There is a lot of work involved in getting a licensing agreement with a company that is going to put your invention on the market and pay a royalty on each one sold.
Licensing Presentations
Once a new product is presentation ready, Davison focuses on presenting the product to a corporation with the intent to secure a licensing agreement. Davison informs you of what company we will be promoting your product to and obtains your permission before telling anyone about what you have conceived and what Davison has developed.
Licensing a new product does not guarantee that it will make its way onto a store shelf, but it is a step in the right direction. Getting in the door requires preparation. We find companies that want to see new products and use the developed materials to try to raise their interest. Companies have to keep updating their product lines, if they want to compete.
If a company licenses a product, it is common business practice for the arrangement to be recorded in a document that all parties can sign and retain. This document is normally a license agreement, which is a written understanding between two or more parties concerning the new product idea.
License Agreement Negotiations
A license agreement provides a clear understanding of the obligations of each party and it also serves as proof of what is owed to each of the parties. Once all parties agree to the terms and sign the agreement, each party receives a copy of the agreement for their records. If at any time there is a dispute between the parties, they may rely upon the license agreement as a statement of their rights and obligations.
Below is a list of terms and conditions that are generally included in the outline of a license agreement:
- Parties to be included in agreement: (Referred to as the licensee and licensor)
- Description of idea
- Territory rights
- Intellectual property rights
- Grants
- Obligations of licensor
- Obligations of licensee
- Termination
- Payments
- Quarterly statements
- Books and records
- Independent parties / indemnification
- Confidentiality
- Notices
- Construction
- Sub-licenses, assignments
- Parties to be included in agreement: (Referred to as the licensee and licensor)
- Description of idea
- Territory rights
- Intellectual property rights
- Grants
- Obligations of licensor
- Obligations of licensee
- Termination
- Payments
- Quarterly statements
- Books and records
- Independent parties / indemnification
- Confidentiality
- Notices
- Construction
- Sub-licenses, assignments
Davison’s licensing team has the knowledge and experience to successfully negotiate license agreements with manufacturing companies. Licensing is a tough undertaking. You are asking a company to put their working capital on the line to manufacture and distribute a product and the typical project is not licensed.
We recommend that you request information here and we will send you an information package about how to get your idea started.
