LICENSING STRATEGY
The licensing approach used by smart inventors is based on partnering, not negotiating. We were the first to expose the partnership approach approach over ten years ago in our From Patent to Profit seminars.
This licensing approach has produced millions, even billions in licensed sales. Here are just a few of the innovations licensed applying our partnership approach.
It is interesting to see others trying to adopt our approach since its conception. Even invention promotion companies try to incorporate our knowledge and terminology into their websites and literature to try to make themselves look good. That shows how original they are.
Foremost in a licensing strategy is whether the license will be exclusive or non-exclusive. If it's exclusive, what are the terms and conditions? Some key points to consider are:
1. How long will it be exclusive?
2. What performance guarantees must the licensee give?
3. What costs will you bear?
4. What competitive response will this cause?
There are several other considerations as well. For example, would you lower the royalty rate if the licensee paid your associated costs? What if the licensee is willing to defend the patents in the event of a court action? Frankly, properly approached by you the licensee, the defense of your patents can be turned into a profitable opportunity for a licensee.
Don't find yourself lost at sea. Zero-in on a sound licensing strategy by applying sound principles to obtain strong patent protection. Without it, there's probably not much to license. It should also include other forms of intellectual property such as trademarks and copyrights. Trademarks usually have more value than patents over time. Unlike patents that expire in 20 years, trademarks may be indefinitely renewed.
The chief focus of most licenses is on sales, not manufacturing. That's what you want. Sales generate income, which in turn pays you royalties. Nothing happens until sales are generated. Finding the right marketing partners as licensees should be your chief objective. Source
This licensing approach has produced millions, even billions in licensed sales. Here are just a few of the innovations licensed applying our partnership approach.
It is interesting to see others trying to adopt our approach since its conception. Even invention promotion companies try to incorporate our knowledge and terminology into their websites and literature to try to make themselves look good. That shows how original they are.
Foremost in a licensing strategy is whether the license will be exclusive or non-exclusive. If it's exclusive, what are the terms and conditions? Some key points to consider are:
1. How long will it be exclusive?
2. What performance guarantees must the licensee give?
3. What costs will you bear?
4. What competitive response will this cause?
There are several other considerations as well. For example, would you lower the royalty rate if the licensee paid your associated costs? What if the licensee is willing to defend the patents in the event of a court action? Frankly, properly approached by you the licensee, the defense of your patents can be turned into a profitable opportunity for a licensee.
Don't find yourself lost at sea. Zero-in on a sound licensing strategy by applying sound principles to obtain strong patent protection. Without it, there's probably not much to license. It should also include other forms of intellectual property such as trademarks and copyrights. Trademarks usually have more value than patents over time. Unlike patents that expire in 20 years, trademarks may be indefinitely renewed.
The chief focus of most licenses is on sales, not manufacturing. That's what you want. Sales generate income, which in turn pays you royalties. Nothing happens until sales are generated. Finding the right marketing partners as licensees should be your chief objective. Source
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