Ten Tips for Negotiating a Licensing Agreement

August 6, 20130 Comments

negotiateNegotiating the licensing deal is where the rubber meets the road.  Do it right, and it creates a profitable partnership.  Last month, I started a new series of webinars titled Inside the Conference Room.  One of these upcoming webinars is Negotiating the Legal Terms of the Licensing Agreement.  Andrew Berger, an intellectual property attorney with the New York firm of Tannenbaum Helpern Syracuse & Hirschtritt LLP, was my guest and shared some of his great expertise and insight on how to negotiate the licensing agreement.

During the webinar, we discussed a list of 10 tips that you should keep in mind when negotiating a licensing agreement (Andrew provided this list on his blog listed below).

  1. The license agreement must be a win-win for both sides or it will not work.
  2. The more you don’t need to do the deal the more leverage you have when negotiating it.
  3. If your sales channel is the Internet you have global rights.
  4. Givers get; if you give exclusivity, you should get a higher royalty.
  5. Don’t enter into a license without an exit strategy.
  6. There is no one magic royalty number whatever the deal.
  7. Set a royalty by looking at what licensees are paying in comparable deals.
  8. The term of the license should allow the licensee a reasonable time to recoup their investment in the deal.
  9. Negotiate with respect to build trust.
  10. Take your time so that the license agreement creates a long-term, mutually beneficial relationship.

Check out Andrew’s blog at http://www.ipinbrief.com/.  You’ll find more information about Andrew’s areas of expertise and it’s a great resource for learning about the legal side of licensing.  You can contact Andrew by email at andrew@ipinbrief.com.

How to Negotiate a Licensing Deal – Free Webinar.  Sign up below.

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About the Author ()

Rand is President / CEO of Licensing Consulting Group, an intellectual property management and licensing company specializing in assisting clients in IP Management, Strategic Consulting, Acquisition of Licensing Rights, and Property Representation. Rand has licensed some of the biggest Hollywood blockbusters, including “Batman” and the “Mighty Morphin Power Rangers”, both of which generated billions of dollars in worldwide merchandise sales. He has lead various international licensing programs as both licensee and licensor, and through consulting projects focused on licensing strategy, brand development, sponsorship sales and property representation.

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