Licensing-for-use agreements can be a boon for business, but owners of the related intellectual property can maximize their earnings with careful consideration of how these contracts are worded. Drafting a strong licensing contract could offer better protection for your intellectual property when it’s sold for other companies to use and maximize your benefits in licensing that IP (intellectual property).
Trademark licensing creates billions of dollars in revenue for companies every year. You could experience this same advantage from sharing patents, copyrights and trade secrets. But the terms of licensing agreements can cover much more than your cut of the profits. The deal you draft could also lead to stronger protections when it comes to defending your IP.
Allowing growth through licensing
You can license your IP in other countries where you are eligible for legal protection, and you can set the terms of the deal. This eligibility allows you to gain more secure footing in the licensing and control of IP where you might not have been able to before.
Increasing your reach in contracts
Expanding the scope of your IP contract could expand your protections to include:
- Control: Forging a deal could give you control over companies that might otherwise be competitors. Your agreement can set guidelines that outline where they can manufacture, how they can apply your IP and what innovations they can make.
- Reach: Some companies may only maintain a patent if you manufacture in their location. If your company isn’t equipped to expand into those markets, licensing to companies that are already set up to manufacture in those countries might be a more efficient way to meet local production standards.
- Secrecy: You want your trade secrets to stay out of the public eye. So, instead of having another company recreating your inventions, you could let them use some or all of your IP while maintaining confidentiality.
Licensing IP isn’t only about growing your profits. The contracts you create you could help you protect your intellectual properties in ways that weren’t initially covered.