Business litigation often occurs over contractual disputes or handshake deals because there is some confusion on terms or deficiency in the contract. Of course, even perfect contracts can lead to disputes, but perfect contracts have much less likelihood of litigation. This is why your intellectual property licensing agreement can make all the difference in avoiding business litigation.
The benefits of licensing
Many Albany, New York, businesses that have patents, trademarks and copyrights in their IP portfolio want to use those to expand their revenue streams. However, IP licensing can do much more than just make your business more money immediately. IP licensing can actually be used to expand your business into new markets, launch new products and grow your business and brand.
The licensing agreement
First, make sure your licensing agreement is in written form and not a handshake agreement. Both parties should negotiate to achieve their respective goals, but keep in mind your business’s ultimate goals to ensure that the ultimate IP licensing agreement meets your goals. And, if you cannot meet those goals, it is okay to walk away.
What to include
The licensing agreement negotiations should include the cost, term, territory, license type, the rights included in the license and whether anything within the license or the license itself can be assigned or sold. In addition, it should include what happens if the license is violated, including how disputes will be resolved and indemnification provisions, in case the licensee incurs third-party liability.
Help is available
Of course, Albany, New York, business owners do not need to do all of these negotiations alone. There are IP licensing attorneys who can help.