What is licensee buyout addendum?

A licensee buyout addendum is a contractual provision that allows a licensee to purchase the rights to a licensed product or service from the licensor before the license agreement expires. This addendum typically outlines the terms and conditions of the buyout, including the purchase price and any necessary approvals. It provides an option for the licensee to gain full ownership, often to enhance control over the product or to avoid ongoing royalty payments.