If you’re considering allowing others to use your intellectual property that’s subject to a licensing agreement, it’s important for you to make certain that the agreement will not decrease the value of your property. Using boilerplate agreements is not a good idea. If you do so, you run the risk of compromising the value of your property.
When you craft a licensing agreement that is tailored and personalized, you can maximize the value of your intellectual property. You’ll want to analyze how large the potential market is in your licensing transaction. You’ll also need to determine compensation, including whether you should receive a flat fee or royalties. The answer to that will depend on the type of licensing transaction and intellectual property you’re working with.
Other concerns that should be addressed and personalized include the limitations of the licensing agreement, which may include assigning rights of use in specific territories. You’ll need to determine how long the terms of the licensing agreement will last as well as whether or not to include sublicensing agreements. Finally, determining whether or not a license can be terminated because of inefficiency and the inclusion of an indemnification clause are other things to consider.
At the law firm of Benjamin Appelbaum, Mr. Appelbaum regularly helps his clients to tailor licensing agreements that meet the needs of their intellectual property types. Mr. Appelbaum works to maximize his clients’ intellectual property values while protecting their interests. If you have intellectual property and are considering licensing it, you might want to learn more on our page about licensing intellectual property to maximize value.