A license contract is an agreement whereby one party, the licensor, grants another party, the licensee, a specific right to use a property right. This is often an intellectual property right, for example a trademark, a domain name, or copyrighted work. A well-known form of a license agreement involves an agreement to grant a software license. Through a software license, a right to use software is granted.
Typically, a license agreement contains provisions on a number of topics, such as what is licensed (and, additionally, which markets and territories are covered by the license); exclusivity or non-exclusivity; (restrictions with respect to) assignment or sub-licensing by the licensee; payment of fees (royalties); obligations in relation to liability, warranties and indemnities; the duration of the license; and the conditions under which the license agreement can be terminated. License agreements also often contain provisions protecting against the disclosure of know-how or other confidential information.
Under Dutch Caribbean law there are no specific statutory provisions regarding license agreements. This means that license agreements are subject to the general provisions of Dutch Caribbean contract law. This means that a license agreement, like any other contract, can be concluded verbally or in writing through the exchange of documents. However, in the case of intellectual property licenses, it should be noted that they can often only be enforced against third parties if they have been registered beforehand. It should also be noted that license agreements also often touch upon other areas of law such as competition law.