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How do you structure a licensing deal?
Know your stuff. Know the downside. Present like a pro. Get it protected. Submit smart! Analyze your targeted licensee. Don't reinvent procedures. Find a champion.
How do you structure a licensing agreement?
Download a template for a licensing agreement. Choose your role as the licensor or licensee. Define the license(s) in the agreement. Decide whether the license is exclusive or not. Settle the matter of fees and payment schedule. Add a renewal date and rules.
What is a typical licensing agreement?
A licensing agreement is a legal contract between two parties, known as the licensor and the licensee. In a typical licensing agreement, the licensor grants the licensee the right to produce and sell goods, apply a brand name or trademark, or use patented technology owned by the licensor.
What are the various licensing arrangements?
The most common types of licensing agreements include technology (patents), trademarks (merchandise), copyright and trade secrets (know-how). Sometimes these agreements include more than one type of IP. The common forms of patent licenses include exclusive, non-exclusive, and cross-licenses.
Why would a company use a licensing agreement?
In other words, a licensing agreement grants the licensee the ability to use intellectual property owned by the licensor. Licensing agreements are commonly used by the licensor to commercialize their intellectual property.
How do you negotiate a licensing agreement?
Do your homework. Before you begin negotiating, you need to understand your licensee's business. Start with a term sheet. Manage your expectations. Be patient. Have a win-win attitude. Don't lose your sense of humor. Remember to hold something back. Put yourself in their shoes.
How do you negotiate a royalty agreement?
File a non-provisional patent application or have an issued patent. Establish proof of demand. Pull-through marketing. Manufacture and sell the product first. When negotiating, ask the company first instead of throwing out a number.
How do you negotiate a software license agreement?
Don't pay for maintenance or support before you need it. Don't use NDA's for data security. Don't buy or rely on useless SaaS escrows. Don't let the exceptions swallow your IP indemnity. Include, read, and edit specifications (even if you're IT-illiterate).
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