Making Product Licensing Work For Everyone

Licensing agreements are like any other type of business arrangement. There are many ways to accomplish the desired objectives, and everything is subject to negotiation. The key is that successful licensing agreements are predicated on both parties benefiting from the relationship. As long as all concerned proceed in a professional and respectful manner, a well-structured agreement should be easy to administer and profitable for both parties. The advantages of acquiring either a product or a partner to manufacture and market far outweigh any possible drawbacks to going at it alone - especially when your product line needs a fast infusion or innovation, or your invention needs entree to the marketplace.

Many of the most successful products in history, from Monopoly®, to Gatorade®, to the zip lock plastic bags, were licensed by an inventor for a company that wanted to expand its market share and its profitability. This same synergy can be yours too, just as soon as you secure the right licensing agreement.

Manufacturer Benefits

Speed - cuts product development time significantly and allows a company to acquire new products further along in the normal product development cycle. Savings - transfers the burden and expense of funding and maintaining an in-house product development effort to outside sources. Selection - companies receptive to licensing from independent inventors and product developers, will see far more product concepts than they could generate internally.

Inventor Benefits

Money - provides the financial muscle that any new product needs to be manufactured and marketed, a capability the inventor may not otherwise be able to provide. Expertise - connects the inventor with post development expertise, such as packaging, distribution, advertising, etc., critical to the success of the product. Markets - takes the invention to market, the final proving ground, wherein the inventor's concept has a chance to prove its worth and generate the desired and sought after profits for all concerned. A well-structured licensing agreement represents the best in win-win business thinking. For the company or inventor, yet to avail themselves of this unique form of joint venture, it presents a wonderful opportunity to generate revenues that might otherwise not be part of either party's income picture.