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Pro
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A checklist that contributes to the negotiation of a licensing agreement, let alone the preparation and establishment of the agreement itself, may seem like a simplified instrument for an experienced negotiator or contract lawyer. After all, most people in such positions are well trained and accustomed to dealing with several projects that have a lot of detail in the scientific, legal and commercial arena at the same time. If they did not have the jurisdiction to handle this type of work situation, they would not last long in a high-pressure licensing environment. But it is precisely because of the innumerable details that a checklist for the licensee or lawyer who works can save lives (or dealer). Since most of the people involved in deal-making participate in multiple deals at the same time, important aspects can be forgotten or forgotten at any time and for each deal. One of the simplest ways to ensure that a decisive or costly error does not occur because of an error is to use a tool like the checklist presented here. With so many areas of negotiation for a licensing agreement, anything can cause problems. This is particularly the case when the lawyer who writes the license agreement uses too broad a language. Nevertheless, four areas are the probable causes of a licensing dispute: an example of a licensing agreement in the restaurant sector would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing equipment. And toy manufacturers regularly sign licensing agreements with movie studios and give them the legal authority to produce action characters based on popular similarities of movie characters. The licensing agreement should contain a language dealing with the issue of property disputes. What happens, for example, if someone challenges ownership of a trademark you have licensed? Or, what happens if someone plagiarizes the copyrighted work that is licensed? Both parties to the licensing agreement should agree on how to deal with these issues. The main problems are the same for licensees and licensees.

With an agreement, both parties understand the IP approach. Without one, the parties risk wasting time and money and the frustration of a failed business negotiation. Some licensees do not expect licensing guarantees in contracts. Others are asking for it.