More WIPO: contracts & licenses IPNM 2007 Kaido Kikkas This document uses the GNU Free Documentation License (v1.2 or newer).

Some more things traditional Contract - a legally binding exchange of promises or agreement between parties that is backed up by the law License – a legal permit to use someone else's creation (IP) under predetermined conditions

Some legal terms at contracts General principle: pacta sunt servanda Exception: jus cogens Even more Latin: bona fide aka good faith Disposition: what is not forbidden, is allowed Undue influence (lack of) Reason

Types of contract Transfer contracts (sale, exchange, donation) Contracts for use (rental, leasing, licensing, loan) Insurance contracts (life insurance, property insurance) Service contracts (hiring, representation) ...

Warrants of contract Deposit Late interest Contractual penalty Pledge Surety

Offer and acceptance The acceptance must be communicated. Prior to acceptance, an offer may be withdrawn. An offer can only be accepted by the offeree, that is, the person to whom the offer is made. An offeree is not bound if another person accepts the offer on his behalf without his authorisation. It may be implied from the construction of the contract that the offeror has dispensed with the requirement of communication of acceptance. If the offer specifies a method of acceptance (such as by post or fax), you must accept it using a method that is no less effective than the method specified. Silence cannot be construed as acceptance.

Using someone else's creation Typically possible when the author has transferred the IP rights (sold, donated, given up) the author has issued a permit (license) for its use

Limits Can be limited by ways purposes period territory extent or instrument

License Legal permit to use (manufacture, sell) someone else's creation Licenser - issues a license Licensee - receives a license

Main types Non-exclusive license Exclusive license Absolute license Cross-license Sublicense Compulsory license

Payment options Single payment Periodical payments (royalties) Single initial payment and royalties Single initial payment and royalties with a guaranteed minimum

Next time... ... we will look at software licensing the problems with applying the traditional models on software