There are many ways for a business owner to grow and expand the business. One advantage of a growth strategy based on effective licensing practices is that it helps grow your business, without the need for additional capital or funding. Effective licensing strategies allow you to expand into new markets, test out particular business channels, try out new product features by leveraging the initiative and capital of others.
Permitting another to use your established trademark, copyrights, patents, trade secrets or general business methods in return for licensing revenues can be an effective way to collaborate on a new business venture. However, an effective licensing strategy needs to make sure that the Licensee is not misusing your trademark, copyrights, patents, trade secrets or general business methods. At the same time, the Licensee should be provided sufficient know how, support and freedom to account for the challenges of expanding into a new markets, business channels, and/or product features.
One of the keys to developing and implementing an effective licensing strategy is drafting, negotiating and enforcing good licensing agreements. Drafting, negotiating and enforcing a good licensing agreement can be a challenging endeavor. Working with a good business attorney that can understand your business, and how the licensing strategy fits into your overall business objectives can be crucial to successfully growing your business.
If you have any concerns or questions relating to your licensing practices or how you can grow your business by developing and implementing a good licensing strategy, then please feel free to contact us.