In a licensing agreement, who typically pays for the upfront fees associated with using the intellectual property?

In a licensing agreement, the licensee typically pays the upfront fees associated with using the intellectual property. This is because the licensee is the party that gains access to the intellectual property owned by the licensor and seeks to utilize it for their products or services. By paying these fees, the licensee secures the rights to use the intellectual property, which can include patents, trademarks, or copyrights. This payment serves as compensation to the licensor who is granting permission to use their valuable intellectual assets.

The licensor, on the other hand, is the owner of the intellectual property and stands to benefit from the fees and royalties paid by the licensee. It's common for the licensor to set the terms of the agreement, including the amount of the upfront fees and any ongoing royalty payments, but they are the recipients of the payments rather than the ones who would pay.

Third-party investors and contractors do not typically play a direct role in the payment of licensing fees unless they have a specific agreement with either the licensor or licensee to cover related costs, which is not the standard practice in licensing agreements.