The application of a license agreement becomes much easier when the contract itself is well written. If the parties clearly understand their rights and obligations under the license agreement, this can help avoid long-term litigation. Your agreement must contain language relating to restrictions as well as descriptions of certain conduct that would constitute a material violation. In the event of a material breach, you may treat the License Agreement as terminated and you may be entitled to damages against Licensee. You can also break an agreement if the violation is not significant and there are no consequences. Thus, in many situations, agreements are broken at all times, but the way they are broken is not fundamental to the functioning of the treaty. The second is to break an agreement and accept that there are consequences of such a violation, and to be willing to accept those consequences. In the context of franchising, this may mean that a franchisee breaks the agreement with the franchisor but is willing to pay the indemnity provided for either by general law or specifically under the contract. License agreements are contracts and are subject to various contractual and commercial laws.
Therefore, the application of a license agreement may involve various contractual remedies. Violations of the conditions contained in a license agreement can result in the following remedies: This is where the difficulty can arise: Across the EU, national regulations may provide for different areas of protection. In the Netherlands, Germany and the United Kingdom, it appears that a breach of a software licence agreement could be either an infringement of intellectual property or a breach of contract. Other countries, such as Belgium and France, prohibit the possibility of relying on both options and are looking for a sequence of prevalence. These converging rules prompted the Paris Court of Appeal to ask the Court of Justice of the European Union (CJEU) a question about the violation of a license agreement. Many types of licensing agreements also include intellectual property laws, the . B those that govern the infringement of copyrights, trademarks, brand names and patents. Violations related to violations are subject to criminal law, not just private civil lawsuits. Even under a truly irrevocable perpetual license agreement, if the licensee commits a material breach, you have the right to terminate the agreement. Examples of material infringements include: Another important issue in distinguishing between breach of contract or infringement of intellectual property is whether the provision of the licence agreement relating to the infringing vessel is a contractual agreement or a condition precedent.
If the provision were a contractual agreement, the breach would only result in a breach of contract. However, if the provision were a condition precedent, then the condition would not be met and the contract would not actually exist. Therefore, any use of intellectual property would result in counterfeiting. Does failure to comply with a software license agreement constitute an infringement of intellectual property or can it be subject to another national legal system? The Paris Court of First Instance examined French law. Article L122-6 of the Intellectual Property Act defined infringement as copyright infringement, but Article L122-6-1 of the same Code dictated that general contract law was applicable. The court therefore dismissed the action, finding that tort liability is not taken into account in favor of contractual liability if the parties are bound by a valid agreement and that the damage suffered by one is due to the fact that the other does not comply with its obligations. .