Find out why it’s important to know what you want before starting the negotiation, what you’re willing to give on, how to get the best terms, and some key mistakes and how to avoid them. Plus you’ll get answers to your specific negotiating questions.
1. The license agreement must be a win-win for both sides or it will not work.
2. The more you don’t need to do the deal the more leverage you have when negotiating it.
3. If your sales channel is the Internet you have global rights.
4. Givers get; if you give exclusivity, you should get a higher royalty.
5. Don’t enter into a license without an exit strategy.
6. There is no one magic royalty number whatever the deal.
7. Set a royalty by looking at what licensees are paying in similar deals.
8. The term of the license should allow the licensee a reasonable time to recoup its investment in the deal.
9. Negotiate with respect to build trust.
10. Take your time so that the license agreement creates a long-term, mutually-beneficial relationship.