The Benefits of Getting a License Agreement for Your Business The Benefits of Getting a License Agreement | Page 5

However, perhaps the major downside to this agreement is the threat to confidentiality. When you give someone the right to your business you may have to share some production secrets or strategies. This puts the company in the position of getting disclosed as no one can vouch for one of their employees breaking the confidentiality. Although these situations can be avoided if you negotiate well and devise a fool proof, loop hole free contract.