Clause library

Intellectual property licence clause, explained

An intellectual property is permission to use work the supplier still owns — uses, term and territory named, ownership left where it is.

Last updated 28 October 2026

What does an intellectual property licence clause do?

An intellectual property licence is permission to use work the supplier still owns. Copyright stays with the author unless assigned in writing (CDPA 1988 s.90(3)). An exclusive licence must be in writing, signed by or on behalf of the copyright owner (s.92). We name the uses, the term and the territory on one page.

How is a licence different from an assignment?

A licence is permission. An assignment moves ownership. CDPA 1988 s.90(3) says an of copyright is not effective unless it is in writing signed by or on behalf of the assignor. A licence can be narrower: named media, a term of years, a territory. If the client needs to own the work, write an assignment. If it needs to use it, write a licence. See IP assignment.

What must an exclusive licence look like?

CDPA 1988 s.92(1) defines an exclusive licence as a licence in writing, signed by or on behalf of the copyright owner, that lets the licensee exercise a right to the exclusion of everyone else, including the person who granted it. A handshake exclusive is not an exclusive licence under the Act. A non-exclusive licence does not need that form, but writing still beats a later argument. Name exclusive or non-exclusive in the clause.

What uses should the clause name?

Media, territory, term, and whether the client may sublicense or adapt. A photographer’s web-and-social licence is a different grant from a worldwide buyout. CDPA 1988 s.16 lists the restricted acts; the licence is permission to do some of them. Pair usage with credit. Pre-existing materials stay on a separate, narrower licence so a typeface or framework is not treated as a deliverable.

Do pre-existing materials need a separate licence?

Yes. Tools, stock, fonts, code libraries and earlier work stay with the supplier unless the paper assigns them. The usual pattern is: new deliverables licensed (or assigned) to the client; licensed only as needed to use those deliverables. Write that split. Do not let a wide exclusive licence swallow the supplier’s own kit.

Example wording

Example · our own drafting

The Supplier keeps ownership of all intellectual property rights in the Deliverables and in its pre-existing materials. The Supplier grants the Client a [non-exclusive], worldwide, perpetual licence to use, reproduce and display the Deliverables for the Client’s own business purposes. The licence of pre-existing materials is limited to use as part of the Deliverables. An exclusive licence of copyright, if granted, is in writing signed by the Supplier.

In Plain English

The supplier still owns the work and its own tools. The client may use, copy and show the finished work for its own business, anywhere, with no end date, and is not the only person who may do so. The supplier’s own tools may be used only as part of that finished work. If the client is to be the only licensee, that exclusive permission is signed in writing.

What should you watch for?

PointWatch forPush for
FormAn ‘exclusive licence’ that is never signed, or a US line on an England and Wales paper.A signed writing for any exclusive copyright licence (CDPA s.92), or a named non-exclusive grant.
Uses‘All media, worldwide, in perpetuity, including unknown uses’ on a day rate.Named media, a territory and a term that match the fee.
OwnershipA licence that is silently treated as an assignment.A sentence that the supplier keeps copyright unless s.90(3) writing says otherwise.
ToolsPre-existing materials swept into the same exclusive grant as the new work.A limited licence of pre-existing materials to use the deliverables.
CreditSilence on credit while a moral-rights sits elsewhere.The credit line next to the licence, or an express waiver in writing (CDPA s.87).

Which contracts include it?

Lex includes this clause in, among others:

  • Photography licence
  • Graphic design contract
  • Music producer agreement

What does the law say?

  • An assignment of copyright is not effective unless it is in writing signed by or on behalf of the assignor. Copyright may be assigned in whole or in part. A licence is permission to use the work; it is not an assignment of ownership.

    Source: Copyright, Designs and Patents Act 1988, s.90Checked 28 October 2026Pending lawyer review

  • An exclusive licence is a licence in writing signed by or on behalf of the copyright owner authorising the licensee to the exclusion of all other persons, including the person granting the licence, to exercise a right which would otherwise be exercisable exclusively by the copyright owner.

    Source: Copyright, Designs and Patents Act 1988, s.92(1)Checked 3 November 2026Pending lawyer review

  • The author of a work is the first owner of any copyright in it. Where a literary, dramatic, musical or artistic work, or a film, is made by an employee in the course of employment, the employer is the first owner, unless agreed otherwise. A photograph is an artistic work irrespective of artistic quality.

    Source: Copyright, Designs and Patents Act 1988, ss.4 and 11Checked 28 October 2026Pending lawyer review

Draft a photography licence with this clause

Free for the other side

Lex drafts it in Plain English beside the legal wording. Share one link; both sides agree and sign.

Frequently asked questions

What does an intellectual property licence clause mean?

It is permission to use work the supplier still owns. It names the uses, the term and the territory. It does not transfer ownership unless a separate assignment in writing does that job.

How is a licence different from an assignment?

A licence is permission. An assignment transfers copyright. CDPA 1988 s.90(3) says an assignment is not effective unless it is in writing signed by or on behalf of the assignor. See /clauses/intellectual-property-assignment.

Does an exclusive licence have to be in writing?

Yes, to be an exclusive licence under CDPA 1988 s.92(1). It must be in writing, signed by or on behalf of the copyright owner, and it must exclude everyone else, including the grantor, from the named right.

What uses should an IP licence name?

Media, territory, term, and whether the client may sublicense or adapt. CDPA 1988 s.16 lists the restricted acts; the licence is permission to do some of them. Match the grant to the fee.

How should pre-existing materials be licensed?

Keep them with the supplier and grant a narrower licence so the client can use them as part of the deliverables. Do not let an exclusive grant of new work swallow the supplier’s tools, stock or libraries.

Sources

The legal wording governsLast reviewed 28 October 2026Pending lawyer review