Exclusive vs. Non-Exclusive Rights

Licensing Agreement

When should you consider licensing Exclusive rights vs. Non Exclusive rights?  The answer is it depends.  There are no “standard” business terms…each deal differs by the variety of different terms and the development stage of the intellectual property. Exclusivity grants the licensee (IP renter) exclusive rights to commercialize the IP.  If there is still some IP or market development required, then Exclusive rights to the IP may be the best option.  On the other hand, if the IP is a breakthrough technology or there are multiple market ready opportunities, then non-exclusive may be the best approach.  Or there may be an opportunity for a hybrid Exclusive/Non-Exclusive situation based on achieving certain milestones.

Would you like to learn more about structuring a licensing deal?  Licensing Consulting Group offers a 4 hour Licensing Mastery audio seminar that will teach you about negotiating and structuring licensing deals as well as provide you with sample licensing agreements.  Please visit our online store at www.shop.licensingcg.com.

Rand Brenner Author
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience includes medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the Mighty Morphin Power Rangers. Rand is a featured speaker on licensing at investment conferences, trade shows, colleges and startup events. He’s a published writer with articles appearing in several prestigious trade magazines. Rand also mentors at Cal State Fullerton Business School and is a judge for their startup business plan competitions.

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