Important elements
In the case of a license agreement, given the Dutch freedom of contract, one is free to agree what one wants. Usually a license agreement contains provisions on the following subjects: what is licensed under the license agreement; which products, markets and territories are covered by the license agreement; what fee (royalties) is paid for the license under the license agreement, such as a lump sum, a fixed amount per month/year or an amount based on the number of products licensed (running royalties); the obligations of both parties with regard to quality, minimum turnover or royalty compensation; liability, guarantees and indemnities; the duration of the license and the license agreement; and the conditions under which the license agreement can be terminated.
Software License Agreement
A well-known form of a license agreement is an agreement to grant a software license. By means of a software license a right of use of software is granted. A license agreement is an agreement whereby one party grants the other party a certain right, in this case the right to use certain software. Also with a software license agreement, given the Dutch freedom of contract, one is free to agree what one wants. Software license agreements often contain the same points as a normal license agreement, as described above. Of course, it is important that the software, and its permitted use, for which a license is granted, is specified in the software license agreement.