Your business may be taking off, but when there are opportunities open to you, you still need to be cautious. With your intellectual property, you must be careful not to give away too much too soon. It’s beneficial to license your intellectual property so that you can keep it safe while lending it out to another business.
Licensing a product is an excellent choice because it allows you to keep control of your intellectual property while also allowing others to use it in specified ways. In a licensing agreement, you will go over how your intellectual property may be used by a license holder.
What should you discuss in your licensing agreement with a licensee?
Some of the key points of that agreement may include:
- The scope of your agreement and which rights the license owner (you) are selling to the licensee
- Care and control of your trademark
- The cost of the license as well as other costs, such as the fees needed to maintain the intellectual property
- Exclusivity agreements that limit the use of the license to specific individuals or companies
Whether you have licensed out a product in the past or not, it is wise to build a contract that protects your property and preserves it for your own use. Not taking the time to review licensing agreements or to adapt them for each licensee could be damaging to your business. Alternatively, getting the right licensing agreement in place could be a key element in your company’s success, making it easier to build connections with other licensees and to grow your business’s value.