Document background
The License Option Agreement serves as a preliminary agreement that gives potential licensees the opportunity to evaluate intellectual property before committing to a full license agreement. This type of agreement is particularly useful in the Indian market where companies need to assess the commercial viability of IP rights while securing their interest in the technology. The document is structured under Indian law and typically includes detailed provisions about the option terms, evaluation period, and the framework of the future license agreement. It's commonly used when parties need time for due diligence, market assessment, or regulatory approval before committing to a full license. The License Option Agreement provides protection for both the IP owner and the potential licensee during this evaluation period, while setting clear parameters for the eventual license relationship.
