Mistakes You Can Make Signing a Licensing Agreement
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- Опубліковано 1 лют 2018
- There are so many different ways you can bungle the process of signing a licensing agreement. If you ask for the wrong things at the wrong time, you may scare off your licensee. Or, if you fail to get the help you need, you may end up leaving money on the table. Product licensing expert Stephen Key describes all the mistakes he's made signing a licensing agreement.
inventRight is a one-on-one coaching program that has helped people from more than 40 countries license their ideas for new products. It was founded by Andrew Krauss and Stephen Key in 2001. Visit www.inventright.com for more information and to become their student.
Call #1-800-701-7993 to set up an appointment with Andrew or another member of the inventRight team to discuss how we can help you license your ideas.
New to licensing? Read inventRight cofounder Stephen Key’s bestselling book “One Simple Idea: Turn Your Dreams Into a Licensing Goldmine While Letting Others Do the Work.” Find it here: amzn.to/1LGotjB.
Want to learn how to license your product ideas without a patent? Stephen's book “Sell Your Ideas With or Without a Patent” explains exactly how. Find it here: amzn.to/1T1dOU2.
inventRight, LLC. is not a law firm and does not provide legal, patent, trademark, or copyright advice. Please exercise caution when evaluating any information, including but not limited to business opportunities; links to news stories; links to services, products, or other websites. No endorsements are issued by inventRight, LLC., expressed or implied. Depiction of any trademarks/logos does not represent endorsement of inventRight, LLC, its services, or products by the trademark owner. All trademarks are registered trademarks of their respective companies.
Good people. Always the sign of somebody who is bright, they are introspective, understand their mistakes and have an insight into them.
THE Absolute BEST!!!!!!!
Thank You Stephen King!
His name is Stephen Key. Thought you should know in case you decide to search for any of his books...
So glad my curiosity led me to his videos
Valuable information I needed to hear.
Thanks for sharing all your personal experiences with us to help us new inventors avoid any potential pitfalls. I love the way you say"don't do that." 😅
Thank you for making these videos💪🏽
Thank you Stephen for sharing your experiences and your successes.
Love 2 learn from Stephen's school of hard knocks!)Good video!)
Thanks for all the info you guys are awesome
Thanks for helping us avoid taking aspirins Stephen. Making yourself the unintentional guinea pig for the process of signing a deal.
Will surely save many of us, from future headaches. 😉
Extremely Valuable Thank You 😘😘
That one of the most useful information package UA-cam video, THANKS !
You're welcome!
That was an excellent video! It would be nice if you could go back into detail for the exclusive and and how that would work work licensing it out the same time. Thanks again
Yours videos have really helped me out today with just forming a plan for ur past experience. I couldn't imagine how valuable a 1 on 1 or group meeting would be in terms of creating something from my proposed ideas
Hey Stephen, I’m loving all the content that you’re providing, thank you so much for doing what you do!
I have a quick clarifying question: Should I use an LLP or LLC? Could you go into more detail about the differences of these when it comes to licensing. Thanks!
Thank you mr. Key... this is very useful information, your personal experience in this field is like a pot of gold for ppl. I hope you will do a lot of those videos.. I could use some detailed advise from you :)..
Thanks again Stephen, Your help is most valuable. I've learnt so much from you guys so far and so far to go! Thanks from down in Australia!!
That's wonderful to hear. There are more resources on our website: inventright.com
Thank you, sir. This is valuable information
The improvement clause you mentioned is like giving them the liberty to improve apon your idea,form shape etc.Thanks again Stephen
Yes!
Thank you for your time
Pure gold.
Love this!
This video es excellent, I'm taking notes of all these, thank you!
You are the best! Hope to meet you one day.
Great advice stephen
New subscriber! And just bought your book! Can't wait to meet you one day!
That's great to hear! Thanks for following, Leah!
Wow, you moved to Nevada! My man! :) I am from NYS, so I feel the pain!
Thanks for a sharing your knowledge and experiences! Coz im a new inventor and dont have any idea of Lisencing...
Stephen's bestselling book "One Simple Idea" explains to license your ideas in 10 steps: www.amazon.com/One-Simple-Idea-Revised-Expanded/dp/1259589676
It's available in many libraries in the U.S.
Thank you for watching!
Great video!
Great content Stephen, that's what sets you apart from the rest. Also...would be great to see you do some short interviews with some of your students on the road they traveled to successful licensing deals.
Thank you, Max!
We have a few videos where we feature some of our students. If you'd like to take a look, here is a link to our playlist that covers what our students say about the process of licensing their idea with the help of inventRight: ua-cam.com/play/PLG-tVkiG-bLEVZiOw8y3drH6rLM1Ivd6R.html.
Thanks for watching!
Thanks!
Thanks man
Stephen Key,I have the greatest idea in the world. You are the only person in the world I will communicate with. Simply because I see you as the Goat! Full of knowledge and experience. Please make haste!
You can always send me an email. stephenkey@inventright.com
Thank you Stephen 💫
Thank you for watching Donna!
Thanks a lot your information is appreciated...
Thank you for watching. Please subscribe if you haven’t already.
-Stephen
thanks steven
Thanks so much for your great videos, very informational and I LOVE THE ATTITUDE! Makes me want to laugh about it all but educate myself to the highest point so I do not get screwed! My question would be, if I sign a licensing agreement with a company that's ultimate goal is to sell their company after a few years and they do not want to transfer royalties to the nw owner, what do you suggest I do? Thanks again! Awesome work :)
Thank you for the licensing information. What company do you you share your ideas with?
Nice one...
Who helps with “business terms”? I feel so overwhelmed! Help!!!
Thank you
You're welcome!
Wow you're my new mentor! I'm a creative person but I haven't join the licensing game because I can't afford a licensing attorney... So how much money do I need to save up to able to afford licensing attorney? I make about $700-$800 a month from my garbage job.
Hi Daniel. You can get in the game - meaning reach out to companies - before you need to hire a licensing attorney. Most inventors do not license their first idea, the point being there's a lot you can learn on your own. That said, you will want an attorney to look over your contract. Check out our video "How to License a Product For Less than $100-$200": ua-cam.com/video/j5waGpAyL_I/v-deo.html. If you're new to licensing, we highly recommend picking up a copy of Stephen's book "One Simple Idea." You can find it on Amazon (www.amazon.com/One-Simple-Idea-Revised-Expanded/dp/1259589676) and in many libraries in the U.S. Thanks for watching!
Thanks Steve,great ideas for a new inventor,have a patent ,have a prototype now going to crowdfunding. Hoping for a licensing deal !!!
Best of luck!
Good Stuff!!!!!
U R the Best.
Excellent
Thank you!
thank you mr. key!👍👍 just want to ask you sir, when you say don’t put it under your name & use llc, then which name could or should i use? & into what extent am i gonna get in trouble using my name on the agreement? again, thank you! & God Bless!🙏
Good information
Thanks
Hello Mr. key i would like to tell you how a wonderful job your doing and I've learn so much over the years but the reason today I'm reaching out is back about 7 years ago i took your advise about just talking to some people about my invention without a patient i talk with senior buyers to compaines etc. but this one company in turned took my idea and its on the market now. any advise on what i can do to try and reclaim my invention?
You're an encyclopedia of experience in that licensing industry. Thank you Stephen for sharing these tips with all of us beginners in this wonderful space of creativity. I wonder how many of those you still have in your books and courses, bought your "One simple idea" as soon as you suggested to me on LinkedIn "yesterday" and looking forward to reading it ;)
Thank you for watching and the kind words, Edmond.
A video on negotiating improvement clauses would be helpful, thanks
You can read more about the importance of improvements clauses in your licensing agreement here: www.inc.com/stephen-key/without-this-clause-your-rights-to-your-product-idea-are-in-danger.html
GREAT ADVICE thanks GEORGE south lake tahoe
Thanks for watching!
How much additional money should we budget for the licencing attorney? Spitball estimate.
Hie Stephen.You are wise indeed.My question to you sir is are you also advising us not to put our name on PATENT APPLICATION FORM?I'm from Zimbabwe
At end you said we can write the contract, “we can do it” but earlier in video you said to let the company submit the licensing contract. A bit confusing. Can you clear this up? Should the company your dealing with write the licensing contract or should we write the licensing contract. Another question is in other videos you say all you need to do is license your idea, and in other videos you go on to say do utility patents and other patents before approaching a company about licensing contract. Again kind of confusing. How many “other” patents will someone actually need ( let use a new tool for auto machanic) besides just a licensing contract and how much does it cost for the “other patents”. Thanks for your time!!
U didn't understand it well
Great info Stephen! Subscribed! Are you in Vegas?
Stephen lives in Northern Nevada near Lake Tahoe. Thank you for subscribing!
Are you interested in investing in other projects? I have a prototype and in the middle of writing a provisional patent on a very marketable product . 7026195996 Joe
Wonderful info and video but this one confusing, if you do reply. Its like contradiction your self. You say dont let attorney negotiate your contracts but read the terms then have them help with writing clauses. So what is it. Do we come to you for that ofcourse at a fee?
I wish you could go deeper in that point of asking the company to help you pay for your patents as part of the deal... Like do you ask that because they can write it off as business? or because compared to buy a car as you mentioned is cheaper? Or just because it sounds better? If anyone can give their point of view would be helpful too.
Thanks invent right community
Is it ok to make a company your pitching a license agreement to have sign a N.D.A. (non disclosour agreement) before pitching your idea? Can you comment on this or make a video in this area? Thanks for your time and sharring your knowledge with us.
Thank you. Phila
Your welcome. Stephen did a great job with this video. - Andrew Krauss, inventRight Co-Founder
thank you so much for the wonderful info. One thing that I'm still confused about was the Exclusive vs NonExclusive. I would want to sign with NonExclusive so I could keep on signing the Licensing Agreement with many more companies, correct?
U would want exclusive it’s worth more
Great info Stephen. I have a question about signing a contract using LLC. I live in California, creating LLC is expensive like you said. Can't you just add a clause in the contract that releases inventor from all liability? Is this something companies would agree to? Thanks for your video.
twobafour1 Try Wyoming. Low cost, and 5-10mins.
@@ChasingMidnight001 thanks for the tip
THIS video was FULL of information
🌠🌌💞thank you 😊
Do you have an International call line perhaps?
ver informative
Great vids..question, are you in the market for partnership w/ new inventers? I read you as straight up no bs type, either a good bs'er or a solid guy, I'd bet the latter. 😄
Hey Stephen u said u should sign a licensing agreement under a LLC , so should I file a patent in my name or under the LLC’s name ??
If you go back to add more info to your app will it cost to do that?
Open to help from anyone who ready this as well
Hi Steven, I just had a big company email me today wanting to license my product that I've been selling myself for 5 years. I appreciate all your advice and tips.
That's fantastic! Congratulations! We can help you negotiate your contract, if you are looking for that service: www.inventright.com/contact
How much was contract fee?
@@inventRight Hi Stephen do you offer th this service outside of the US?
Thank you for creating these videos. They have been very helpful. However, I have a basic question that I can't seem to find the answer to anywhere. Can you license your product with a big company and still keep it to sell yourself so you can up sell other products with it? That way you can get your product to market faster while still being able to create income by selling your product yourself. Or is that a silly question?
Glenn, no questions are silly. That said, a big benefit of licensing is that you don't have to take the time (and mostly the expense) to manufacture the product yourself. It all depends on how you negotiate. For example it's possible to carve out exceptions. (Maybe your licensee only sells in certain countries, or certain kinds of stores.) This is how you can license the same product more than once. Give us a call we'd be happy to talk to you: www.inventright.com/contact
Am I supposed to go to one company who makes the product I want to fuse into another? Get prototype made? Or maybe go to the company I want the gadget fused into? I don't own either but I discovered that they can work together.
You mention never sign a licensing agreement in your personal name, but an llc. What about when filing the uspto ppa does that mean I should create a customer number and account for the llc to apply for the provisional patent?, or do I need to link my personal account and llc somehow? I am just trying to set this up write the first time. UGHHHH Please help. Thanks!! Love your videos! I am moving forward daily with my first invention idea because of your videos. Thanks! PLEASE HELP!!
will you help me if I join your team with these terms?
Having an LLC for your invention company makes good sense. Do you see any need/advantage to designing a logo and having a web presence. Every potential licensee I've called asks "what company are you with?" A web presence would give them something to look up. But what should they find?
What's most important is that they perceive you are a professional. So having a dedicated phone line, professional-sounding email address, etc. are important. A website less so - companies don't care about what you've already invented, they're more interested in what you are showing them. So as long as your website doesn't hurt you.... Though that time/money is probably better spent elsewhere.
I have an idea but i cant make the prototype dont know were to go
Priceless information. However, I live in Hamilton, Canada and have just acquired a patent from the US patent Office in February 2018. How do I find someone here that can help with the business terms? I already have an attorney in the waiting. I've done lots of online searches and came up empty. Thanks much.
I live in Brampton and would love to know what information you've gathered
Hey Steve! These channels are so inspiring and your enthusiasm is infectious. Love it! Again, thanks so much. Creative/critical thinking
is key which I believe is innate. You can't instill it into people.
Thank you so much Chris!
@@inventRight "A good concept sells itself". Absoutley grateful Steve.
Hi Stephen,
Thanks again!
One thing that I'm confused about. You mentioned that these items, (IP on improvements, royalties, minimum guarantees etc. are all things that should NOT be dealt with at the beginning of negotiations. So, what is left to be discussed at the start of negotiations? I'm sure we are not going to be sharing with each other what is our favorite color. ( :
And, even if we will be speaking about our favorite color, I don't imagine that this will take too much time, and so then, we will begin the negotiations....no?
Thanks for your reply!
Exclusively, Territory, term.... Very basic things. You want to get a yes on everything.
Thanks for the answer! However, I would imagine that these issues would not take too much time. Right?
No, and that's the point. The licensing agreement is everything.
The music at the start makes this video
Thanks InventRight, one question. When Stephen says "have someone help you negotiate a deal" what would the title of this person be? Business negotiator, licensing attorney?
We can help you. - Andrew Krauss, inventRight Co-Founder ( Call, email, book an appointment or request more info about how we can help by visiting us here. inventright.com/contact/ )
I have a question, for my invention idea, do I contact the library of Congress to submit my invention Idea first to protect it for copywriting purposes first before submitting it to companies?
Copyright is one form of intellectual property. If you're looking for help with your strategy, contact us here: www.inventright.com/contact
How do you license a product that doesn’t fit any current technology companies? My invention is in the green energy industry but it’s a new technology. I would rather license it because I’m 51 years old and I don’t want to start a company at my age. Not sure where to go from here though.
So in the contract if the deal is an exclusive, the rights still belong to the licensor(you) correct?
You definitely want to retain ownership over your idea when you license it out, and there are many ways of doing that in a licensing agreement. It all comes down to your negotiation strategy. It's never black or white. Thank you for watching.
How to you find a honest Licensing company? Where do I start?
Steve i being thinking of and invention dont know how to go about it Who i call first?
You need to get some things in line before you call companies such as a sell sheet, your research and list of companies. - Andrew Krauss, inventRight Co-Founder
How did you secure your product or service before you disclosed to the licensee? There’s a lot of help for all the stuff you’re talking about but most of us out there have their ideas stolen, copied, infringed, lied to, misrepresented, so, that’s where you start, right!
Many of Stephen's early licensed product ideas were for the novelty gift and toy industries, which have a history of working with independent inventors, and did not require any intellectual property protection. More on those ideas and how much they generated here: ua-cam.com/video/gxeuCPaGeHY/v-deo.html
When he had an idea for a new kind of rotating label, that required significant patent protection.
He describes how to license a product with or without a patent here, and strategies for simple versus big ideas: www.amazon.com/Sell-Your-Ideas-Without-Patent/dp/1507885733/
He has made many videos and written many articles about strategies for dealing with copycats, me-too products, knockoffs, and more. Keep learning!
I am "talking" with a company now and recently sent them a prototype, that they requested, so that they could get overseas pricing. We have discussed basic terms but nothing in writing. Should I ask for some kind of contract before proceeding any further?
This question is extremely important. Start with a term sheet. I will try to do video on it in the future.
Where do you live? I would pay you for a couple hour consultation before contacting potential Large Companies for a licensing deal. Its in the hands of a Patent attorney in Miami and its almost ready to be taken before the Patent Examiners. I just have to approve a couple small details in the packet they submitted to me. I live in Michigan and would also be willing to do a Zoom with you that way I can show you my product and how its going to change an industry. Thank You
💪
Together we can incorporate all my ideas into real life.
You pay to patent it all in my name, make it, and then sell it all over the world.
You have business people, companies, you are experienced in everything.
Let's agree on everything and how much to take a percentage of the sales of my inventory products.
I reached out to you by email as well Stephan and the fellas at invent right
Didn't quite understand the exclusive/non-exclusive part. Can anyone explain it please?
This video sheds more light on the differences between exclusive and non-exclusive licenses: ua-cam.com/video/wCvDv1spEEc/v-deo.html
Thanks Stephen,what about company's,who demands your PPA number,when signing,a submission idea sheet,should we get the hell out,or try our luck,keep going strong,Christ.
Why would you give away so much information away without anything in return? Doesn't make sense to us. Qualifying potential licensees is crucial. Thank you for watching Christian.
thanks for advices.
Can we arrange a meeting?
At the peresent time, my patent pending is in my name. I am about to be offered a licensing deal like maybe within a week. Should I transfer the patent to my company name? And is that easy to do?
Feel free to book a call with one of our advisors to discuss. www.inventright.com/contact -Andrew Krauss, inventRight Co-Founder
😂 mistake's..... Always told my kids that is where you learn the most is from mistake's... After all....
( Failure is success turned inside out )
What does the average license attorney charge, just a ball park figure, & can you refer me to someone, & can you refer someone with the business experience, my son owns his own company, as a licensed subcontractor with an LLC, could i put it in his company name
Within the 7 min mark, do you have the contact terminate due to not hitting the minimum guarantee so that you can offer another company exclusive rights? If so, the problem I see is that the contract could terminate and you don't have a new licensee on standby. Does the contract lose exclusivity to allow you to find another company where, when you do, the contract terminates? Thanks from a member of Tampa Bay Inventor's Council.
Hi Travis. Good question. Stephen's perspective is that if minimum guarantees aren't hit, it's a great opportunity to renegotiate - not automatically walk away. Remember, you are partners. That said, yes, if they are just sitting on the product, it might be time to move on. For more specific help, get in touch with us.
Good stuff Stephen....As allways...I got a ?....I have great concept that could revolutionize the food industry. And I have a very nice working proof of concept....although not a real prototype.....Lots of engineering improvements needed to bring that to market....
If I was to demonstrate the concept in a video that I would post on youtube......Would the TIMESTAMP of the video be enough to prove the Idea is entirely mine, and therefore allow me to try to reach companies that could be interested in the concept? Thanks
MolloRelax no, don’t post it on line or publicly disclose it. If you do that you will loose all rights of ownership to the idea and then anyone can make it and sell it without paying you a cent. What you want to do is go to a patent lawyer and file a provisional patent application (1 year temporary patent application) or a utility patent (20 years patent) before you publicly disclose it or show it to anyone else. If you post a video on UA-cam make sure it is unlisted, so that way the public doesn’t see it and you send the video link to the company or people that you want to show it to.
Tanks Eduardo...I guess I'll keep my secret for now. I do not think I could apply for a utility patent...since the (working concept) is in its preliminary stage right now....A PPA is more relevant at this point IMO
I also have some kind of fear of uploading an invention Idea to UA-cam....even if one keeps it unlisted.....here is my concern.
First of all, all videos are suppose to be approved before they are posted...meaning that someone has looked at it and cleared it for posting. What if that someone decides to just steal the idea and run with it or.... alert a friend of the Invention potential that ...he/she just saw, thereby just securing the IP ??? . Nobody could prove there was any wrongdoing...I know I'm being paranoid , but it still a valid concern I think.
Hi MolloRelax. The quickest way to establish perceived ownership over your invention is to file a well-written provisional patent application (PPA). We have a program created by leading patent attorney Gene Quinn for people who are looking for help writing a provisional patent application: www.inventright.com/what-we-offer/smartip-offer. Stephen also wrote a book that describes how you can file a PPA on your own: www.amazon.com/Sell-Your-Ideas-Without-Patent/dp/1507885733/. You need to develop a strategy for getting to market. This sounds harsh, but anyone can steal your idea at any time - having a patent does not protect against that. The goal is to give away enough information, at first, to interest a licensee. Not exactly how your idea works. We know there's a lot to consider when it comes to IP strategy! Please keep watching and reading.