Companies often rely on third parties (licensees) to ensure optimal commercial exploitation of a protected right. If conflicts arise regarding the manner in which the right is utilised, the business performance of both licensor and licensee can quickly suffer. Although comprehensive licence agreements typically regulate in detail how a protected right may be marketed, CenaCom’s experience shows that differing interpretations of contractual provisions are common. this often leads to fundamental disagreements.
Once a conflict escalates, it can rapidly cause significant contractual disruptions, resulting in diminished commercial exploitation of the protected right for both parties.
This is where out-of-court conflict management comes into play, through mediation, conciliation, or settlement procedures. With the support of a neutral CenaCom mediator, the parties first clarify the interests they are pursuing in the conflict. Only then does the process shift to developing a mutually acceptable resolution. A frequent goal is to swiftly terminate a licence agreement or to realign it with a future-oriented perspective.