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20249602
NEGOTIATIONS AND LICENSING
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Valuation and Negotiation of Technology
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valuation and negotiation of technology
alexander hernandez
valuation and negotiation of technology
Mapa Mental por
Alexander Hernandez
, atualizado more than 1 year ago
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Criado por
Alexander Hernandez
aproximadamente 5 anos atrás
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NEGOTIATIONS AND LICENSING
THE TEAM
It is unwise to negotiate on your own
It is best to appoint a small team
Decide on who will lead the negotiations
Include break-out time to review and discuss
leading the team must understand the corporate issues and the limits beyond which he cannot
NEGOTIATING
The process of negotiation is frequently informal and, typically, is not completed in a single meeting
More usually, the parties meet several times to discuss
The process begins with discussion on the main points that must be agreed and usually extends
It is important to avoid beginning negotiations with the exchange of a template licence agreement
THE TERMS
Licence Fee
A once-off non-refundable fee
Payment as a security
unique commercial opportunity
Recognition on the part of the licensee
Royalties
royalties are paid
in addition to the licence fee
the ‘25% rule’ approach is used
Setting the Royalty Rate
consideration must be given to the end-use or application of the product or
Set the royalty as a percentage of the profit
provides an incentive to the licensee
Minimum Royalty
expectation of achievable annual
based on this market forecast.
that the licensee will do what is necessary to take it to market as early as he can, so that the minimum
Resetting Minimum Royalties
licence agreement for renegotiation of the minimum royalty on reasonable terms, but cancellation of
discusses some approaches to negotiating commercial terms
HEADS OF AGREEMENT
Heads of Agreement – Licence
Parties
Start date
Duration
Nature of licensed IP
Work schedule
Costs
Lump sum/royalties
Payment schedule
Right of first refusal
Scope of licence
Exclusivity
Liability
Warranty on licensed patents
Ownership of IP
Ownership of improvements
Infringement
Termination
Choice of law
Dispute resolution
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