Technology and Licensing Agreements

Intellectual Property (IP) licensing is a frequently used means of exploitation of IP, including in the process of commercialization innovation. In today’s knowledge-based economies, the prevailing model of IP collaboration among business organizations is “open innovation”, based on licensing deals among various participating partners

Technology licensing only occurs when one of the parties owns valuable intangible assets, known as Intellectual Property (IP)

• Points technology Licensing during Agreements / Negotiations
  • Rights of IP ( know How) – Scope of Rights , exclusivity and protection
  • Assistance in using the IP (know-how), rights for future upgrades, versions.
  • Training
  • Manufacturing rights or capabilities
  • Distribution area ( Territory for products manufactured)
  • A license (consent) to use a patent or copyrighted material or trade secret (or other IP) that belongs to the other party
  • A license that will enable you to comply with a technical standard or specification
  • Indemnification against using IP ( Know How)
• Strategies for fixing Royalty Payment:

  The payment made by Licensee to licensor is royalty and it can be lump sum or on per unit also it can be hybrid model that part lump sum, some of the methods to finalise the royalty are :

  • The Cost method
  • The Comparable or Market method
  • The Revenue or income method

  There are still upper cap and lower cap defined, one protects the licensor and another to licensee

• Term Sheet for Licensing Agreement Negotiations:
  • What is your "first line" – Ideal position
    • This is for various terms such as licensing fees, training , rights and liabilities , etc
    • What could be other party’s response on your first line
    • Preparing arguments and previous cases in support of your first line
  • What is your ”Bottom Line” – below which you wont’s agree
  • Preparing internal term sheet highlighting terms agreed and position held but not concluded

• Our Experiences

  Having experience of negotiating for various IP services and technology licensing, we use method of term sheet which shall be prepared exclusively for your needs and addressing your issues. The drafting of IP products need experience in dealing in IP products.