Legal Question in Business Law in California

Contract/Agreement: Affiliation vs. Licensing

I will be forming an LLC, and am reviewing a CA company issued Affiliation Agreement which includes granting of a license for me to use the CA company's trademarked material, logos, etc.. Are there any material differences between an ''Affiliation Agreement'' and a ''Licensing Agreement?''


Asked on 12/29/05, 3:29 pm

4 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

Re: Contract/Agreement: Affiliation vs. Licensing

The lable you put on a contract is irrelevant, it is the content that matters. The term "affiliation" implies a lot closer relationship that just "licensing" something, but you really need to look to the actual terms of the contract to make sure that the document truly reflects your underdstanding of the bargain.

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Answered on 12/29/05, 3:43 pm
Robert Davies The Davies Law Firm, P.A.

Re: Contract/Agreement: Affiliation vs. Licensing

You must, must consult an attorney if you are putting any money (or promising to pay money) into this venture. You need expert advice to make sure that this contract says what you think it says. The contracts which I draft are set up to favor my clients on every legal issue; then, if the other side does not change it, my client has substantial advantages, real money advantages. Doing this for yourself is like a decent high school hitter trying to get a hit off of a top notch pro pitcher; it is not likely to work out well for you.

Please contact me if you wish some assistance. My contact information is below my name.

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Answered on 12/29/05, 4:00 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Contract/Agreement: Affiliation vs. Licensing

The importance of the name on a contract varies from almost irrelevant to totally irrelevant.

You have to read it and understand it to know what it is.........remember, the basic idea of any written contract is to serve as evidence of what the parties have agreed upon -- their so-called "meeting of the minds" -- so it is very important to make sure that every promise in the contract made by you is something you'll come through on; and every promise made by the other party is what you expect in return, and that in total you get at least what you want and give up no more than it's worth.

"Affiliation" and "licensing" as legal terms both have very vague and broad meanings; there would be a lot of overlap and the boundaries of what each includes and excludes are very fuzzy.

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Answered on 12/29/05, 4:02 pm
John Corbett Corbett Law Firm LLC

Re: Contract/Agreement: Affiliation vs. Licensing

There probably is a difference although no one can say without reading the agreements.

Don't do this yourself unless you are investing nothing and have enough legal savy to be sure that you are not incurring any obligations that will surprise you later. It is rarely safe to start a business without a lawyer. It is never safe if the business depends on an association with another company who's forms were drafted by a lawyer.

If you want some examples about the trouble that can arise from unintended results, check out the Quiz page on my web site. Call or email if I can be of help to you.

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Answered on 12/29/05, 6:25 pm


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