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When it seems likely that a licensee may develop improvements in the licensed technology, an licensor may wish to include a Grant back provision in the license agreement.
What is meant by a Grant back provision?
A grant back provision is a clause in a license agreement that calls for the licensee to return to the licensor any upgrades or changes made to the technology under license. In order to preserve the licensor's ability to advance and develop the technology and to safeguard the licensor's intellectual property rights, this is done.
A grant back clause in the license agreement may be included by the licensor if it appears likely that the licensee will make enhancements to the licensed technology. This will ensure that the licensor can profit from these advancements.
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