Successful commercialization licenses are more than just pieces of paper. They are long-term agreements and require good business relationships that will last a long time and can weather future challenges. They have to make good business sense for both the licensor and the licensee.
Understanding how prospects perceive value will help you gauge their true interest in a potential deal. Just because you’ve designed a cool widget doesn’t mean somebody out there is willing to invest in commercializing it. Potential licensees will be interested only if the technology delivers meaningful value for their company. For the best results, licensing managers should be able to identify the key factors that influence prospects’ decision-making processes — a good bit of which is already on hand if a market-based assessment of the technology was conducted.
There’s no substitute for being prepared as you head into negotiations. I explain further in our new “Why Prepare for Licensing Negotiations” webcast, which also includes tips for the kind of research you should conduct in advance. (The webcast is free — all you have to do is register.)
Throughout the process, you should be constantly making sure the prospect understands and appreciates the value of your technology. If you don’t prepare, you run the risk of jeopardizing your position. Trust me on this, the prospect will be prepared.
This webcast is excerpted from a new webinar we’ve released to help licensing managers build an effective negotiation strategy. Valuing the Deal: Working the Negotiating Table to Your Advantage provides practical advice that will help licensing executives prepare for and negotiate successful deals. This 80-minute webinar supplies negotiators with strategies for providing a clear view of goals and alternatives, setting limits and boundaries, and expressing information in a format that is easy to understand and can be persuasive to the other side.
Also included in the webinar are our recommendations on issues such as:
- Key components of a typical license agreement
- Fee structures
- Reporting responsibilities
- Subcontracting issues
- Creative ways to solve communication challenges
We have years of experience helping our clients negotiate licensing deals, and this webinar contains many of our best practices. You can also read our licensing and deal-making insights posted online.
How do your licensing managers prepare for negotiations? Or do you have a story to tell of a time you wish a manager had been better prepared? Post a comment below or send me a private message.