IP Licensing services | Intellectual Property Rights (IPR)

Introduction – Licensing of Intellectual Property Rights (IPR)

 One can only use someone else’s IP if the IP Owner has granted them a license. Licensing could be the most lucrative way to make a living today. At its basics, licensing is the selling of Intellectual Property rights to a person or business that wishes to produce it for a profit. Intellectual Property could be a Patent, Trade Mark, Copyright, or Trade Secret. A person may be interested in beginning a new business, extending or developing an existing business, or enhancing the company’s reputation in the market in today’s extremely competitive business environment. Licensing of Intellectual Property Rights (IPR) can frequently be successful in reaching such commercial objectives.

A licencing agreement is a partnership agreement between the holder of intellectual property rights (the licensor) and the party who has been granted permission to use those rights (the licensee) in return for a predetermined payment (a royalty or fee). There are three major types of Licencing Agreements:

• Commercial Licencing Agreement – When the author/owner of the copyright in work does not want to give up ownership, a licence in copyright is granted to a licensee. Such a request seeks to exploit the copyrighted work in whole or in part in exchange for a one-time payment of royalties or periodic fees. In such cases, a licence is given to a licensee who then commercially exploits the works in exchange for payment of royalties to the licensor. The royalty amount could be determined by the Licensee’s earnings and paid in any agreed-upon instalments. Licenses may be awarded for the entire jurisdiction or may be territorial in nature. The law permits a right to a single licensee or a group of licensees.
• Technology Licencing Agreement – The agreed-upon terms and circumstances under which the licensor permits the licensee to utilise the technology make up a technology licencing agreement.

Purchasing such rights through a technology licencing agreement might be beneficial if a corporate entity is interested in using the patent or utility model rights owned by another company to manufacture new products or services or to improve the quality of existing ones. Additionally, if a company wants to expand the market for a good or service for which they have patent or utility model rights, allowing any other company to use the good or service with the aid of a technology licencing agreement may be the best course of action.

• Trademark Licencing and Franchising Agreement – By enabling other companies to produce goods and services under the trademark owner’s brand, companies with famous brands can increase the reach of such brands.

Other businesses might be interested in hiring manufacturers and distributors who brand products with the trademark holder’s trademark before marketing and distributing them.

A trademark identifies the source of a product or service and makes an implicit reference to its quality and brand name, helping to distinguish it from other businesses. In order to maintain quality standards and prevent customer deception, it is strongly recommended for the owner of a trademark licencing agreement to keep a tight relationship with the licensee.

Through a trademark franchising agreement, a business or brand entity’s owner who has already experienced some success in line with the trademark may work with another company (the franchisee), which will contribute its expertise or financial resources to offer the goods or services directly to consumers.

Our Approach – IPR Licensing Services

We at IIPRD, helps facilitate the licensing process of Intellectual Property Rights (IPR).  Because of IIPRD’s strong and acute focus on IP Commercialization and Licensing Issues and has been a part of numerous Out-Licensing deals, IIPRD provides extensive services, including both In-Licensing & Out-Licensing Studies, which mainly comprises doing a detailed technical and commercial evaluation of the technology vis-a-vis the market potential of the technology, competing products, pricing strategies, potential licensees, the strength of patent protection, coverage and enforceability of the concerned patent among other commercial and technical issues, that help present a Best-Fit Strategy to suit the client’s needs.

We present your invention to manufacturers as a potential source of viable revenue stream. To accomplish this challenge, we create professional, customised marketing materials that invoke a positive first impression and speak to the manufacturers’ primary interest, i.e. how they can make money by licensing your invention.

We provide an immediate and active marketplace that benefits both patent owners and interested licensees. IIPRD can:

• Search specifically for IP available for licensing
• Inquire about the licensing potential of any patent
• Evaluate an IP
• Perform Manufacturer Research
• Facilitate Materials Development
• Undertake Presentation of Manufacturers
• Initiate Dialogue Facilitation
• Facilitate Deal Negotiation
• Help in Drafting a Licence Agreement

Process Followed By IIPRD During Licensing Of Intellectual Property Rights (IPR)/ Commercialization

• STEP I
  A Memorandum of Understanding (MoU) is signed with the client or IP holder after professionals at IIPRD / K&K have reviewed the Technology, Intellectual Property (IP), and Patent in context and have examined any supporting data that is available, such as Clinical Results, Prototypes, and Proof of Concept.
• STEP II
  IIPRD’s Licensing Professionals develop a thorough Technical Presentation of the Technology / IP / Patent at this point, expanding the facts and highlighting the primary technical value proposition for potential licensees to better understand the nuances and the intricacies involved in the entire process.
• STEP III
  After preparing and finalising the technical presentation, IIPRO’s professionals will pitch to and contact the CTOs, R&D heads, and business development heads of various potential licensees who are relevant to the technology’s context (through email, social media platforms, referrals, telephonic-personal meetings), to ascertain their interest in and feedback on the proposed technology, and to follow up with them regularly over the course of three to six months.
• STEP IV
  After receiving a potential licensee’s interest confirmation, IIPRD creates a draft term sheet based on an internal evaluation of the technology. Valuation is a specific billable activity entirely up to the client’s decision. The potential licensee then thoroughly negotiates the draft term sheet with the client to finalise the conditions of license or sale of the technology.
• STEP V
  After completing the term sheet, Khurana & Khurana will draft a licensing agreement (as a separate billable exercise) to facilitate the execution of those above licensing or sale agreements. At that point, IIPRD will charge the mutually agreed-upon success fee based on the amount of the transaction

Process Followed By IIPRD During Licensing of Intellectual Property / Commercialization