Legal Definitions - distribution license

A distribution license is a legal agreement where the owner of a product, intellectual property, or content grants another party permission to sell, circulate, or make available copies of that item to the public. This license specifies the terms and conditions under which the distribution can occur, such as geographic regions, duration, and any associated fees or royalties. Essentially, it's the legal authorization needed to spread or disseminate something created by someone else.

• Example 1: Software Reseller Agreement
  A software company develops a new accounting program. To expand its market reach without building its own extensive sales network, the company enters into a distribution license agreement with a large electronics retailer. This agreement grants the retailer the legal right to sell physical copies of the software in its stores and digital downloads through its website across several countries. The license outlines the pricing, marketing guidelines, and the percentage of sales the software company will receive as royalties.

  How it illustrates: The software company (the owner) grants the electronics retailer (another party) the explicit permission to sell and make available copies of its software (the product) to the public, defining the commercial terms under which this distribution can take place.

• Example 2: Independent Film Rights
  An independent film studio produces a critically acclaimed documentary. To ensure the film reaches a global audience, they sign a distribution license with a major international streaming platform. This license allows the streaming platform to host the documentary on its service, making it available for viewing by its subscribers worldwide for a specific period, in exchange for an upfront fee and a share of future revenue.

  How it illustrates: The film studio (the owner of the content) provides the streaming platform (another party) with the legal authority to circulate and make available their film (the content) to a broad audience (the public) according to the agreed-upon terms.

• Example 3: Pharmaceutical Product Sales
  A pharmaceutical company develops a new patented medication. Instead of establishing manufacturing and sales operations in every country, they grant a distribution license to a local pharmaceutical distributor in a specific region, such as Southeast Asia. This license permits the local distributor to import, market, and sell the medication to hospitals and pharmacies within that region, adhering to local regulations and quality standards, and paying a royalty to the patent-holding company for each unit sold.

  How it illustrates: The pharmaceutical company (the owner of the patented product) grants the local distributor (another party) the legal right to sell and circulate its medication (the product) to the public within a defined geographical area, under specific conditions.