Thank you to all who attended last weeks Med Tech Licensing Workshop. We had an interactive morning with lots of questions and answers.
The presentation covered all the essential steps to successfully licensing a med-tech IP – from finding the right partners, how to contact them, what to say (what not to say), how to get the best royalty rate, key mistakes to avoid and much more.
Here’s a summary of what I discussed during the workshop:
How the med-tech industry is changing and why licensing is a great strategy for this market. Med-tech is one of the fastest-growing industries but it’s also an industry with lots of competitive challenges. The presentation covered 5 of the biggest challenges including shorter technology lifespans, the rapid increase in new patent filings, big non-traditional companies moving in, complex product development, and the growing infringement risk from patent trolls.
I also covered why many of the biggest med-tech companies are actively looking for new IP and why this is a great licensing opportunity for startups.
We dug into the details of licensing by starting with one of the most important questions – when is the right time to license your IP. I covered the best stage to start the licensing process and what is required to be successful. From there, I discussed the difference between a license and licensing (hint: one is a contract), and the key steps in the licensing process.
You’ve got options when licensing your med tech. We discussed the four ways to license IP rights, as well as some strategies for how to license your IP rights. We took a look at one case study example of selling direct to a core market and licensing out to other markets.
Then I shared one of the most important and often overlooked steps in the licensing process – validating the IP – and what this requires. It’s the piece of the licensing puzzle that makes the difference between getting a deal or stalling in the market.
Finding a licensing partner is challenging, and I shared some tips and strategies for researching potential partners. But that’s only half the challenge – the other half is getting through to a company, especially if it’s a big company. Several people shared their IP and we spent some time discussing different ways to pitch their IP to potential licensing partners.
We then turned our attention to the money side of licensing – how to get paid. I discussed the difference between high and low royalty rates, and how they change at different stages of IP development. That led to the three most important points to keep in mind when negotiating a licensing deal, and a shortlist of what goes into the licensing agreement.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges, and startup events. His first book, Hidden Wealth: The Money Making Power of Licensing was released in 2019 and is available on Amazon.com. He’s also a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.