Parties should be aware of the duration and termination rights if they intend to maintain the current license indefinitely and do not want the courts to imitate a prior right of termination. Otherwise, the parties could find the investments they have made or the opportunities they have given up, relying on the continuation of their license agreement, if the counterparty terminates without reason. Between 2012 and 2014, the royalties paid by Ward to Mevon were very low, much lower than the previous minimum licence fees that had been withdrawn from the licence by agreement as part of the transfer of the licence to Ward. The letter must be notified to the licensor on the method (or one of the methods) indicated in the certificate. There is often a “Notices” clause that defines where and how communications should be sent. Subject to what is in the license, manual or delivery delivery will likely be the safest. It`s hard to see how relevant poor performance is to whether there is a right to resign for convenience. Whether this right exists depends on the intentions of the parties at the time of conclusion of the contract and not on the circumstances at the time of termination. Where a licensor wishes to be able to terminate for poor performance, it must ensure that the licence agreement meets clear performance requirements and has an explicit right to terminate if these conditions are not met. Mevon did the opposite by agreeing to remove the minimum license fees for the transfer of the license to Ward. A recent High Court decision highlights the importance of clear contractual terms specifying when and how parties can terminate their agreement. The judge also made some comments about how Ward`s poor performance in marketing and selling the products led Mevon to terminate, and that if Ward had shown good performance, “there could have been a case. for the argument of a contractually inappropriate attitude on the part of [Mevon] to enter the market in competition with its licensee. You should check the license agreement carefully to see if you can terminate it.
The conditions of the termination clause must be respected, for example. B indicating the appropriate notice period. Keep in mind that the notice period begins from the date the licensor receives the letter, not from the time the letter is published. Do not leave it until the last minute to mail the letter. If, for example, the licence was authorised on 28 The letter must reach the licensor before 28 November. It should therefore be published well in pre-date, for example. .
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