The main focus of the licensing agreement is to provide a right to the licensee to use any product, which the licensor owns. There are various items, which can be major part of licensing agreement and that will include patent, trademark or even branding. The licensee rights will be outlined completely within the license’s agreement. This will give them the chance to sell items, take advantage of brand message or even use a trademark.
Michael Giannulis talks about the working schedule that the licensee has to perform. He is able to keep profits as earned by using the licensed items. As a return favor, the licenser, on the other hand, will receive agreed-upon royalty out of such profits for ongoing use of their stuff. Most of such agreements will have one-time payment upfront for accessing desired items.
Michael Giannulis has already listed out the advantages:
Before you plan to enter your business into that licensing deal, it is important for you to check out all the advantages involved in this sector. For that, expert business leader like Mike Giannulis is here to share some of his knowledge with others.
Perfect way to get passive income flowing:
In case you own any intellectual property, then licensing is one way to create ongoing stream of the passive revenues. There is no need for you to do anything for generating those revenues.
- All you have to do is sell out the licenses after you have developed IP and that’s about it!
- As long your licensees are getting good results by making money, you are likely to make some money as well. Moreover, you don’t lose your ownership rights too.
- With little bit of research and work from your side, these payment can gladly last for many years and there won’t be any interruption in between.
Gaining rights in improvements:
One properly documented license agreement will provide licensor one mean to procure rights in the field of know-how, improvements and some of the related products, which will get developed by licensee while working out on the contract. Butt, there is a twist to the tale of course. You cannot always demand that as a matter of right by licensor. In some of the other countries around the world, there are some strong restrictions to add those clauses in the present licensing agreements.
Mike Giannulis talks about reducing risk for both parties:
Licensing is always designed to reduce the risk factor, associated with doing business with a complete stranger. If you check it out from any licensee standpoint, there will be less risk in market testing, product development, distribution and manufacturing.
On the other hand, from the licensor standpoint, there will be very few risks in selling and service of what is there to be offered. None of both the parties will have to throw own money in such areas for earning profits. It is one winning situation for everyone, involved in the license agreement sector. So, that makes licensing a great choice for all!