Licensing your intellectual property allows you to contribute to innovation in a broader sense by allowing others to access your ideas and innovations, and it helps you earn more money on your own innovation. Navigating the world of an intellectual property license is difficult, as you want to strike a balance between your interests and branding your property as something others want to license. Keep these tips in mind as you begin to license your intellectual property.
Be a cop
Individuals and organizations commonly, and unintentionally, misuse the intellectual property of others. You need to be aware of unapproved use of your property. Watch for people who violate your patent, and follow up with an order. Maintain a watchful eye of new products and innovations in your sector to insure the protection of your intellectual property. If you allow people to use your innovation without a license, you set a precedent. Speak with an attorney immediately if you suspect infringement.
Be picky
When choosing to whom you allow a license, you are creating a relationship. An organization uses your property for a good or service, and the success of that product determines your success. License to those that you believe have a workable concept and will be successful. Selectively choose your licensees to create a portfolio of strong organizations that support the same vision of your intellectual property. Ultimately, the way in which an organization uses your intellectual property is up to you.
Negotiate the contract
Go over a licensing contract carefully with an attorney. Research price points and determine the type of payment you want. A company can pay you in one initial installment or there can be a contractual cause that links product revenue to payment. Negotiate which you prefer based on projected sales and other factors. Maintain flexibility throughout the contract process. It is normal for companies to want to alter the contract. Look over these details with an attorney to determine if changes are advantageous to you.
Licensing can be a way to allow others to use ideas your company already maintains, or it can allow you to pitch an innovation for licensing so that other companies can create your innovation. An intellectual property license gives an entity the right to use your patent under conditions outlined in a contract. The entity that you choose shapes the brand of your innovation and its success
