This legal service helps protect brand reputation, safeguard intellectual property, and ensure consistent product quality in every market. It also defines what each party can do with licenses, manages royalties, and provides dispute resolution mechanisms that save time and money when conflicts arise.
Improved consistency across licenses leads to better brand control, easier compliance auditing, and stronger negotiating leverage with manufacturers, distributors, and retailers. This consistency also reduces the chance of conflicting terms that could derail collaborations.
Hatcher Legal, PLLC serves North Carolina clients with a practical, client-focused approach to licensing and distribution. We help simplify complex terms, assess risks, and craft agreements that support sustainable growth.
We establish dispute resolution procedures and exit strategies to protect continuity.
A licensing agreement is a contract that grants the right to use intellectual property, typically including terms on scope, territory, and duration. It defines who may use the IP, how royalties are paid, and what quality standards must be met. This structure protects both IP owners and licensees.
A distribution agreement governs the sale and movement of products through channels, identifying responsibilities for marketing, pricing, and inventory. It covers exclusivity, product support, and remedies. Properly drafted, it aligns channel goals and minimizes conflicts between manufacturers and distributors.
Exclusivity can focus a partner’s efforts and create channel loyalty, but it also concentrates risk. Clear performance milestones and renewal terms help ensure commitments are met, while remedies prevent stagnation or breach from stalling market entry.
Royalties are typically calculated as a percentage of sales or a fixed payment. Contracts specify what constitutes sales, how deductions are treated, and who pays for taxes and currency conversion. Clear royalty terms prevent disputes and ensure predictable revenue.
Common remedies include termination, cure periods, damages, or specific performance. A well-drafted contract also outlines wind-down procedures, data return, and post-termination obligations to protect ongoing operations.
Licensing agreements vary, but many last for several years with automatic renewals or renegotiation options. The term should reflect market conditions, product lifecycle, and ongoing performance, with clear procedures for extension or termination.
Agreements can be updated through amendments or addenda that reflect changes in product lines, markets, or pricing. Regular reviews and governance provisions maintain relevance and compatibility across partner relationships.
Audit rights allow licensors to review records to verify compliance with terms, including sales, royalties, and quality. They should balance the need for oversight with reasonable privacy and cost considerations.
Dispute resolution typically involves negotiation, mediation, or arbitration, followed by enforcement of the decision. Including governing law and venue helps manage expectations and promotes timely, fair outcomes.
Our firm combines practical drafting with clear communication, transparent pricing, and responsive service. We tailor guidance to the North Carolina market, helping clients negotiate favorable terms while safeguarding their brand and distribution strategies.
