Once your business develops its intellectual property portfolio, you may want to begin licensing some of that IP to build a new revenue stream. Unfortunately, IP licensing disputes can often lead to business litigation, if appropriate IP licensing safeguards are not put in place prior licensing.
How can it help your business?
IP licensing is done for a variety of reasons. It can help you grow your brand, software market share, your business itself or even launch new services or products. It can also help expand into global markets without the expense associated with such an expansion.
And, remember, your IP portfolio is likely more expansive than you think. It includes all of your trademarks, patents and copyrights. It can cover mechanical devices, products, services, computer software, electronic hardware and even business methodologies.
Determine if IP licensing is the right strategy
Before you begin licensing anything within your Huntington Beach, California, business’s IP portfolio, you first need to figure out if IP licensing is right for your business. What are you trying to achieve? Why do you want to license your IP? Is it just to create a new revenue stream, make some of your IP a standard in the industry, increase your brand’s reach, etc.? There are many reasons to license parts of your IP portfolio, but figure out if you should first.
Once you determine your goals, you can begin to craft your Huntington Beach, California, licensing strategies. Think about how you want to monetize your IP. You can charge a lump sum fee, a royalty or a recurring fee associated with the IP use. You will also need to determine how long the license will last (the license’s term). This can be whatever timeline the parties deem appropriate. Next, where will the license apply, like what territories will the license allow the IP use (state, regional, national, international, etc.).
Now, think about the type of license and whether it will be exclusive or non-exclusive. You will also need to decide the scope and rights of the license. Can the IP be reproduced, distributed, modified, adapted, etc.? And, can the license be assigned/sold?
Do not forget consequences
When you have your California IP licensing attorney draft your licensing agreement, do not forget the consequences. You need to write into the agreement what happens if there is an infringement, which laws govern and how disputes are resolved. In addition, an indemnification provision can ensure that the bad acts of your licensee will not be imputed onto you.