Ten Tips for Negotiating a Licensing Agreement

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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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 run the gamut from 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 number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges and startup events. He’s a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.

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