For a licensor, the most important step in licensing is conducting due diligence, which includes researching and developing the product before moving forward with a licensing agreement
. Also, clearly define what is being licensed and how the licensee can use the intellectual property
. Other important steps for the licensor:
- Clearly define the licensed property The subject of the license needs to be clearly defined so there is no room for ambiguity
- Territory and duration Specify the permitted geographic scope of the license, as well as the duration, to reflect the parties’ intentions
- Quality control The agreement should clearly define the licensor’s ownership of the licensed IP to ensure that it will not be misinterpreted as a transfer of rights. The licensor should generally maintain control over enforcement
- Legal counsel Consult with attorneys who specialize in intellectual property and licensing agreements
- Financial arrangements: Specify up-front fees and royalties
- Marketing: Assist in marketing activities
