A Bare Licence vs. Contractual License

Attribute	A Bare Licence	Contractual License
Definition	Permission to use property without any rights or warranties	Permission to use property with specific terms and conditions
Revocability	Can be revoked at any time by the licensor	May have restrictions on revocation based on contract terms
Transferability	Generally not transferable to others	May be transferable with permission from licensor
Liability	Licensor may not be liable for any issues arising from use	Licensor may have liability based on contract terms

Introduction

When it comes to licensing agreements, there are various types that individuals and businesses can enter into. Two common types of licenses are a bare license and a contractual license. While both types of licenses grant permission to use a particular asset, there are key differences between the two that are important to understand.

Definition of A Bare Licence

A bare license is a type of license that grants permission to use a particular asset without any additional terms or conditions attached. It is a simple and straightforward agreement that allows the licensee to use the asset in a specified manner. A bare license does not involve any promises or obligations on the part of the licensor, other than granting permission to use the asset.

Attributes of A Bare Licence

One of the key attributes of a bare license is that it is revocable. This means that the licensor can revoke the license at any time without providing a reason. Additionally, a bare license does not provide the licensee with any warranties or guarantees regarding the asset being licensed. The licensee must take the asset as is, without any assurances from the licensor.

Another attribute of a bare license is that it is non-transferable. This means that the licensee cannot transfer the license to another party without the consent of the licensor. The license is granted specifically to the individual or entity named in the agreement, and cannot be passed on to anyone else.

Definition of Contractual License

A contractual license, on the other hand, is a type of license that is granted under specific terms and conditions outlined in a contract. This type of license involves a more formal agreement between the licensor and the licensee, with both parties agreeing to certain obligations and responsibilities.

Attributes of Contractual License

One of the key attributes of a contractual license is that it is typically irrevocable. Once the terms of the contract are agreed upon and the license is granted, the licensor cannot revoke the license without breaching the contract. This provides the licensee with more security and stability in their use of the licensed asset.

Another attribute of a contractual license is that it often includes warranties and guarantees from the licensor regarding the quality and condition of the asset being licensed. The licensor may promise that the asset is free from defects or that it will perform in a certain way, providing the licensee with added assurance.

Comparison of A Bare Licence and Contractual License

When comparing a bare license and a contractual license, one of the key differences is the level of formality and specificity involved. A bare license is a simple agreement that grants permission to use an asset without any additional terms or conditions, while a contractual license involves a more detailed contract outlining specific obligations and responsibilities.

Another difference between the two types of licenses is the revocability. A bare license is revocable, meaning that the licensor can revoke the license at any time without providing a reason. In contrast, a contractual license is typically irrevocable, providing the licensee with more security in their use of the asset.

Additionally, a bare license does not provide the licensee with any warranties or guarantees regarding the asset being licensed, while a contractual license often includes warranties from the licensor regarding the quality and condition of the asset. This can provide the licensee with added assurance and protection.

Conclusion

In conclusion, while both a bare license and a contractual license grant permission to use a particular asset, there are key differences between the two types of licenses. A bare license is a simple agreement that is revocable and non-transferable, while a contractual license involves a more formal contract with specific terms and conditions, often including warranties and guarantees. Understanding these differences can help individuals and businesses make informed decisions when entering into licensing agreements.