Top 10 Tips for Negotiating Licenses
- Consider the type of licence that you are going to grant, e.g. exclusive, non-exclusive or sole licence and whether it should be limited by field of use and/or territory.
- Consider carefully whether the Licensee will be able to sub-license to a third party and on what basis.
- Consider asking a Licensee to enter into a non-disclosure / confidentiality agreement before disclosing any information.
- Have a clear licensing strategy as to who you are going to license to - consider whether you need to establish a clear advantage in the marketplace before licensing to competitors.
- Remuneration for a Licensor can be by way of a license fee or by way of royalties. Decide on what basis the Licensee will be expected to make payment.
- If you are providing a license of your technology consider if you will provide the Licensee with technical assistance and support and if you will charge for these services?
- Consider a clause dealing with ownership of any improvements in licensed technology.
Duration of licence - how long will the licence last?
- Ensure the licence agreement clearly sets out the circumstances in which the arrangement may be terminated and consequences of termination.
- Consult specialist accountants or solicitors for advice on the value of your Intellectual Property and the terms of the licence agreement.
[27/03/2009]
Please contact Virtuoso Legal Specialist IP Lawyers if you have any questions or require advice in any area of Intellectual Property (IP), Copyright & Patent Protection or Infringement, or Information Technology Law : ring 0844 800 8871 or 0113 237 9900. Your first 20 minute interview with one of our solicitors is free and at no obligation to you.