Document background
The License Option Agreement is a strategic document used when parties wish to establish a framework for a potential licensing relationship while allowing the potential licensee time to evaluate the opportunity. This agreement type is particularly relevant in Belgium, where it must align with both national civil law and EU regulations. The document typically includes detailed provisions about the option period, exercise mechanisms, due diligence rights, and the terms of the potential future license. It's commonly used in technology transfers, pharmaceutical licensing, software licensing, and other intellectual property transactions where the potential licensee needs time to assess the commercial viability or technical compatibility of the licensed subject matter. The agreement provides protection for both parties during the option period while setting clear parameters for the potential future licensing relationship.
