IP Licensing & Commercialisation

IP licensing and commercialisation agreements let a business earn from its trademarks, copyright and designs, or use someone else’s, on agreed terms. A licence gives permission to use the right and leaves ownership unchanged; an assignment transfers ownership. Indian law requires both to be in writing for copyright and designs.

The rules differ by right. The Copyright Act, 1957 sets default terms where an assignment is silent. The Designs Act, 2000 requires assignments and licences to be registered. The Trade Marks Act, 1999 expects a licensor to control the quality of what is sold under the mark.

When you need it

  • When licensing a brand, content or software

    Franchising, merchandising, publishing, distribution of content and software licensing all rest on a licence.

  • When buying or selling IP

    A sale of a brand, a catalogue, a design or a codebase needs a written assignment that meets the statute for each right.

  • When two brands work together

    A co-branded product or campaign uses both parties’ marks and often creates new material that someone has to own.

  • When commissioning creative work

    Designers, photographers, writers and agencies own what they create unless the contract assigns it.

  • When licensing across borders

    A licence with a foreign party raises questions of tax on royalties, foreign exchange rules and which law governs.

How the process works

Five stages, from confirming ownership to registration. Timings are typical, not promised.

  1. 1

    Confirm who owns what

    A few working days

    Check that the licensor or seller actually owns the rights: registrations, the chain of title from the authors and any earlier licences that could conflict.

    Documents

    • Registration certificates
    • Earlier assignments and licences
    • Contracts with the people who created the work
  2. 2

    Settle the scope

    Depends on the parties

    Agree what is licensed, for which products or uses, in which territory, for how long, and whether the licence is exclusive, sole or non-exclusive, and whether it can be sub-licensed.

  3. 3

    Settle the money

    Alongside the scope

    Agree the fee or royalty, how it is calculated, minimum payments, reporting and audit rights, and who bears the tax. Royalties paid to a non-resident are subject to withholding tax.

  4. 4

    Draft the agreement

    Commonly one to two weeks

    Set out the grant, quality control and approval rights, ownership of improvements and new material, warranties, infringement claims, termination and what happens to stock and materials at the end.

  5. 5

    Stamp, sign and register

    At and after signing

    Pay the stamp duty that applies, sign, and register the document where the statute requires or allows it: with the Controller for designs, and with the Trade Marks Registry for assignments and registered users.

Common questions

A licence is permission to use a right within stated limits; the owner keeps it. An assignment transfers ownership itself, in whole or in part. The label on the document does not decide which it is; the terms do.

To discuss an IP licence or assignment, write to info@ireniclegal.com or call +91 96547 47331. Written by Adv. Kanika Marwaha Bindal; last updated 7 October 2026.