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Important steps when negotiating licensing agreements

On Behalf of | Sep 1, 2021 | Contracts

Negotiations begin as soon as someone else shows interest in your idea or invention. Every major deal in Michigan must be written down in a formal agreement. Negotiations are made and continue for as long as necessary to help you get the fairest deal.

Make sure it’s the right type of agreement

One of the first steps is to choose the correct type of licensing agreement. Patent licensing is for inventors who want exclusive rights to their inventions. A trademark license protects brand names, logos, and slogans from being used by other people and companies. The first step is to select the most effective types of contracts to make from the beginning.

Make sure it’s the right type of company

Next, become familiar with the types of companies that show interest in your intellectual property. Look for reputable companies that have a good track history of working with inventors, partners, and customers.

Put yourself in the other party’s shoes

When negotiating a contract, consider the way it looks from the other party’s perspective. Put yourself in the business owner’s shoes to see if your sales pitch sounds appealing. Write down the points that you need to clarify or elaborate. Avoid making a speech that is too vague or too long, and continue to improve on your persuasive methods.

Take your next steps wisely

Inventors, artists, and entrepreneurs are frequently required to accept and sign licensing agreements. This type of agreement is made to prevent lawsuits, but if it’s made incorrectly, you could get into a legal dispute over the validity of the contract. Whether you consult a lawyer or not, use the greatest amount of caution when negotiating a licensing agreement.