What is a license agreement and when to use it

A license agreement grants permission to use a copyrighted work – such as a photograph, text, design, logo or software – under defined terms.
It can be exclusive (only one user) or non-exclusive (multiple users).

Typical examples:

• granting a license for images, illustrations, music, apps

• licensing text content or software to another company

• giving permission to use a trademark or branding elements

Legal framework

License agreements are regulated by the Czech Copyright Act (Act No. 121/2000 Coll.), especially Section 46 and onwards.

Key aspects:

• applies to copyrighted works

• can be exclusive or non-exclusive

• must be in writing for exclusive licenses

• may be paid or free of charge

Mandatory elements of a license agreement

• Parties to the agreement (licensor and licensee)

• Work to be licensed (description of the content)

• Scope of license (use, territory, time)

• Exclusive vs. non-exclusive license

• Fee or royalty (if any)

• Possibility of sublicensing or resale

• Termination clause

• Date and signatures

Common mistakes in practice

• Vague or missing description of the work

• No mention of exclusivity (risk of conflict)

• No fee agreed and no mention that it’s free → legal uncertainty

• No clause on modifications or derivative use

• Missing control over how the work is used

Recommendations for licensors and licensees

Licensor:

• Clearly define the permitted uses and prohibit all others.

• Consider limiting sublicensing or marketing usage.

Licensee:

• Ensure the license allows all intended uses (e.g. edits, print, distribution).

• Include a long enough duration and opt-out clause if needed.

Practice tip

If the agreement does not specify the term, Czech law assumes 1 year by default. Always clarify the license duration in writing – especially for ongoing projects or content reuse.

Basic license agreement template – available for a symbolic fee

If you need a simple license agreement (e.g. for images, text, software, logo), I can send you a template by e-mail for a symbolic fee.

It is suitable for standard licensing situations.
For complex needs (exclusive licenses, multiple works, international rights), I will gladly prepare a tailored version.

FINAL THOUGHTS – WHAT NOW?

A licence agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.