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Thursday, 12 March 2015 00:25

30 Seconds on Licensing

Written by Super User
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Licensing is giving someone else the right to make, use and/or sell your intellectual property (IP). You will see this in music, art, inventions, etc. Generally it is in exchange for a royalty rate and may include an advance dollar amount against future royalties and minimum sales requirements for exclusivity. It is not the same thing as selling your invention outright because you still own the IP, you are only allowing others to make and sell it and pay you for that privilege.

General terms include:
Royalty % (based on Net Sales)
Advances (a $ amount up front)
Minimums (dollar or volume based)
Term (how long will it last)
and traditional conditions

Message me if you would like more information.

Last modified on Wednesday, 08 April 2015 19:09

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