Tips On Licensing Agreement
Perform your due diligence before the agreement. Both parties should conduct a thorough review of the other party. Check trade credits and management resumes. Ask for financial statements. Visit the offices and production sites of the other company. Everything you need. Normally, the theme of a license is that the licensor is passive and receives only license payments, while the licensee participates in the operation or development and is free to use it as long as royalties are paid and other criteria are met. Failure by licensee to comply with the license agreement usually results in termination of the license and payment of damages to the licensor. If you`re new to licensing life and have never negotiated a contract, I highly recommend hiring someone to help you.