A Trade Secret License Agreement is a legal contract between a licensor (the owner of the trade secret) and a licensee (the party seeking access to the trade secret). Trade secret license agreements provide for the secure transfer of rights in a secret process or formula, invention, or confidential information between parties. They grant the licensee permission to use some or all of the information that comprises a trade secret, but the licensor retains complete ownership rights to the secret.
This agreement allows the licensee to use the trade secret information while ensuring that the licensor retains ownership rights. The document typically includes several key components: Description of the Trade Secret, License Terms, Maintenance of Secrecy, Payment Terms, Audit Rights, Termination, and the Governing Law.
This agreement helps protect the licensor’s valuable intellectual property while enabling the licensee to benefit from the trade secret.
