Most business people in California and beyond want to maximize their assets whenever possible. Intellectual property law plays an important role regarding licensing and asset protection. However, unless an intellectual property owner understands the ins and outs of the licensing system, a well-intentioned action can actually do more harm than good.
By keeping several things in mind, intellectual property owners can make informed decisions that propel them toward greater business success. A person can’t fully protect his or her intellectual property assets if he or she hasn’t identified them all. For instance, it would be a mistake to automatically assume that one can license software one has created. In fact, such a license may be invalid unless the company (software creator) owns the created product.
Also, before a permanent or long-term licensing agreement is forged, it is generally wise to test the market in the specific field where the licensed intellectual property will be applied. In addition to potential profitability through application of a licensed product, astute property owners will also bear in mind the implications of the relationship between licensor and licensee and how things may play out down the line after an agreement is signed. Everything should be clearly spelled out ahead of time, such as issues relating to royalties or contract termination.
Problems associated with copyrights, trade secrets or breach of contract and infringement issues often lead to litigation. This is why most California business owners find it beneficial to seek intellectual property law guidance before entering license agreements. An experienced business attorney can thoroughly review a proposed contract as well as remain on hand after a deal is signed to address any legal issues that arise.
Source: abovethelaw.com, “5 Things To Think About Before Licensing Your Intellectual Property“, Tom Kulik Apr, April 16, 2018
