ND — MidwestEmployee-FriendlyHigh Risk

Licensing Agreementin North Dakota

A contract granting one party the right to use another's intellectual property — including patents, trademarks, copyrights, or trade secrets — under defined terms. North Dakota's employee-friendly legal climate creates specific considerations for LicA drafting and enforcement.

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Legal Climate

Employee-Friendly

Non-Competes

Restricted

Governing Law

Uncommon

Key City

Fargo

North Dakota Contract Law

Key Legal Fact

North Dakota prohibits non-compete agreements for employees under ND Cent. Code § 9-08-06.

Notable LicA Law

ND's ban is one of the oldest in the nation and applies to nearly all employment non-competes.

Key Clauses to Review

1

Scope of License Grant

Requires North Dakota-specific drafting under employee-friendly legal standards.

2

Royalty Calculation and Audit Rights

Requires North Dakota-specific drafting under employee-friendly legal standards.

3

Improvements and Derivatives

Requires North Dakota-specific drafting under employee-friendly legal standards.

⚠ Common Issue

Licensee improvements reverting to licensor without compensation

Major Industries in North Dakota

AgricultureEnergyHealthcareTechnology

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