How to Survive Your First Licensing Deal
The 5 Biggest Licensing Mistakes and How to Avoid Them
Your first licensing deal is the most important. Get it right, and you’ll make a lot of money. But if you get it wrong, it can cost you a fortune. Find out how to avoid the biggest mistakes that cost you time, money, or worse, your IP rights.
- Why you have to make sure to do your homework about potential licensing partners and who they are.
- The right questions to ask and what good and bad signs you’re looking for in a good licensing partner.
- The tell-tale signs of whether things could “go south” with any potential partner.
- How to avoid the trap of getting excited to do your first deal and giving away too much so you can get the deal done.
- The 3 rights you must never ever give away recklessly.
- The importance of knowing what you will and won’t before you even start talking to potential licensees.
- Why schedules, benchmarks, and deadlines are critical to the progress of your deals.
- Why it’s a red flag if a potential partner says, “We’ll figure that out later” and what to do about it.
- Why some flexibility is important even though the agreement shows how things will happen.
- How to avoid partners using your IP in ways you haven’t approved.
- Why quality and approval procedures must be in place and regularly maintained.
- How to protect ownership of derivatives or improvements of your IP with licensing partners.
- Why you must keep track of your licensees’ activities.
- The 2 most basic royalty reporting requirements you must have – when they report to you and what they report to you.
- How deductions can bring your royalties to zero and how to agree on what deductions are allowed or not.