//Importance Of License Agreements

Importance Of License Agreements

Several factors that can influence the potential licensing fees of a licensed product are: Research Sources There are a large number of sources that can be used in the search for products/processes, etc. licensed that can be contacted: it is difficult to determine an acceptable license fee for a product, because there is no quick percentage that can be used as a general measure. Although rates between 3% and 8% of net sales are common, any licensing agreement is unique and the only royalty consensus is that between the licensor and licensee as a result of negotiations. A licensee knows his market much better than the average licensor. This knowledge makes it possible to market intellectual property in a way that is more attractive to the average consumer. Licensing involves obtaining permission from a company (licensor) to manufacture and sell one or more of its products in a defined territory. The company that obtains these rights (the licensee) usually agrees to pay a royalty to the original owner. The bargaining power of both parties to a licensing agreement often depends on the nature of the product. For example, a film studio that conceded the image of a popular superhero to an action character manufacturer could have considerable bargaining power in this negotiation, as the manufacturer will likely benefit from such a deal. The film studio therefore has the leverage to relocate its activities elsewhere if the manufacturer is cold on its feet. In May 2018, Nestlé and Starbucks entered into a $7.15 billion coffee license agreement.

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Von | 2021-09-23T17:55:02+00:00 September 23rd, 2021|Allgemein|0 Kommentare