The licensing of an individual's product is a difficult task. There are various ways that a license on a new product can be negotiated: Which would be the best proposal to accept in your opinion ?
a) Lump sum buyout proposal
b) Royalties based on units sold
c) Fixed amounts on a units sold
d) Group amounts of units sold
8) A combination of anyone of these structures
1 Answer from Attorneys
This is a good, general question. The answer, of course, is "it depends."
And the factors it depends on are not "legal" considerations but rather business-risk questions.
We attorneys are schooled to document the deal that the parties bargain for. Some of us gain business experience and can provide meaningful guidance in response to this question, as applied to your particular situation. A possible indicator of this experience includes being a member of the Licensing Executives Society (LES). See www.lesusacanada.org
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