Valuation

Property Verification

Lease Registration

Will Registration

Power of Attorney

Divorce Settlement Agreement

Hindu Marriage Act

Bail Application

Judicial Separation

Special Leave Petition

Consulting Agreements

Tenant Eviction

Civil Law

Quashing of FIR

Caveat Petition

Labour Law

Criminal Law

consumer Court

Vendor Agreement

License Agreement

Asset Purchase Agreement

Writ Petition

Domestic Violence

Defamation Law

Legal Notice For Non-Payment Dues

Online Dispute resolution

Reply to ITR Notice

Our allied partners

Frequently Asked Questions

A license agreement allows the IP holder to retain ownership, whereas an assignment means the ownership has been assigned to the assignee.

Royalties are typically between 2-10% of net sales, the rates vary depending on customary industry rates, the value of the IP, exclusivity to the specific market and the licensee's ability to commercially exploit the IP.

Yes, the license agreement can be terminated early for breach of contract, non-payment, failure of quality, bankruptcy or other circumstances outlined in the contact.

Union due to being agreed-upon verbally, license agreements may be legally binding, although often, people write license agreements and it is always preferred to license agreements provide for the best protections, more clearly identified terms and easier to return to in situations of disputes.

Control of improvements will typically depend on the terms of the contract, but generally follows "grant-back" requirements to provide for sharing those improvements with the Licensor.

The length of time depends both on the industry and the industry IP that the license is for. For example, a software license may be for perpetual IP rights, while an entertainment license to a brand or content can last from 1-10 years, sometimes extending to renewal options.

Speak to a Certified Compliance Consultant – Free

24 x 7 Support

Free Consultation

Trusted by 200+ Global Clients

100+ service team