Alok Rathod (Sales & Marketing) 19 October 2014

Lock-in period in l&l agreement

Dear Forum,

Greetings.

I have queries pertaining to lock-in period in a L&L Agreement.

1) Can a Licensor insist on "No-Lock-in-Period" clause in the Agreement? If yes, does the Law protect rights of a Licensee who has not violated any terms & conditions as stipulated in the Agreement unless proved otherwise?

2) Is lock-in period otherwise compulsory for an 11 month L&L Agreement?

3) in case of "No-Lock-in-Period", whats is the max. notice period given to the Licensee?

Your expert inputs are anticipated.

Thanks & Regards.

Alok.

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1 Replies

V. VASUDEVAN (LEGAL COUNSEL) 19 October 2014

Leave and License is an agreement, bound by the terms of mutual agreement written into a contract and hence the parties can agree on their own terms. Neither lock in period nor a particular notice period is mandatory. It is advisable to keep at least a months' notice period for 11 month lease and if it is a long term agreement, at least three months, as a practice notice period required by either party to comply with such notice.