Negotiations and Lisensing

Negotiations and Lisensing

1. Team

   • It is advisable to designate a small team to discuss the doubts about technology, manufacturing, legal, intellectual property and finance. In this way, to reach the the terms convenient for the company so that overlooked points do not affect the organization

2. Head of agreeement

   • These are a set of headings in which are expected to discuss and complete with their own words the decisions that have been reached to be recorded

3. The Terms

   • Licence Fee
     • This is a rate agreed upond by a technology that is not yet commercially proven and is that it is usuallly a commpensation for the achievements or successes tha is may have
   • Royalities
     • They are the rates that are agreed based on units, volume or weight of sales, the persentage of these will be agreed depending on an appreciation of the operating costs, the probable sale price and the net margin for de product of the licensed technolog
       • r

4. Negotiating

   • It is advisable to address each of the points of the contract individually to progressively reach an agreement between both parties
     • once an agreement is reached, both parties must sing a contractual agreement, this mainly seeks adequate compensations based on 3 elements:
       • Terms of exchange specified for the bargain
       • Something of value axchanged
       • Mutual exchange

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