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Exclusive/ Non-exclusive help
Posted by Anonymous . updated on 2/26/2009
Somewhat confused. Can someone please clarify for me what these terms do in a grant, and how does this impact right to use?
Also, on affiliates, this issue ties in with right to use potentially, and of course pricing, correct?
Many thanks.
Answers (7)
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pitbull...
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Surely I didn't stump everybody with this....
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JSonnab...
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What kind of "grant"? If you're talking about a license, then "exclusive" and "non-exclusive" mean exactly what they suggest.
I'm not sure what you mean by "affiliate".
- Jeff
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pitbull...
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Thanks for the feedback, I appreciate it.
Under the grant heading of say, a perpetual software license - exclusive means to only one other party, correct?
By affiliates, I meant A licenses to B + B's affiliates.
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Kaitlin
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Exclusive and non-exclusive generally refer to rights -- those rights may be exclusive or non-exclusive with respect to a party but also with respect to a party within this or that territory or market as opposed to some other territory or market.
Re affiliates: I think we need to know not so much what you mean by the term "affiliates," but what you mean by the affiliate "issue".
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JSonnab...
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"Affiliates" can mean a lot of different things. Bottom line here is that it makes no sense to analyze a contract piecemeal. The only way to interpret the contract is to review the whole contract.
- Jeff
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pitbull...
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Thanks for the feedback, I really do appreciate it.
I am not referring to a specific contractual problem, just points that I want to clarify for myself.
Ok, how's this: when is it critical to define "affiliate" [controlled directly, indirectly, >50%, etc.], in a software license, or always critical? Given the penalties for unauthorized right to use, my guess is always.
Would the same reasoning apply to say, a patent license? My guess is yes, especially if it was "exclusive" to one party.
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Kaitlin
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As Jeff points out and you recognize, "affiliate" is not a term with one single accepted meaning. If you want to avoid squabbles down the road over who is entitled to what, clear definitions are always advisable. This is true of any contract and therefore any license.
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