B2B Licensing Agreements

If this sounds like you, then you may be better off using a licensing model than a traditional business model for marketing your intellectual property. Licensing weighs on the marketing of your IP on the shoulders of another. So what is it, exploitation or licensing? You are the only one who can decide because you know your strengths, weaknesses, skills and talents better than anyone else. If you are primarily an inventor or developer and you don`t care about running a business that requires capital, risk and management, then a licensing model might be your choice. We have significantly simplified this process to provide a complete overview of how licensing works. In practice, you need to think a lot about the evaluation of potential licensees and the structure of your licensing agreement. You should always have B2B (business-to-business) agreements. No matter what service you offer to other companies, whether in person or online saaS, a B2B contract protects you in a way you can`t imagine. A licensing model allows technology manufacturers to monetize their new technology products by licensing them to other companies so they can be integrated into a finished product. Some licensing agreements include a single pre-licensing fee. Other agreements may include recurring licensing fees or monthly rental payments. What about current maintenance costs? In the licensing model, an inventor develops an innovation and then protects that innovation with a patent, copyright, trademark or trade secret, thus creating intellectual property. The inventor – the owner of the intellectual property – then granted the innovation or technology license to another party whose responsibility is to commercialize the innovation.

In compensation for the fact that another party may use its intellectual property, the licensee receives a royalty. Imagine a licensing partnership as an effective way for both parties to cooperate in selling to the consumer. The licensee usually has a largely successful brand, but no product to make or sell. Similarly, the licensee manufactures/distributes products, but may not be aware of the brand. Together, they can reach a whole new group of customers and participate in profits.

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