# Understanding Exclusive Design Licenses Design rights protect a product's appearance. A rights holder may use the design itself or authorize another business to use it through a license. Source: https://www.iplexlaw.co.kr/en/blog/1427879 HOME / NEWS & INSIGHTS NEWS & INSIGHTS Understanding Exclusive Design Licenses Design rights protect a product's appearance. A rights holder may use the design itself or authorize another business to use it through a license. Designs 2026.03.18 published IPLEX 5 min read Hello, this is IPLEX IP Law Firm. Design rights protect a product's appearance. A rights holder may use the design itself or authorize another business to use it through a license. An exclusive design license grants exclusive rights to exploit a registered design within an agreed scope. It can be important in manufacturing and design-licensing businesses. Today, we will discuss the concepts of exclusive design licensing, legal effects, setup registration procedures, and business utilization. What is an exclusive design license? An exclusive design license authorizes the licensee to work the registered design exclusively within a specified scope. The design owner may grant a third party the right to use the design, among other things, the exclusive license is the most powerful form of license. Within the scope of the exclusive license (region, duration, content), not only the third party, but also the design owner cannot carry out the design itself. In other words, the exclusive licensee will have a position to operate exclusively the product business utilizing the design within the scope set forth. The legal effect of the exclusive design license A registered exclusive license has a proprietary legal character beyond an ordinary contractual permission. Exclusive exploitation: The licensee may work the design within the registered scope, subject to the law and any other applicable rights. Direct Infringement Response: When a copy product mimics our design on the market, the exclusive licensee can claim the infringement and damages directly in his or her name without having to wait for the design owner's permission or cooperation. The exclusive design license must be registered to take effect. One of the most common misconceptions in business is that writing a contract only gives you the right to practice. An exclusive design license takes effect through registration with the Korean IP office. An agreement alone does not establish the registered exclusive right. Therefore, in order to take advantage of the exclusive design license, it is important to carry out the contract execution and setup registration process together. How to register an exclusive design license Required Documents 1. Application to register the exclusive license 2. License agreement or written authorization 3. Seal certificate of the registration obligor, issued within the preceding six months ④ Consent form, where a co-owner's consent is required registration fee Payment : KRW 72,000 per case Professional fees: Vary by firm. What you need to know when setting up an exclusive design license Design rights are directly linked to the product business, so you need to carefully design the contract structure. In particular, you need to check the following. 1 Clarity of the scope of implementation When establishing an exclusive license, it is necessary to clarify the elements of the implementation area, period, contents (manufacturing, sales, imports, etc.). Depending on this scope, the actual business areas may vary significantly. 2 Check the product range Design right is a right associated with a particular product. Therefore, you need to accurately identify the range of products to which the design applies. For example, the same design may vary in business structure depending on the product, such as electronics, household goods, and package design. Checking for 3 related designs (Important) Related designs protect variations associated with a principal design. Although separately registered, these rights are legally linked. Exclusive licenses for a principal design and its related designs must comply with the statutory requirement for coordinated licensing. For example: Basic Design → A Company Related Design → Company B This split licensing arrangement is not permitted under the relevant rule. If you want to set up an exclusive license, you need to set up the basic design and related design in bulk for the same licensee. Therefore, it is important to check whether the design is relevant before entering into an exclusive design licensing agreement. Business use of exclusive design license The exclusive design license is used in the industrial group where the appearance of the product is key: Exclusive production and supply structures: Use specific design products exclusively by specific manufacturers to enhance market dominance. OEM/ODM production protection: It is a safety device that allows brands to hold design right and give manufacturers exclusive license to keep their design products from being supplied to third parties. Design licensing business: If the design itself is a key asset, such as character goods, fashion designs, and household goods, then you can make money by assetizing it. Common misunderstandings in practice Examples include: Is signing an exclusive design license agreement enough? No. The exclusive license must also be registered. Does granting an exclusive license transfer ownership of the design right? No. Ownership remains with the design owner; exclusivity is granted only within the licensed scope. Can the principal and related designs be licensed exclusively to different parties? No. The principal and related designs must be licensed to the same exclusive licensee as required by law. Design-only licensing is a powerful system that allows you to operate your design-based business exclusively, beyond mere licensing. In particular, if you are planning a product design business or manufacturing licensing, it is essential to carefully design the scope of the rights and related design structures. If you need to set up an exclusive design license or design an exclusive design license structure, you can always talk to an expert. Read the Korean source This article reflects the information available when it was published. Contact us to discuss your circumstances. Discuss this topic ↗ All articles Related service: Designs & trade marks ↗ ON THIS PAGE What is an exclusive design license? The legal effect of the exclusive design license The exclusive design license must be registered to take effect. What you need to know when setting up an exclusive design license Business use of exclusive design license Common misunderstandings in practice TALK TO IPLEX Discuss your IP questions We consider your technology and business needs together. ↗ Contact us Newer Patent Practice: Examination Requests and Filing Strategy ↗ Older Understanding Exclusive Trademark Licenses ↗ Related insights Designs 2026.10.01 Design similarity in Korea: a concealed end face can still matter A railing-pipe dispute illustrates the importance of appearances during sale and installation, prior designs and functional features in assessing overall visual impression. ↗ Read article Designs 2026.09.30 Food-Container Designs: Giving Proper Weight to Features Already Known Korean Supreme Court decision 2024후11026 assesses design scope through prior designs and the overall impression of the remaining features. ↗ Read article Designs 2026.09.29 Hairband Design Validity: Explaining the Visual Effect of the Differences Korean Patent Court decision 2025허10530 distinguishes routine changes from features requiring a meaningful design contribution. ↗ Read article - https://www.iplexlaw.co.kr/en - https://www.iplexlaw.co.kr/en/blog/category/design - https://www.iplexlaw.co.kr/forum/view/1427879 - https://www.iplexlaw.co.kr/en/contact - https://www.iplexlaw.co.kr/en/blog - https://www.iplexlaw.co.kr/en/ip-solutions/trademark#related-insights - https://www.iplexlaw.co.kr/en/blog/1427879#section-1 - https://www.iplexlaw.co.kr/en/blog/1427879#section-2 - https://www.iplexlaw.co.kr/en/blog/1427879#section-3 - https://www.iplexlaw.co.kr/en/blog/1427879#section-4 - https://www.iplexlaw.co.kr/en/blog/1427879#section-5 - https://www.iplexlaw.co.kr/en/blog/1427879#section-6 - https://www.iplexlaw.co.kr/en/contact - https://www.iplexlaw.co.kr/en/blog/1427968 - https://www.iplexlaw.co.kr/en/blog/1427030 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1783 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1783 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1777 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1777 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1773 - https://www.iplexlaw.co.kr/en/blog/brunch-case-1773