Negotiating is about coming to an agreement for a long-term relationship with your licensing partners. The goal is to make it a win-win for both of you. You and your licensing partner should feel the negotiation is a win-win situation so it leaves you both motivated about the licensing deal.
Your negotiation actually begins once you make contact with your licensing partner. It begins with sharing information, and continues with back and forth discussions. Sometimes it’s a short process; sometimes it’s lengthy.
Before starting your negotiations, you must know what you want and what you’re willing to give on. Often times it’s best to use a third party, such as a licensing agent or attorney. They are more objective and have more negotiating experience. Most importantly they keep you out of trouble.
One of the best ways to learn about a successful negotiation is to be part of it. I did an interview with Andrew Berger, an intellectual property attorney with the New York firm of Tannenbaum Helpern Syracuse & Hirschtritt LLP. He’s a legal IP expert with lot’s of experience negotiating licensing deals.
As part of this interview, we did a quick role play. We are negotiating a deal for a new kids character, the Mighty Marshmallow Monsters. After the role play, we discussed the negotiation pointing out some of the key issues and how to resolve them.
Here’s what you’ll learn during this interview:
- Key terms for the licensing deal – you’ll hear our mock negotiation on product rights, distribution channels, and licensee capabilities.
- The benefits of using a third-party negotiator and why it’s a good negotiating tactic.
- Tips on Negotiating Strategies including asking the right questions, knowing when to walk and making the deal work for both partners.
The goal at the end of the negotiations is to walk away with a clear understanding of all the terms and a win-win agreement for both partners.