Which of the following is an example of an exclusive license agreement?
A)Three licensees have worldwide rights to sell the product worldwide for three years, during which time no other companies can use the asset.
B)The licensee is currently the only company using the intangible property, but the licensor has rights to add other licensees.
C)One licensee gets rights for the north island of New Zealand, a second licensee gets rights for the south island of New Zealand, and the licensor agrees to add no new licensees to New Zealand for the next five years.
D)The licensee and licensor use the property in the same market.

Question

Quizplus · Accepted Answer

An exclusive license agreement grants rights to a single licensee and prohibits the licensor from granting those same rights to others. In option C, each licensee has exclusive rights to a specific geographic area (north vs. south island) and the licensor agrees not to add any new licensees to that area for a set period of time, making it an example of an exclusive license agreement. Option A allows for multiple licensees to sell the product worldwide, making it non-exclusive. Option B allows for the licensor to add other licensees in the future, also making it non-exclusive. Option D does not specify whether the license is exclusive or non-exclusive.

Which of the Following Is an Example of an Exclusive