The best way to guarantee that the licensing agreement you sign is fair and rewarding is to hire an expert to help you. Hiring a licensing specialist is worth every penny. Frankly, I think they’re a must-have. There are some aspects of bringing a product to market that you can do yourself, but others absolutely need consulting. I believe that individuals can and should file their own provisional patent applications if they commit to reading up on the subject online. There’s also great, inexpensive software available to help you draft a PPA. But when it comes to filing a patent or signing a licensing agreement – two documents that solidify your idea’s fate and your own income – you should get help. And beyond getting help from a generic attorney or even a patent agent, you should find a specialist who is an expert in his or her field to help you. An expert will know the ins and outs of the language that’s being used. This is especially important to consider when you’re in the process of creating a licensing agreement. My licensing attorney, Kenneth Kramer, specializes in licensing agreements. It’s a very narrow field. He knows exactly what to look for and how to communicate my desires. He has boilerplate agreements to draw from, which saves him and I time and money. This is how he makes his living! I trust him. Don’t ask your patent attorney to take a look at your licensing agreement; likewise, I wouldn’t trust my licensing specialist to help me file my patent. It’s not the best use of their skills and resources, though they may have the best intentions.
You can negotiate the first few rounds of a licensing agreement with a potential licensee yourself (when broad terms are being discussed), but I would never sign a contract that my attorney hadn’t looked over. Before you sign anything, have an attorney look at it! An agreement is basically a marriage. Don’t take it lightly. Get the help you need to insure the best outcome.
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Stephen Key is a successful award-winning inventor who has licensed over 20 products in the past 30 years. He is a board member of Accudial Pharmaceuticals, Inc. and has a new book “One Simple Idea: Turn your dreams into a licensing goldmine while letting others do the work,” from McGraw-Hill. Along with business partner Andrew Krauss, Stephen runs inventRight, a company dedicated to education. Teaching inventors and entrepreneurs the skills needed to successfully license their ideas.
One Simple Idea is available in book stores and online book retailers nationwide. Visit www.inventright.com to learn more.
