Licensing Disputes

Practical, Commercial Support for Intellectual Property Licensing Disputes

Licensing arrangements are essential for many businesses — they allow innovation to be monetised, markets to be accessed, and collaborations to flourish. But when licensing agreements break down, the commercial and legal consequences can be severe.

Whether you’re a licensor not being paid what you’re owed, or a licensee facing restrictions or accusations of breach, The Jonathan Lea Network helps small and medium-sized businesses resolve IP licensing disputes quickly, strategically, and cost-effectively.

We combine intellectual property expertise with commercial insight to protect your rights, preserve relationships where possible, and pursue or defend claims robustly where necessary.

What Is an IP Licence?

A licence is a legal agreement that allows one party (the licensee) to use another party’s intellectual property (the licensor) in exchange for agreed terms — often royalties or a fee.

IP licensing agreements may involve:

• Trademarks (e.g. brand or logo licensing)
  
• Copyright (e.g. software, media, or creative content)
  
• Patents (e.g. manufacturing or use of a patented invention)
  
• Design rights (e.g. product appearance)
  
• Trade secrets or know-how (e.g. processes, formulas, techniques)
  

Licences can be exclusive, non-exclusive, or sole, and the terms often govern scope of use, territory, duration, sublicensing rights, royalty structures, and termination rights.

When these terms are disputed or breached, swift legal action is often needed to limit disruption and protect commercial interests.

Common Licensing Disputes We Handle

We regularly assist clients with the following types of IP licence issues:

• Non-payment of royalties: Licensees failing to pay royalties owed, or underreporting revenues linked to IP use.
  
• Use outside agreed scope: The licensee using the IP in a different territory, field, or medium than agreed.
  
• Unauthorised sublicensing: IP being sub-licensed to third parties without the licensor’s permission.
  
• Expiry or termination conflicts: Disputes over when a licence ends, whether renewal rights exist, or whether a termination is lawful.
  
• Infringement by licensees: Continued use of IP after a licence has been revoked or expired.
  
• Poor performance by licensors: Where the licensor fails to provide access, support, or exclusivity promised in the licence.
  
• Ambiguity or gaps in written terms: Many older or informal licences lead to disputes due to vague or missing clauses.
  

Our Legal Services for Licensing Disputes

We offer a full range of advisory, negotiation, and litigation services for clients involved in licensing disagreements. Our typical process includes:

1. Licence Agreement Review and Risk Assessment

We start by reviewing the written licence (or evidence of an oral/implied agreement), identifying the key issues, and advising on your legal position. We assess:

• The enforceability of the licence
  
• Compliance with contractual obligations
  
• Payment obligations and termination clauses
  
• Any breach, repudiation, or waiver of rights
  
• Clauses governing dispute resolution
  

We’ll give you a clear summary of your rights, risks, and options.

2. Pre-action Correspondence and Strategic Advice

Before launching formal proceedings, we usually engage the other side with a well-drafted Letter Before Action or a strategic reply to one. We can demand unpaid royalties, require compliance with licence terms, or challenge a wrongful termination.

This early stage often resolves matters without escalation and can preserve valuable commercial relationships.

3. Negotiation and Settlement

We work to resolve licensing disputes through:

• Direct negotiation, often leading to a revised agreement or commercial settlement
  
• Mediation, particularly when parties wish to preserve their working relationship
  
• Without prejudice correspondence, to propose or evaluate settlement offers safely
  

Where possible, we structure resolutions that preserve business continuity and avoid public dispute.

4. Litigation in IPEC or High Court

If resolution cannot be achieved, we can issue or defend proceedings in the Intellectual Property Enterprise Court (IPEC) or the High Court, depending on the claim’s complexity and value.

We’re experienced in pursuing and defending claims for:

• Breach of contract
• IP infringement
• Unjust enrichment
• Declaratory relief (e.g. whether the licence remains valid)
  

Remedies may include:

• Injunctions
• Payment of outstanding royalties
• Damages or account of profits
• Termination declarations
• Orders to return or cease use of licensed materials
  

Supporting Both Sides: Licensors and Licensees

We advise:

• Licensors: looking to enforce their IP rights, recover unpaid royalties, or end licence agreements due to misuse
  
• Licensees: accused of breach or seeking to challenge overreaching licensors
  

Whether you’re the rights holder or the user, our aim is to clarify your position quickly and deliver a pragmatic outcome.

International and Cross-border Licensing Disputes

Licensing often involves cross-border elements — especially in the digital, manufacturing, and franchise sectors. We assist with:

• Interpretation of international licensing agreements
  
• Conflicts of law and jurisdiction clauses
  
• Enforcement of foreign judgments in the UK
  
• Coordination with overseas counsel where required
  

If your licence spans different markets, we help you understand which country’s law applies and what remedies are realistically available.

Why Choose The Jonathan Lea Network?

Licensing disputes demand more than legal knowledge — they require commercial insight, diplomacy, and strategy. At The Jonathan Lea Network, we bring:

• SME-focused advice: We work with both rights holders and technology users, giving us balanced insight
  
• Clear, accessible communication: We explain complex licence terms and disputes in plain English
  
• Litigation and settlement expertise: We know when to negotiate and when to push forward with leg
  
• Transparent pricing: We offer fixed-fee initial reviews and provide realistic cost estimates for ongoing action
  

Whether you’re looking to protect your IP or defend your business use of it, we’re here to help you find a way forward.