NEGOTIATIONS AND LICENSING

NEGOTIATIONS AND LICENSING

1. The purpose of any licensing negotiations is for both sides to identify clearly what each wants from the commercial arrangement they intend entering into

   • The objective is
     • achieve a result, where each side is clear about what is happening
       • It is essential that:
         • the licensor understands the requirements of the licensee
           • identify and clarify how technology meets the needs of the licensee
         • The license holder must have
           • a potential commercial appreciation of the technology
             • be able to convince the licensor that he has the ability to fully exploit it
               • THE TEAM
                 • It is better to designate a small team, which can be only two people to address the points in:
                   • technology
                   • manufacturing
                   • legal
                   • intellectual property
                   • finance
                   • It is important to identify colleagues, and any consultants, believe that they should participate in the negotiations and develop a clear role for each one in the discussions
                     • NEGOTIATING
                       • The process of negotiation is frequently informal and, typically, is not completed in a single meeting
                         • When they decide to enter
                           • A formal license agreement, specific team members with a combination of technical and legal experience is presented on both sides to complete the agreement and to sign a formal agreement.
                             • THE TERMS
                               • Licence Fee
                                 • The license fee is usually a fixed fee that all licensees pay.
                                   • for an unproven product or technology that is not yet commercially proven and that requires further development by the licensee, the license fee is often a result of negotiation and can be agreed in several alternative ways
                                     • Royalties
                                       • they are paid in addition to the license fee. They are generally based on a unit, a volume or a weight of sale
                               • HEADS OF AGREEMENT
                                 • are a set of bullet point headers, under which it is expected that
                                   • the parties discuss
                                     • complete in your own words
                                       • the decisions they make.
                                         • That is the task of the interim lawyers, to whom the jointly agreed Chiefs will be Passed to draft a formal legal agreement that reflects the planned interaction between the parties