Preparing to negotiate

Preparing to negotiate

1. Understanding of what you want from the agreement.

2. an effective negotiation.

3. have to have a proper work team.

   • as
     • Head of agreement
       • Guidelines for the process
       • Honest negotiation
       • Drafting of the contract
         • The term sheet
           • It is often useful for parties to exchange a sheet of terms before the initial negotiating meeting
           • Typically covers the main issues in a potential agreement in the form of a scheme, including
             • The Licensed product or process; Licensed territory; License fees and royalties; Technical information and training required to develop and manufacture, sell and service the Licensed product

4. Business Development Executive

   • is responsible for maintaining the moving negotiating process and verifying that the members of the group meet their assigned duties
   • is responsible for maintaining the moving negotiating process and verifying that the members of the group meet their assigned duties
   • Team Leader

5. Scientific or technical expert

   • Expert people who provide scientific and technological experience

6. Attorney Licensor,

   • who is often an experienced patent attorney, is responsible for committing the terms of the agreement, and the wishes of the parties, to writing

7. The cast team must evaluate their own position and that of the other party. To do this, steps could include

   • 1. Review the strength and breadth of patent protection to determine the proprietary position offered by patents
   • 2. Conduct a right-of-use study on potential commercial products to determine the value of patents and whether a license is required for any third-party patent (s);
   • 3) Review the development stage of patented technology.
   • In addition, the team must evaluate and determine the strengths of marketing, technical, sales and services of itself and the other party in the field of patented technology.

8. NEGOTIATION OF PATENT LICENSE

   • negotiation
     • The terms of a license agreement reflect the allocation of risk between the parts of the potential future development and the marketing of patented technology
     • Business plan
       • It must be fully developed, detailed to justify the provisions it seeks to reasonably estimate benefits and costs.
     • Market value
       • Market the value of a patent is a measure of the potential sale of products or services that use patented technology
       • In order to adequately assess the value of the patent, it is therefore necessary to determine the proprietary position (i.e. validity and applicability) and the competitiveness of the patent (e.g., minor improvement or pioneering rupture, market size and dynamism); and the existence, or lack of existence, of third-party patent rights related to technology
       • Profitability
         • the potential profitability of the licensing agreement and the contributions of each Party should be assessed. Therefore, all these elements should be considered by the parties when the terms of the agreement are determined.
     • Valuation approaches.
       • Cost method
         • The cost of developing or buying technology, although this does not reflect changes in the market or new information about the technology
       • Market method
         • The value is determined by evaluating the value assigned to comparable technology recently licensed, which requires determining which transactions are compared and obtaining current and reliable data.
       • Income method
         • Value technology for total estimated annual returns (Compare estimated income or savings that technology will likely produce at the estimated cost or savings of using another source), reflecting the baseline of what licensee can Pay.
       • Each of these methods, or a combination of these methods are often used by the larger licensees
     • Exclusivity and field of application of the license.
       • The exclusivity of the license refers to whether the licensor has authorized the invention/technology to multiple licensees, while the field of use is the circumstances for which the licensor has granted permission to make, use and sell the Patented technology
       • It is more advantageous for licensors to grant multiple non-exclusive licenses to promote the goal of fully developing patented technology.
       • Such non-exclusive licenses may be limited by the field of use to specific applications, geographical areas, and patent law (manufacturing, use, sale).
     • Payment Terms
       • There are several forms of payment that licensing parties can negotiate to compensate licensor for patented technology.