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Licensing Agreements: The Art of Obtaining the Right Terms

Intellectual Property FirmsOften intellectual-property owners are either unable to utilize their IP effectively to its fullest extent, do not have the know-how or the required resources for development, or do not have access to the appropriate market channels -challenges to executing any IP strategy. While assigning (or selling) IP rights to another party is also an option, the IP owners may find it difficult or impossible to find a buyer willing to pay the demanded price for their IP. To fully realize the potential value of one’s intellectual property, many opt for licensing it to one or more parties who will in turn utilize it in the exploitation of goods and services. Intellectual property firms specialize in handling such agreements.

 

While the main reason for licensing remains creating revenue, it provides the property owner with other advantages, such as entry into new geographic and product markets. No matter what the motivation for licensing is, the execution of well-drafted licensing agreements boils down to the art of obtaining the right terms in negotiations. For example, royalty-stacking arrangements and M&A transactions involve complex issues which enable important strategic terms, beyond the remuneration component, to be built into the agreements – leveraging a party’s position. Many contracts suffer from the lack of attention to such terms.

 

FlashPoint IP, a leader among intellectual property firms, provides legal expertise with an emphasis on technology law and IP strategy which spans an array of licensing-agreement types and term-sheet definitions, focusing on the client’s goals with an eye for strategic positioning. Contact us to take control of your contractual rights and obligations.