Of course, the best form of quality control is usually carried out before the fact – carefully checking the reputation of the licensee. Another common quality regime in licensing agreements concerns the method of disposal of unsold goods. If the remaining items in stock are sold as cheap knockoffs, this can damage the licensor`s reputation in the market. A licence agreement is an agreement where by which a licensor grants another undertaking the right to intangible property for a certain period of time and receives in return a royalty from the licensee. Intangible property includes patents, inventions, formulas, processes, designs, copyrights and trademarks.  A licensing agreement is a contract between two parties (licensor and licensee) in which the licensor gives the licensee the right to use the licensor`s trademark, trademark, patented technology or ability to produce and sell products. In other words, a license agreement allows the licensee to use the licensor`s intellectual property. Licensing agreements are typically used by the licensor to commercialize their intellectual property. Under a typical end-user license agreement, the user can install the software on a limited number of computers. [Citation required] Each license agreement is unique and these agreements vary according to their nature (copyright, trademark, patent, etc.). The most common terms are that a license only applies to a given geographic region, only for a set period of time or for a single stage of the value chain….