Upon entering a licensing agreement, you (i.e., a licensor) are permitting another party (i.e., a licensee) to use your piece of intellectual property in a certain manner, so long as you are properly compensated for it. With the serious legal implications of this contract, there must be a lot of thought put into signing it. This also means that it cannot be executed without the sound advisement of a lawyer in your corner. Continue reading to learn who can enter into a licensing agreement and how an experienced New Jersey licensing agreement lawyer at The Ingber Law Firm can help you thoroughly consider this weighty decision.
Who can enter into a licensing agreement?
To begin with, you must confirm your eligibility to enter into a licensing agreement. Without further ado, you may begin to consider this option if you fall under any of the following circumstances:
- You are the owner of a song or other musical work that another party wants to feature in their TV series.
- You are the owner of a sports team logo that another party wants to print on their clothing or other merchandise.
- You are the owner of a book or other literary work that another party wants to adapt into a movie or other dramatic work.
- You are the owner of a certain electronic hardware, software, technology, or service that another party wants to use in their storefronts.
- You are the owner of a trademarked business method that another party wants to incorporate into their standard of operations.
What are the advantages and disadvantages of entering into this agreement?
Once you confirm that you qualify to be a licensor, you must then consider whether being a licensor will even work for your personal gain. Without further ado, below are some advantages and disadvantages of entering into a licensing agreement:
- This agreement ensures an understanding of what/when payments are due, what/when royalties are due, what/when this relationship expires, etc.
- This agreement grants you control over your intellectual property all while giving you access to new markets.
- This agreement saves time, money, and hassle by avoiding future legal issues.
- This agreement may increase your competition, even if it is directly against your licensee.
- This agreement may leave you trapped in a legal obligation with the wrong licensee in the wrong market.
- This agreement may diminish your brand power and reputation if you are tied with the wrong licensee in the wrong market.
So even if you are only considering a licensing agreement, it is best that you first consult with a skilled Essex County, New Jersey intellectual property lawyer. Do not hesitate to get in touch with us at The Ingber Law Firm today.