The license agreement must include a language that addresses the issue of property disputes. For example, what happens if someone disputes ownership of a trademark that you license? Or what if someone plagiarizes the copyrighted work that is licensed? Both parties to the license agreement must agree on how to deal with these issues. A License Agreement is an agreement between two parties (licensor and licensee) in which licensor establishes the licensee`s right to use the licensor`s brand name, trademark, patented technology, or ability to manufacture and sell goods. In other words, a license agreement grants the licensee the opportunity to use the licensor`s intellectual property. License agreements are typically used by the licensor to commercialize their intellectual property. Due to the legal basis they must cover, some licensing agreements are quite long and complex. But most of these agreements cover the same fundamental points. In particular, Katz and Shapiro (1986) investigated the optimal licensing strategy of a research lab that sells products to competing companies in the market.  It turns out that (compared to the welfare maximisation solution) the licensor`s incentives to develop innovations may be excessive, while the licensor`s incentives to disseminate the innovation are generally too weak.
As a result, the revolutionary work of Katz and Shapiro (1986) was expanded in several directions. Such reproduction would be inappropriate and could cease using the legal system if the IP owner so wished.  In addition to the details of all parties involved, the license agreements specify in detail how the licensed parties can use the properties, including the following parameters: start and end of the contract. . . .