As a licensor, you will be expected to provide the legal agreement that will ensure both parties are fully aware of their respective rights and responsibilities, over and above simply determining royalties. Good legal advice is usually required to negotiate such things as:. Determining an acceptable royalty rate for a product is difficult, as there is no quick-fix percentage that can be applied as a general measure.
If you are an inventor and wish to approach a large company with your invention, you may find that they have very specific policies on how they will consider unsolicited proposals. Your first response from them will usually be to spell out the terms and conditions of their corporate policy on submissions. Click on one of the two buttons to access the content you wish to view. COVID Remote personalized support Our physical offices are closed, but our advisers remain at your disposal to help you plan the resumption of your activities.
Factsheet Product licensing Share on:. Why would a company look for products it can produce under license? What are the advantages of licensing? What are the disadvantages of licensing? How does a company search and find products that may be available for licensing? What is the procedure if you or your company has a product to license to others? You get access to the experience and know-how of the company that developed the product.
This company may be much larger than yours, with development capabilities that you cannot afford. You get to break into a new market with this new product, but with the benefit of the experience gained in another market. It makes competition easier if you're a small company with limited resources. You minimize your costs and risks:. The license agreement is normally for a considerable period of time and there may be an annual minimum royalty required.
New technology may become available making the licensed opportunity obsolete. The agreement may force the licensee to accept restrictions on its marketing. Should the licensee fail to meet their obligations, the licensor has the right to terminate the agreement. This action is typically avoided at all costs, however, since the termination of a merchandising license agreement can result in a loss of income and missed opportunities to capitalize on the property by the licensor, and the waste of an often-substantial investment by the licensee.
Both the licensor and the licensee can benefit from the establishment of a merchandising licensing agreement. These agreements can grant exclusive rights to the licensee, or be nonexclusive and have restrictions on geographic markets or the right of licensee to grant sublicenses. Manufacturing license agreements are actually similar to most licensing agreements that transfer intellectual property rights between parties. Fair use supports "socially laudable purposes," typically, if not exclusively, involving the use of the copyrighted work by a second author.
Sign Up for our free News Alerts - All the latest articles on your chosen topics condensed into a free bi-weekly email. Register For News Alerts. Article Tags. NOV Securitisation Outlook and Key Tax Updates for More Webinars. Alternative Investment Funds.
Artificial Intelligence. Aviation Finance. Aviation Regulation. Mondaq Advice Centres. Arbitration, Litigation and Conciliation. More MACs. More filters. Please Login to Mondaq or Register for unlimited free access and a complimentary news alert. News Alert. Login to Mondaq. Not registered? Register here. Why Register with Mondaq Free, unlimited access to more than half a million articles one-article limit removed from the diverse perspectives of 5, leading law, accountancy and advisory firms.
Articles tailored to your interests and optional alerts about important changes. Receive priority invitations to relevant webinars and events. Your Organisation We need this to enable us to match you with other users from the same organisation.
Already registered?
0コメント