Negotiations begin very early on in the process of licensing an invention/idea. Most people are confused about this. They believe negotiations for a deal get underway only after a company expresses interest in licensing their product. No -- not at all. As soon as you...
What Inventors Need To Negotiate With The Largest Companies On Earth
How can an individual entrepreneur or inventor negotiate against much larger companies? Overall, by staying one step ahead. Actually, by being more than one step ahead — try for five or six steps ahead at least! You must take advantage of your size. When you’re small...
How to Get a Higher Royalty Rate For Your Invention
Have an idea for a new product? Early on, spend some time determining what your strategy for bringing it to market will be. Is venturing required, or can you license it instead Personally, after venturing uniquely shaped guitar picks geared towards fans and licensing...
Why Having a Performance Clause is More Critical Than Your Royalty Rate
When licensing your product idea to a company, there are many things to consider. One very important aspect is some type of performance clause. If you license the rights to manufacture and sell your concept to a company and for some reason it doesn't perform, you need...
Use This Simple Quality Control Clause to Protect Your Idea
Speed to market is more important than ever but even so, product development takes time. Typically, there are manufacturing obstacles to overcome. When you venture an idea on your own, the responsibility of resolving said issues falls squarely on your shoulders. Total...
Use This Simple Strategy to Ensure Your Deal Gets Done
In my experience, companies want to work with people who are helpful, responsible, and pleasant. I mean, on the one hand, who doesn't? But if you're an independent product developer who wants to bring your ideas for new products to market, the degree to which you...
When Potential Licensees Are Interested, They Ask These Questions: How to Prepare.
Early on in my career as a product developer, I decided to focus on licensing my ideas rather than trying to bring them to market myself. My motivation was simple: I thought I could improve existing products. And that if I did, companies would pay me for it. So...
Before You Move to a Licensing Contract, Establish a Term Sheet
In many industries when two parties are beginning to work out an agreement, it's standard practice to agree to some basic terms before moving forward with a contract. Why? If you don't share the same perspective on big-picture issues -- or aren't able to work together...
Without This Clause, Your Rights to Your Invention Are at Risk
If you've been following my columns about how to license your product ideas for passive income, you know I believe in the power of self-education. You can't depend on others to do the work for you. You need to think critically, develop a strategy for bringing your...
How to Make Sure Your Licensee Is Paying You What You’re Due
One of the questions I receive most about licensing is, "But how will I know my licensee is paying me enough?" It's a valid question. Good partnerships are built on trust, and licensing is really about finding the right partner to help you bring your product idea to...