Once you have determined that a company is deemed, you can proceed with the terms of negotiation of the actual license agreement. In addition to the general conditions, you must include important conditions for agreements with foreign companies. These terms include: The license usually involves permission from another company to use patents, trademarks, copyrights, designs, and other intellectual property rights for a percentage of revenue or fees. It`s a quick way to generate revenue and grow a business because it doesn`t require manufacturing or sales. Instead, licensing typically means using an existing company`s pipeline and infrastructure in exchange for a small percentage of revenue. It is also important to understand and limit the time commitments that come with it from a creative and management point of view, and that the right person in the company is responsible for the international bachelor`s degree program. Aaron begins his article by noting that “too many business owners miss the opportunity to generate revenue and increase the value of their business by licensing their technology.” I fully agree with that, and it is especially true when it comes to international licences. I`ve seen too many companies spend a lot of money to take their companies overseas when they probably would have made more money and spent less and caused much less trouble if they had licensed their technology and/or brand name instead. In this article, I borrow a lot from what Aaron has already done, but I`m expanding it a bit to include licensing agreements more generally and focus a little more on international licensing. Aaron has a long history of successfully founding technology companies, investing in technology companies, and advising technology companies, both domestically and internationally. One of the most overlooked parts of a license agreement is the identification of a jurisdiction to handle dispute resolution. In most countries, the licensee can determine the place of jurisdiction and, if none is selected, the licensee`s home court will be used. It`s not the same in all countries, so it`s always important to err on the side of caution and choose a dispute resolution location in the United States.
No matter what you choose, it`s always best to choose a place that has the best laws to suit your needs. The effectiveness of a foreign licensing agreement often depends on the ability of the foreign company to meet the requirements of the agreement. Small businesses, which often lack the resources to search for foreign companies themselves, can use the services of government agencies such as the International Trade Administration`s Strategic Partnership Program to find qualified partners in other countries. The goal of this agency is to help small businesses improve their ability to penetrate foreign markets by working with trade associations and the private sector around the world. 5. Licensor has no risk of performance (however, if the License Agreement is based on Licensee`s sharing of revenues from the commercialization of the Technology, some risk of performance remains for Licensor). Aaron then lists the following licensing benefits: Key Information International licensing is an important way for a apparel company to increase profits and diversify revenue streams. A licensor can take advantage of its brand presence by expanding into new product categories and accessing new technologies, resources, markets and geographies. A well-designed international licensing strategy integrated into a written licensing agreement is a key tool in implementing a successful international strategic licensing program.
2. It can be complicated and risky to send or have foreign employees in certain countries. An international licensing agreement can eliminate or significantly reduce your need to send or have someone abroad. If the agreement does not work and the licensor wishes to terminate the contract before the end of the term, clearly defined termination provisions must be included in the contract. As with other agreements, the parties should be able to terminate the license agreement in the event of a material breach. In summary, in this mode of entry into the foreign market, a licensor in the country of origin provides limited rights or resources to the licensee in the host country. Rights or resources may include patents, trademarks, management skills, technologies and others that may enable Licensee to manufacture and sell in the host country a product similar to that which Licensor has already produced and sold in its home country without requiring Licensor to open a new operation abroad. Licensor`s revenues generally take the form of one-time payments, technical fees and royalties, which are usually calculated as a percentage of sales. 1. Brand Identity.
First and foremost, a apparel company that wants to become a licensor must consider whether an international licensing agreement will improve and enhance the company`s brand. Putting the trademark in the hands of a foreign licensee requires due diligence, as there is a risk of damage to the trademark. Licensing is a contractual agreement in which the company, the licensor, offers exclusive assets to a foreign company, the licensee, in exchange for royalties. Let`s say you can`t export to a foreign market because of complex rules and regulations, or because transportation costs are prohibitive. .
