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LICENSING-AGREEMENTS5 MIN READ

Scope the license before the words

Define license scope using six non-overlapping boundaries before drafting or redlining a grant clause.

The move: draft the permission map before the grant clause. Licensing agreements fail when the grant clause is broad enough to close the deal but too vague to run the deal. Scope is the operating system for the license: it tells sales what was sold, finance what can be billed, product what can be enabled, and compliance what must be watched. If the license is for software, content, data, patents, brand assets, or training materials, the same discipline applies: name the permission and bound it. MECE helps because it prevents two opposite errors. The "not exhaustive" error leaves out a…

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