Document background
The License Agreement Before Settlement is a strategic legal instrument used in Canadian jurisdictions when parties involved in an intellectual property dispute need to maintain business operations while working toward a final resolution. This document type is particularly valuable in situations where an immediate cessation of IP usage would cause significant business disruption, yet the parties require time to negotiate a comprehensive settlement. It provides a structured framework for temporary licensed use of disputed intellectual property, incorporating specific Canadian legal requirements from both federal IP laws and provincial contract laws. The agreement typically includes detailed provisions for license scope, payment terms, quality control, and reporting requirements, while explicitly preserving both parties' legal positions for final settlement negotiations. This type of agreement is commonly used in technology licensing, manufacturing, and other sectors where intellectual property rights are crucial to ongoing operations.
