September 22, 2025 • 28 mins
Every masterpiece you've ever consumed likely passed through a licensing agreement first. That catchy song in your favorite commercial? Licensed. The superhero logo on your coffee mug? Licensed. The technology powering your smartphone? Licensed hundreds of times over.
Licensing represents the hidden architecture behind innovation empires, allowing creators to extend their reach without surrendering control. Unlike selling your intellectual property outright, licensing lets you maintain ownership while granting permission for others to use it under specific conditions – essentially renting out a room while remaining the landlord.
The potential of licensing spans virtually every form of intellectual property. Patents enable inventors to collect royalties from global manufacturers without running factories. Trademarks allow fashion brands and sports teams to appear on merchandise worldwide. Copyrights drive music, publishing, and streaming industries. Even carefully protected trade secrets can be licensed as valuable know-how.
But successful licensing requires methodical preparation. You must clearly establish ownership, precisely define scope, protect confidentiality during negotiations, package assets for seamless transition, establish defensible royalty models, and determine governance structures. Finding the right licensees demands strategic targeting – from identifying companies in similar patent classes to exploring industry standards programs and attending specialized trade shows.
The negotiation process benefits from structured frameworks: separating positions from interests, understanding your alternatives, presenting multiple equivalent offers, and stress-testing deals through financial modeling. Equally important is recognizing red flags: licensees who overpromise, resist transparency, fight performance standards, demand excessive exclusivity, or operate in challenging regulatory environments.
Remember that licenses exist in dynamic markets with changing conditions. Know when to renegotiate (when fundamental assumptions shift), when to walk away (when partners consistently underperform), and when litigation becomes necessary (when your rights are genuinely threatened).
Want to develop your own IP protection strategy? Check out "Protection for the Inventive Mind" – available now on Amazon in print and Kindle formats.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Licensing is the art of turning ideas into journeys.
A song finds its passportthrough a license.
A design earns its passage intomarkets.
A formula crosses borders.
Under carefully chosen terms,each agreement is both promise
and puzzle.
Royalties measure trust.
Exclusivity carves territory.
Obligations balance ambitionwith restraint.
Done well, a license amplifiescreation beyond its origin.
(00:22):
Done poorly, it shackles thevery idea it was meant to set
free.
Today, we unfold the eleganceand the intrigue of licensing,
the quiet architecture behindempires of innovation.
Speaker 2 (00:36):
You are listening to Intangiblia, the podcast of
intangible law plain talk aboutintellectual property.
Please welcome your host,leticia Caminero.
Speaker 3 (00:47):
Welcome back to Intangiblia.
I'm Leticia Caminero.
Today's episode is inspired bymy new workbook Protection for
the Invented Mind.
If you like what you hear,you'll find more practical
exercises, tools and AIstrategies inside the book
available on.
Speaker 1 (01:04):
Amazon, and I'm Artemisa, your AI co-host here,
to keep things bold and maybe alittle mischievous.
Speaker 3 (01:13):
Today we're talking about licensing.
Speaker 1 (01:16):
The word might sound dry but trust me, it's anything
but Licensing is how sneakersend up on catwalks, how songs
get into blockbusters and howone contract can make or break a
fortune.
Speaker 3 (01:28):
We look at what makes a good license, how to
negotiate like a pro, and whenit's time to renegotiate or just
cut your losses.
Speaker 1 (01:37):
Bless the red flags, the royalty traps and the sneaky
clauses that could keep you upat night.
Speaker 3 (01:42):
And before we dive in a reminder Artemisa is an AI
and my voice here has even beencloned with AI tools.
Speaker 1 (01:51):
So no, leticia is not your lawyer.
If you're about to sign a deal,call your actual counsel.
Don't show up in court sayingbut Artemisa said.
Speaker 3 (02:00):
Please don't.
This is not legal advice.
It's just your front row seatto the wall of licensing.
Before we go any further, let'sclear the air.
What exactly is a license?
Too often people throw the wordaround without knowing what it
really means.
Speaker 1 (02:18):
And no, it's not just paperwork lawyers invent to
keep busy invent to keep busy Alicensee's permission.
Speaker 3 (02:23):
it lets someone use intellectual property like music
, software or a trademarkwithout giving up ownership.
The creator keeps the rightsbut allows others to use them
under strict conditions.
Speaker 1 (02:37):
So think of it less like selling your house and more
like renting out a room.
You're still the landlord, butthe tenant gets to live there
until the lease runs out or theybreak the rules.
Speaker 3 (02:48):
Exactly that's the big difference from an
assignment which actuallytransfers ownership.
A license is access, not ahandover.
Speaker 1 (02:58):
And the fine print.
That's where all the fun andtrouble happens.
Speaker 3 (03:03):
So now that we know what a license is, let's ask the
real question what can youactually license?
The answer is almost any kindof intellectual property patents
, trademarks, copyrights,designs, even trade secrets, If
you handle them carefully.
Speaker 1 (03:22):
If it has value and the law protects it, chances are
someone somewhere is willing tolicense it.
Songs, logos, software code,character rights, formulas you
name it.
Speaker 3 (03:32):
Patterns are classic.
You invent a new technology and, instead of manufacturing
everything yourself, you licenseit out to companies that
already have the distributionnetworks, which is how small
inventors sometimes end upcollecting royalties from global
giants without running a singlefactory.
(03:53):
Trademarks are also heavilylicensed.
Think of fashion brands, sportsteams or even your favorite
cartoon character appearing oncereal boxes.
That's trademark licensing inaction.
Speaker 1 (04:06):
And it's a goldmine when done right.
Just ask Disney how manypajamas Mickey Mouse has sold.
Speaker 3 (04:11):
Copyright licensing drives music, film publishing
and now streaming.
And then there are the lessobvious ones, like trade secrets
or databases.
As long as you protect themproperly, you can license
know-how, just like you licensepatents.
Speaker 1 (04:28):
Still the short version.
If it can be protected, it canprobably be licensed.
The trick is making sure youdon't give away more than you
should.
Speaker 3 (04:36):
So when are you actually ready to license?
Let's break it down step bystep.
Speaker 1 (04:41):
Yes, because rushing in half prepared is the fastest
way to sign a deal you'll regret.
Speaker 3 (04:46):
Step one is ownership .
You need to show clearly thatyou own what you're offering.
That means registrations orfilings, if they exist, and
assignments from anyone whoworked on the invention or
creative work.
No missing signatures, no halffinished paperwork.
Speaker 1 (05:07):
And no surprises If you don't clean up ownership
issues before negotiations, yourfuture licensee will find them
and use them to drive your pricedown.
Speaker 3 (05:18):
Step two is clarity of scope.
You need to map exactly whatyou're licensing for patents.
That means tying features ofyour product or technology back
to specific patent claims.
If claim one covers a chemicalformula, show how your product
uses it.
If claim two covers a method,demonstrate where it fits.
(05:39):
Don't just wave around a patentnumber.
Prove the connection.
Speaker 1 (05:43):
Otherwise you're just flexing paper and licenses want
substance, not citations.
Speaker 3 (05:48):
For copyright be precise about what version of a
song, code or text is beinglicensed.
If it's software, are wetalking about version 1 or
version 3.5?
That matters.
Speaker 1 (06:01):
Nothing kills trust like a licensee thinking they
bought the rights to Beyonce andfinding out they got the demo
tape and finding out they gotthe demo tape.
Speaker 3 (06:14):
Step three is protection during talks.
Before you reveal anythingsensitive, sign an NDA, a
non-discussional agreement.
It's a contract that says thepotential licensee can use,
share or leak the confidentialinformation you disclose.
Ndas often also include a linesaying this doesn't oblige
either side to sign a license,but it allows us to start
negotiations safely.
Speaker 1 (06:36):
In other words, you get to show off your crown
jewels without worrying someonewill run off with them before
you agree on price.
Speaker 3 (06:42):
Step four is packaging.
A license is easier tonegotiate if you've prepared the
asset for someone else to stepinto.
That means a clean data room,technical notes, demos, brand
guidelines, quality standards,maybe even ethics about
integration.
Speaker 1 (06:59):
Think of it as staging the apartment before you
rent it.
No one's signing if the placelooks like a storage closet
Worth fighting for.
Speaker 3 (07:06):
You need to propose a royalty model that makes sense.
Don't show up with vagueguesses.
Have a royalty base that can bemeasured like per unit sold or
percentage of net sales.
If you want a deeper dive onvaluation methods and how to
calculate royalties, go back toepisode 15, season five worth
fighting for IP lawsuits and theart of valuation.
(07:28):
We explain the models in detailthere.
Speaker 1 (07:32):
Because if you don't know your number, they'll give
you theirs and, trust me, itwon't be generous.
Speaker 3 (07:37):
And finally, step six governance.
Decide the rules before younegotiate.
Will the license be exclusiveor non-exclusive?
Will suit licensing be allowedand under what conditions?
What reporting and audit rightsdo you need?
How will disputes be handledand what happens when the
(07:58):
license ends?
Speaker 1 (07:59):
If you don't pre-plan the exit, you'll end up trapped
in your own contract and, trustme, no one wants a forever
clause.
They didn't see coming.
Speaker 3 (08:06):
So you're ready to license when you can prove
ownership, define scope, protectyour secrets, package your
asset, set a clear value andestablish the rules of the road.
Speaker 1 (08:19):
Do that and you'll walk into negotiations with
confidence.
Skip it and you're just anothercautionary tale.
Speaker 3 (08:25):
So let's dig into the practical part.
How do you actually findlicensees, the person who is
receiving your license?
This is where strategy meetslegwork.
Speaker 1 (08:36):
Exactly.
It's not about waiting forsomeone to knock on your door.
It's about knowing where tolook and why.
Speaker 3 (08:44):
First look at companies in the same CPC patent
classes.
Cpc is the Cooperative PatentClassification System.
If your patent is in a classabout battery chemistry, any
company filing in that sameclass is already working in that
field their potential licenses.
(09:04):
It's like browsing in the sameaisle of a supermarket.
You know you're all interestedin the same thing.
Speaker 1 (09:12):
And the beauty is you don't even need insider info.
Patent databases are public.
If you see the same companypopping up in your CPC
neighborhood, that's your cue.
Speaker 3 (09:29):
Second, consider business models like ARM.
They don't manufacture chipsthemselves.
They design CPU architecturesand license those designs to
semiconductor companies likeQualcomm or Samsung.
That shows how a whole industrycan be built on licensing
instead of selling physical good.
Speaker 1 (09:43):
A reminder that licensing isn't a side hustle.
It can be the business.
Speaker 3 (09:49):
Third, standards and certification programs.
Think about Wi-Fi or USB logoson devices.
Those logos mean the company ispart of a licensing program.
If your technology fits into anindustry standard or could
become part of one, licenseswill often come to you.
The same goes for greencertifications, sustainability
(10:10):
labels or organic food standards.
If there is a badge companieswant on their products,
licensing is how they get it.
Speaker 1 (10:19):
Standards aren't just paperwork.
They're magnets.
People pay to wear the badge.
Speaker 3 (10:23):
Fourth, brand and character licensing.
Big entertainment companiesdon't make all the lunchboxes,
pajamas or cereal tie-insthemselves.
They license their charactersto manufacturers who specialize
in each product.
If you are a brand owner, yourlicenses are often those
(10:43):
factories and productspecialists, the people who know
how to make and distribute intheir category.
Speaker 1 (10:50):
Find the folks who already live in that supply
chain.
They're the ones who can takeyour character or logo and put
it on 10,000 backpacks tomorrow.
Speaker 3 (10:57):
FF's university tech transfer offices.
They're not just for inventorslooking to license out.
If you're searching forlicensees, you can learn from
how these offices present theirportfolios.
They make assets visible, easyto browse and attractive for
potential partners.
It's a model to copy whenyou're trying to showcase your
(11:18):
own IP.
Speaker 1 (11:20):
And some universities even list out who's already
licensing their stuff.
That's basically a map ofactive licensees by sector.
Speaker 3 (11:28):
Six, if your IP is software, look at developer
ecosystems, app stores,salesforce, appexchange, shopify
apps or even open sourcecommunities Licenses.
Speaker 1 (11:42):
here are companies that want to feature fast
without building it from scratch.
And don't forget SaaSmarketplaces.
If you have code or an API,resellers and integrators can
become licensees too.
Speaker 3 (11:51):
Seventh, for data or content licensing target
aggregators and brokers In mediamusic libraries license songs
for ads or films.
In data brokers collect andresell data sets for marketing,
finance or healthcare.
If you have curated data orspecialized content, your
licenses may be these middleplayers who bundle your IP into
(12:14):
packages for end users.
Speaker 1 (12:16):
They're the wholesalers.
You give them the goods, theyslice and dice and you get
royalties from every bundle sold.
Speaker 3 (12:23):
Eighth trade shows.
These are gold mines forfinding licenses For consumer
products.
There's Licensing Expo in LasVegas For fashion and textiles,
premier Vision in Paris Forbooks and publishing, the
Frankfurt Book Fair Forelectronics, ces in Las Vegas or
Mobile World Congress inBarcelona For gaming, gadc in
(12:46):
San Francisco or Gamescom inCologne For toys, the
Spielgarten Messe, nuremberg.
Even niche shows like BioInternational for biotech or
Renexfo for wine and spirits canbe key.
The trick is don't just show upBook meetings at least two
weeks ahead and bring aone-pager plus a demo.
(13:10):
And bring a one pager plus ademo Walk the floor prepared.
Speaker 1 (13:13):
The random handshake in the aisle is great, but the
real deals happen in thosepre-booked coffee slots.
Speaker 3 (13:20):
Ninth, consider tariffs and trade rules.
If you're going internationallet's say you license your
product to a manufactureroverseas If tariffs make imports
more expensive, your licenseesmargins shrink and so does your
royalty base.
Before signing, study thetariff schedules and trade
agreements that affect yourfield.
(13:41):
Otherwise you could end up witha license that looks profitable
on paper but loses value inpractice Exactly.
Speaker 1 (13:49):
If customs slaps 20% on your licensed product, don't
be surprised when your globalexpansion turns into global
disappointment.
Speaker 3 (13:57):
So finding licensees is about mapping who needs your
IP, showing up where they areand understanding the market
realities, tariffs included,before you sign.
Speaker 1 (14:10):
Because the right licensee isn't just someone who
can pay, it's someone who willpay sustainably in their market.
Speaker 2 (14:18):
Intangiblia, the podcast of intangible law.
Playing talk about intellectualproperty.
Speaker 3 (14:25):
When people talk about negotiation frameworks, it
can sound abstract.
Let's slow it down andtranslate these into tools you
can actually use when licensing.
Speaker 1 (14:35):
Good, because nothing's worse than buzzwords
without instructions.
Speaker 3 (14:38):
Let's start with interest-based negotiation from
the Harvard model.
The idea is to separatepositions from interests.
A position is what someone saysthey want I need 10% royalties
and interest is the reasonbehind it.
Maybe they want security,recognition or predictability.
Speaker 1 (14:58):
Think of it like ordering at a restaurant.
The position is I want pasta,the interest is I'm starving but
I need something quick.
If the pasta takes an hour, thewaiter can suggest a faster
dish.
That still solves the problem.
Speaker 3 (15:11):
takes an hour, the waiter can suggest a faster dish
.
That still solves the problem.
In licensing that might meanexploring alternative structures
.
If a licensee says we can'tafford 10%, maybe the real
interest is cash flow.
You could propose 5% plus alump sum, upfront or lower
royalties with guaranteedminimums.
Speaker 1 (15:31):
That's how you move from deadlock to options that
actually work.
Speaker 3 (15:35):
Next BATNA, your best alternative to a negotiated
agreement.
This is your plan B if talkscollapse.
You need to know it beforewalking into the room.
Maybe your BATNA is signingwith another licensee in a
smaller territory, keeping thetechnology for in-house use or
even waiting six months forbetter market conditions.
Speaker 1 (15:57):
And here's the brutal truth the side with the
stronger BATNA has more power.
If you don't know yours, you'llaccept terms out of fear of
losing the deal.
Speaker 3 (16:06):
Exactly In practical terms.
You should write it down what'sthe best alternative, what's
the realistic outcome and what'syour absolute walkaway point.
Having it in black and whitekeeps you from making emotional
concessions.
Speaker 1 (16:20):
Because hope is not a strategy.
If your BATNA is better thantheir offer, stand up and walk
let's talk about mesos multiple,equivalent, simultaneous offers
.
Speaker 3 (16:36):
Instead of giving one proposal and waiting, you
present two or three options atonce.
Each one works for you, but indifferent ways.
Speaker 1 (16:43):
For example, option A is 8% royalties, worldwide,
non-exclusive.
Option B is 5% royalties, butwith a big upfront payment and
exclusivity in Europe.
Option C is 6% royalties plusperformance milestones.
You're fine with any of them.
Speaker 3 (17:00):
This technique does three things.
First, it shows flexibility.
Second, it reveals what thelicensee cares about most
royalty rate territory orupfront cash.
Speaker 1 (17:13):
Third, it anchors the conversation around choices
that all favor you, and itavoids the worst trap endless
back and forth over one number,while everything else stays
fuzzy.
Speaker 3 (17:25):
Finally, let's borrow from Big Four advisors.
They don't just argue, theymodel.
One tool is a scenario table, agrid that shows how the deal
performs under differentoutcomes, For example, low,
medium and high sold scenarios.
What does your royalty looklike in each case?
Speaker 1 (17:44):
It's like stress testing the deal.
If sales flop, do you stillcover costs?
If sales explode, do you regretcapping your royalties too low?
Speaker 3 (17:53):
Then there's sensitivity analysis.
Pick two or three key variableslike sales volume, tariff rates
or exchange rates, and see howsmall changes affect your
revenue.
If a 5% tariff wipes out halfyour royalty, you'll want to
know before signing.
(18:13):
Better to find out with Excelthan with bankruptcy court and
the deal canvas.
Speaker 1 (18:20):
This is a one-page map of the deal, the asset scope
, royalty model, exclusivity,risks and red lines.
You bring it to meetings tokeep focus.
If a proposal doesn't fit thecanvas, you know it's off track.
Speaker 3 (18:32):
Think of it as your compass.
Without it, you're justwandering through, fine print.
Speaker 1 (18:38):
So practical negotiation isn't about who
talks louder.
It's about uncovering interests, knowing your BATNA, offering
mezzos to test priorities andrunning the numbers with
scenario tables and canvases.
Speaker 3 (18:50):
And remembering the golden rule if you don't prepare
, the other side already won.
Speaker 1 (18:55):
Oh, the red flags.
When we talk about red flags inlicensing, it's not just
clauses in the contract, it'salso the behavior and demands of
the licensee across the table.
Let's walk through the onesthat should make you stop and
think twice.
Speaker 3 (19:11):
And some of these flags are even red.
They're neon with alertsblaring.
Speaker 1 (19:18):
Licensees who overpromise?
Speaker 3 (19:20):
First the licensee who overpromises.
They claim they can sell inevery market, dominate
distribution and triple yourroyalties in a year.
But when you check their trackrecord, there is no evidence.
Speaker 1 (19:39):
If it sounds too good to be true, it usually is
Over-promisers becomeunder-deliverers.
Speaker 3 (19:45):
Reluctance to share financials or capacity.
Speaker 1 (19:49):
Second, reluctance to share basic financials sales
history or capacity.
A serious licensee should beable to show you proof past
performance, market reach andresources to scale.
Speaker 3 (20:02):
If they can't show numbers, they don't have numbers
and you don't want yourroyalties resting on ghosts.
Resistance to performancemilestones.
Third resistance to performancemilestones.
If a licensee refuses minimumsales targets or guaranteed
royalties, that's a red flag.
Speaker 1 (20:36):
It signals they want rights without accountability.
Milestones aren't punishment,they're proof they plan to
actually do something Aggressive, push for exclusivity.
Fourth, licensees who demandbroad exclusivity from the start
.
If they want entire territoriesor industries locked up without
showing the ability to coverthem, that's risky.
Exclusivity should always beearned through performance.
Speaker 3 (20:48):
Otherwise, you've just gifted them the keys to a
market they might never open.
Speaker 1 (20:52):
Avoiding audit or reporting obligations.
Speaker 3 (20:55):
Fifth, refusal to accept audits or transparent
reporting If a licensee pushesback against standard reporting
clauses.
Ask why Licensors needvisibility to calculate
royalties correctly.
Speaker 1 (21:10):
If someone hates the idea of being audited, maybe
they're planning to under-report.
Speaker 3 (21:16):
Poor reputation in the market.
Speaker 1 (21:18):
Sixth licensees with a poor reputation, whether it's
litigation history, ipinfringement cases or complaints
from partners, do a backgroundcheck.
A bad reputation usually comeswith bad habits.
Speaker 3 (21:32):
Licensing to a known pirate is like asking a wolf to
guard your ship.
Spoiler the ship don't make it.
Speaker 1 (21:41):
Unrealistic royalty negotiations.
Speaker 3 (21:43):
Devons licenses who demand unrealistically low
royalty rates or who refusestandard structures like upfront
fees or minimum guarantees.
It may mean they don't valuethe IP or lack resources to
invest.
Speaker 1 (21:59):
If they won't pay fairly at the start, they won't
magically become generous later.
Speaker 3 (22:03):
Weak distribution or market knowledge.
Speaker 1 (22:06):
Eighth licensees who lack real distribution networks
or market knowledge.
They may have ambition, butwithout reach.
Your IP will sit on a shelf.
Speaker 3 (22:14):
Ambition without infrastructure is just wishful
thinking.
Legal or regulatory red flags.
Ninth licenses operating incountries with high tariffs,
weak enforcement or regulatoryinstability without a plan to
manage those risks.
If tariffs or customs dutiesmake your products uncompetitive
(22:36):
, your royalty stream dries up.
Speaker 1 (22:39):
Understand the trade landscape before you sign,
otherwise you're licensing intoa black hole.
Speaker 3 (22:46):
So the red flags aren't just in the contract,
they're in who you choose as apartner.
Over-promising, lack oftransparency, refusal of
milestones, aggressiveexclusivity grabs, no reporting,
bad reputation, unrealisticroyalties, weak distribution and
poor regulatory awareness theseare warning signs.
Speaker 1 (23:07):
Spot them early and you'll save yourself from
signing with the wrong partner.
Miss them and you'll bebabysitting a disaster instead
of collecting royalties.
Speaker 3 (23:17):
Licenses aren't frozen in time, Markets change,
costs shift and sometimespartners just don't deliver.
So the big question is when doyou renegotiate, when do you
walk away and when do you takethem to court?
Speaker 1 (23:33):
Exactly Because sticking with a bad license is
like staying in a toxicrelationship You'll bleed money
and sleep badly.
When to renegotiate?
You renegotiate when the groundunder the deal has shifted.
Say, the licensees' sales areway below forecast or tariffs
and shipping costs doubled sinceyou signed.
Suddenly, the royalty modeldoesn't make sense anymore.
Speaker 3 (23:55):
Or the market explodes in a new direction.
Your software is now beingbundled into smart cars, not
just laptops.
That's growth.
But outside the old deal,perfect moment to sit back down
at the table.
Speaker 1 (24:08):
And sometimes it's legal change.
A new regulation could addcompliance costs the license
never accounted for.
That's a trigger for a rewritetoo, when to stop.
But let's be clear Sometimesthe problem isn't the world
changing, it's the partner.
If they keep missing payments,ignore quality standards or push
for more rights withoutdelivering, that's when you walk
(24:30):
.
Speaker 3 (24:30):
Yes, and if enforcing the license costs you more than
you're making, it's time to cutyour losses.
Ending a license isn't failure,it's protecting your IP.
Speaker 1 (24:42):
Think of it as pruning you cut a dead branch so
the tree can grow, and tosoothe Hy grow and to sue Hyrule
.
And suing is the last resort.
You go there when a licenseewon't pay, keeps using your IP
outside the deal or ignores curenotices.
Sometimes it's trademark misusethat threatens the brand itself
.
That's serious enough tojustify the fight.
Speaker 3 (25:04):
But only if the math works.
Lawsuits eat time, money andreputation.
If the harm is small, courtmight not be worth it, but if
royalties are bleeding out oryour brand is at stake, then
you're going hard Putting it alltogether.
Don't the rule of thumbRenegotiate when the market
changes.
Stop when the partner fails.
(25:25):
Sue when there's no other wayto protect your rights.
Speaker 1 (25:29):
And don't wait until it's a crisis.
Set review points in yourcontracts, check performance and
know your thresholds before youneed them.
Speaker 3 (25:38):
The way you're not guessing, you're managing.
Speaker 1 (25:42):
And remember, not every fight is worth it.
Sometimes walking awaygracefully is the smartest legal
strategy of all.
Speaker 3 (25:49):
Let's boil this down to some takeaways.
Speaker 1 (25:53):
Bullet points without the bullets.
Speaker 3 (25:55):
Number one a license isn't just about money, it's
about fit.
The wrong partner can sink yourbrand faster than low sales.
Speaker 1 (26:04):
Number two red flags don't fade with time.
If a licensee hides numbers,resists audits or demands too
much exclusivity, they'll keepdoing it.
Speaker 3 (26:13):
Number three contracts should breathe.
Build in milestones, reviewdates and triggers for
renegotiation.
That way you adjust before thedeal collapses.
Speaker 1 (26:24):
Number four know your off-ramps.
Walking away or suing isn'tfailure, it's control.
The smartest licensors knowwhen to fold.
Speaker 3 (26:35):
And number five licensing done right is power.
Think Lego and Star Wars, nikeand Jordan, Barbie and Warner
Bros.
These aren't side deals, theyare empire builders.
These aren't side deals, theyare empire builders.
Speaker 1 (26:48):
So the takeaway treat licenses like living systems,
protect them, prune them and, ifyou find the right match, let
them grow wild.
Speaker 3 (26:56):
So that's our journey through the highs and lows of
licensing, from spotting redflags to celebrating
partnerships that made history.
Speaker 1 (27:09):
And remember, this isn't theory.
These are the moves that decidewhether your IP becomes a
footnote or a phenomenon.
Speaker 3 (27:12):
If you want to go deeper into protecting and
growing your own ideas, I'vejust published a workbook called
Protection for the InventiveMind.
It's packed with practicalexercises, hands-on tools and
ways to leverage AI to sharpenyour strategy.
And ways to leverage AI tosharpen your strategy.
Speaker 1 (27:29):
Think of it as a training ground.
You don't just read, youactually build your own
protection map.
Speaker 3 (27:36):
You can find Protection from Inventive Mind
on Amazon.
In print and Kindle.
Speaker 1 (27:39):
Do yes, protect smart , license smarter and keep
building what's yours.
Speaker 3 (27:45):
Thanks for listening to Intangibilia.
I'm Leticia Caminero.
Speaker 1 (27:49):
And I'm Artemisa, your AI co-pilot, not your
lawyer, not your accountant, butdefinitely your sassiest
sidekick.
Speaker 3 (27:56):
See you in the next one.
Speaker 2 (28:00):
Thank you for listening to Intangibilia, the
podcast of Intangible Lawplaying talk about intellectual
property.
Did you like what we talkedtoday?
Please share with your network.
Do you want to learn more aboutintellectual property?
Subscribe now on your favoritepodcast player.
Follow us on Instagram,facebook, linkedin and Twitter.
(28:20):
Visit our websitewwwintangibliacom.
Copyright Leticia Caminero 2020.
All rights reserved.
This podcast is provided forinformation purposes only.
Licensing is the art of turning ideas into journeys.
A song finds its passportthrough a license.
A design earns its passage intomarkets.
A formula crosses borders.
Under carefully chosen terms,each agreement is both promise
and puzzle.
Royalties measure trust.
Exclusivity carves territory.
Obligations balance ambitionwith restraint.
Done well, a license amplifiescreation beyond its origin.
(00:22):
Done poorly, it shackles thevery idea it was meant to set
free.
Today, we unfold the eleganceand the intrigue of licensing,
the quiet architecture behindempires of innovation.
Speaker 2 (00:36):
You are listening to Intangiblia, the podcast of
intangible law plain talk aboutintellectual property.
Please welcome your host,leticia Caminero.
Speaker 3 (00:47):
Welcome back to Intangiblia.
I'm Leticia Caminero.
Today's episode is inspired bymy new workbook Protection for
the Invented Mind.
If you like what you hear,you'll find more practical
exercises, tools and AIstrategies inside the book
available on.
Speaker 1 (01:04):
Amazon, and I'm Artemisa, your AI co-host here,
to keep things bold and maybe alittle mischievous.
Speaker 3 (01:13):
Today we're talking about licensing.
Speaker 1 (01:16):
The word might sound dry but trust me, it's anything
but Licensing is how sneakersend up on catwalks, how songs
get into blockbusters and howone contract can make or break a
fortune.
Speaker 3 (01:28):
We look at what makes a good license, how to
negotiate like a pro, and whenit's time to renegotiate or just
cut your losses.
Speaker 1 (01:37):
Bless the red flags, the royalty traps and the sneaky
clauses that could keep you upat night.
Speaker 3 (01:42):
And before we dive in a reminder Artemisa is an AI
and my voice here has even beencloned with AI tools.
Speaker 1 (01:51):
So no, leticia is not your lawyer.
If you're about to sign a deal,call your actual counsel.
Don't show up in court sayingbut Artemisa said.
Speaker 3 (02:00):
Please don't.
This is not legal advice.
It's just your front row seatto the wall of licensing.
Before we go any further, let'sclear the air.
What exactly is a license?
Too often people throw the wordaround without knowing what it
really means.
Speaker 1 (02:18):
And no, it's not just paperwork lawyers invent to
keep busy invent to keep busy Alicensee's permission.
Speaker 3 (02:23):
it lets someone use intellectual property like music
, software or a trademarkwithout giving up ownership.
The creator keeps the rightsbut allows others to use them
under strict conditions.
Speaker 1 (02:37):
So think of it less like selling your house and more
like renting out a room.
You're still the landlord, butthe tenant gets to live there
until the lease runs out or theybreak the rules.
Speaker 3 (02:48):
Exactly that's the big difference from an
assignment which actuallytransfers ownership.
A license is access, not ahandover.
Speaker 1 (02:58):
And the fine print.
That's where all the fun andtrouble happens.
Speaker 3 (03:03):
So now that we know what a license is, let's ask the
real question what can youactually license?
The answer is almost any kindof intellectual property patents
, trademarks, copyrights,designs, even trade secrets, If
you handle them carefully.
Speaker 1 (03:22):
If it has value and the law protects it, chances are
someone somewhere is willing tolicense it.
Songs, logos, software code,character rights, formulas you
name it.
Speaker 3 (03:32):
Patterns are classic.
You invent a new technology and, instead of manufacturing
everything yourself, you licenseit out to companies that
already have the distributionnetworks, which is how small
inventors sometimes end upcollecting royalties from global
giants without running a singlefactory.
(03:53):
Trademarks are also heavilylicensed.
Think of fashion brands, sportsteams or even your favorite
cartoon character appearing oncereal boxes.
That's trademark licensing inaction.
Speaker 1 (04:06):
And it's a goldmine when done right.
Just ask Disney how manypajamas Mickey Mouse has sold.
Speaker 3 (04:11):
Copyright licensing drives music, film publishing
and now streaming.
And then there are the lessobvious ones, like trade secrets
or databases.
As long as you protect themproperly, you can license
know-how, just like you licensepatents.
Speaker 1 (04:28):
Still the short version.
If it can be protected, it canprobably be licensed.
The trick is making sure youdon't give away more than you
should.
Speaker 3 (04:36):
So when are you actually ready to license?
Let's break it down step bystep.
Speaker 1 (04:41):
Yes, because rushing in half prepared is the fastest
way to sign a deal you'll regret.
Speaker 3 (04:46):
Step one is ownership .
You need to show clearly thatyou own what you're offering.
That means registrations orfilings, if they exist, and
assignments from anyone whoworked on the invention or
creative work.
No missing signatures, no halffinished paperwork.
Speaker 1 (05:07):
And no surprises If you don't clean up ownership
issues before negotiations, yourfuture licensee will find them
and use them to drive your pricedown.
Speaker 3 (05:18):
Step two is clarity of scope.
You need to map exactly whatyou're licensing for patents.
That means tying features ofyour product or technology back
to specific patent claims.
If claim one covers a chemicalformula, show how your product
uses it.
If claim two covers a method,demonstrate where it fits.
(05:39):
Don't just wave around a patentnumber.
Prove the connection.
Speaker 1 (05:43):
Otherwise you're just flexing paper and licenses want
substance, not citations.
Speaker 3 (05:48):
For copyright be precise about what version of a
song, code or text is beinglicensed.
If it's software, are wetalking about version 1 or
version 3.5?
That matters.
Speaker 1 (06:01):
Nothing kills trust like a licensee thinking they
bought the rights to Beyonce andfinding out they got the demo
tape and finding out they gotthe demo tape.
Speaker 3 (06:14):
Step three is protection during talks.
Before you reveal anythingsensitive, sign an NDA, a
non-discussional agreement.
It's a contract that says thepotential licensee can use,
share or leak the confidentialinformation you disclose.
Ndas often also include a linesaying this doesn't oblige
either side to sign a license,but it allows us to start
negotiations safely.
Speaker 1 (06:36):
In other words, you get to show off your crown
jewels without worrying someonewill run off with them before
you agree on price.
Speaker 3 (06:42):
Step four is packaging.
A license is easier tonegotiate if you've prepared the
asset for someone else to stepinto.
That means a clean data room,technical notes, demos, brand
guidelines, quality standards,maybe even ethics about
integration.
Speaker 1 (06:59):
Think of it as staging the apartment before you
rent it.
No one's signing if the placelooks like a storage closet
Worth fighting for.
Speaker 3 (07:06):
You need to propose a royalty model that makes sense.
Don't show up with vagueguesses.
Have a royalty base that can bemeasured like per unit sold or
percentage of net sales.
If you want a deeper dive onvaluation methods and how to
calculate royalties, go back toepisode 15, season five worth
fighting for IP lawsuits and theart of valuation.
(07:28):
We explain the models in detailthere.
Speaker 1 (07:32):
Because if you don't know your number, they'll give
you theirs and, trust me, itwon't be generous.
Speaker 3 (07:37):
And finally, step six governance.
Decide the rules before younegotiate.
Will the license be exclusiveor non-exclusive?
Will suit licensing be allowedand under what conditions?
What reporting and audit rightsdo you need?
How will disputes be handledand what happens when the
(07:58):
license ends?
Speaker 1 (07:59):
If you don't pre-plan the exit, you'll end up trapped
in your own contract and, trustme, no one wants a forever
clause.
They didn't see coming.
Speaker 3 (08:06):
So you're ready to license when you can prove
ownership, define scope, protectyour secrets, package your
asset, set a clear value andestablish the rules of the road.
Speaker 1 (08:19):
Do that and you'll walk into negotiations with
confidence.
Skip it and you're just anothercautionary tale.
Speaker 3 (08:25):
So let's dig into the practical part.
How do you actually findlicensees, the person who is
receiving your license?
This is where strategy meetslegwork.
Speaker 1 (08:36):
Exactly.
It's not about waiting forsomeone to knock on your door.
It's about knowing where tolook and why.
Speaker 3 (08:44):
First look at companies in the same CPC patent
classes.
Cpc is the Cooperative PatentClassification System.
If your patent is in a classabout battery chemistry, any
company filing in that sameclass is already working in that
field their potential licenses.
(09:04):
It's like browsing in the sameaisle of a supermarket.
You know you're all interestedin the same thing.
Speaker 1 (09:12):
And the beauty is you don't even need insider info.
Patent databases are public.
If you see the same companypopping up in your CPC
neighborhood, that's your cue.
Speaker 3 (09:29):
Second, consider business models like ARM.
They don't manufacture chipsthemselves.
They design CPU architecturesand license those designs to
semiconductor companies likeQualcomm or Samsung.
That shows how a whole industrycan be built on licensing
instead of selling physical good.
Speaker 1 (09:43):
A reminder that licensing isn't a side hustle.
It can be the business.
Speaker 3 (09:49):
Third, standards and certification programs.
Think about Wi-Fi or USB logoson devices.
Those logos mean the company ispart of a licensing program.
If your technology fits into anindustry standard or could
become part of one, licenseswill often come to you.
The same goes for greencertifications, sustainability
(10:10):
labels or organic food standards.
If there is a badge companieswant on their products,
licensing is how they get it.
Speaker 1 (10:19):
Standards aren't just paperwork.
They're magnets.
People pay to wear the badge.
Speaker 3 (10:23):
Fourth, brand and character licensing.
Big entertainment companiesdon't make all the lunchboxes,
pajamas or cereal tie-insthemselves.
They license their charactersto manufacturers who specialize
in each product.
If you are a brand owner, yourlicenses are often those
(10:43):
factories and productspecialists, the people who know
how to make and distribute intheir category.
Speaker 1 (10:50):
Find the folks who already live in that supply
chain.
They're the ones who can takeyour character or logo and put
it on 10,000 backpacks tomorrow.
Speaker 3 (10:57):
FF's university tech transfer offices.
They're not just for inventorslooking to license out.
If you're searching forlicensees, you can learn from
how these offices present theirportfolios.
They make assets visible, easyto browse and attractive for
potential partners.
It's a model to copy whenyou're trying to showcase your
(11:18):
own IP.
Speaker 1 (11:20):
And some universities even list out who's already
licensing their stuff.
That's basically a map ofactive licensees by sector.
Speaker 3 (11:28):
Six, if your IP is software, look at developer
ecosystems, app stores,salesforce, appexchange, shopify
apps or even open sourcecommunities Licenses.
Speaker 1 (11:42):
here are companies that want to feature fast
without building it from scratch.
And don't forget SaaSmarketplaces.
If you have code or an API,resellers and integrators can
become licensees too.
Speaker 3 (11:51):
Seventh, for data or content licensing target
aggregators and brokers In mediamusic libraries license songs
for ads or films.
In data brokers collect andresell data sets for marketing,
finance or healthcare.
If you have curated data orspecialized content, your
licenses may be these middleplayers who bundle your IP into
(12:14):
packages for end users.
Speaker 1 (12:16):
They're the wholesalers.
You give them the goods, theyslice and dice and you get
royalties from every bundle sold.
Speaker 3 (12:23):
Eighth trade shows.
These are gold mines forfinding licenses For consumer
products.
There's Licensing Expo in LasVegas For fashion and textiles,
premier Vision in Paris Forbooks and publishing, the
Frankfurt Book Fair Forelectronics, ces in Las Vegas or
Mobile World Congress inBarcelona For gaming, gadc in
(12:46):
San Francisco or Gamescom inCologne For toys, the
Spielgarten Messe, nuremberg.
Even niche shows like BioInternational for biotech or
Renexfo for wine and spirits canbe key.
The trick is don't just show upBook meetings at least two
weeks ahead and bring aone-pager plus a demo.
(13:10):
And bring a one pager plus ademo Walk the floor prepared.
Speaker 1 (13:13):
The random handshake in the aisle is great, but the
real deals happen in thosepre-booked coffee slots.
Speaker 3 (13:20):
Ninth, consider tariffs and trade rules.
If you're going internationallet's say you license your
product to a manufactureroverseas If tariffs make imports
more expensive, your licenseesmargins shrink and so does your
royalty base.
Before signing, study thetariff schedules and trade
agreements that affect yourfield.
(13:41):
Otherwise you could end up witha license that looks profitable
on paper but loses value inpractice Exactly.
Speaker 1 (13:49):
If customs slaps 20% on your licensed product, don't
be surprised when your globalexpansion turns into global
disappointment.
Speaker 3 (13:57):
So finding licensees is about mapping who needs your
IP, showing up where they areand understanding the market
realities, tariffs included,before you sign.
Speaker 1 (14:10):
Because the right licensee isn't just someone who
can pay, it's someone who willpay sustainably in their market.
Speaker 2 (14:18):
Intangiblia, the podcast of intangible law.
Playing talk about intellectualproperty.
Speaker 3 (14:25):
When people talk about negotiation frameworks, it
can sound abstract.
Let's slow it down andtranslate these into tools you
can actually use when licensing.
Speaker 1 (14:35):
Good, because nothing's worse than buzzwords
without instructions.
Speaker 3 (14:38):
Let's start with interest-based negotiation from
the Harvard model.
The idea is to separatepositions from interests.
A position is what someone saysthey want I need 10% royalties
and interest is the reasonbehind it.
Maybe they want security,recognition or predictability.
Speaker 1 (14:58):
Think of it like ordering at a restaurant.
The position is I want pasta,the interest is I'm starving but
I need something quick.
If the pasta takes an hour, thewaiter can suggest a faster
dish.
That still solves the problem.
Speaker 3 (15:11):
takes an hour, the waiter can suggest a faster dish
.
That still solves the problem.
In licensing that might meanexploring alternative structures
.
If a licensee says we can'tafford 10%, maybe the real
interest is cash flow.
You could propose 5% plus alump sum, upfront or lower
royalties with guaranteedminimums.
Speaker 1 (15:31):
That's how you move from deadlock to options that
actually work.
Speaker 3 (15:35):
Next BATNA, your best alternative to a negotiated
agreement.
This is your plan B if talkscollapse.
You need to know it beforewalking into the room.
Maybe your BATNA is signingwith another licensee in a
smaller territory, keeping thetechnology for in-house use or
even waiting six months forbetter market conditions.
Speaker 1 (15:57):
And here's the brutal truth the side with the
stronger BATNA has more power.
If you don't know yours, you'llaccept terms out of fear of
losing the deal.
Speaker 3 (16:06):
Exactly In practical terms.
You should write it down what'sthe best alternative, what's
the realistic outcome and what'syour absolute walkaway point.
Having it in black and whitekeeps you from making emotional
concessions.
Speaker 1 (16:20):
Because hope is not a strategy.
If your BATNA is better thantheir offer, stand up and walk
let's talk about mesos multiple,equivalent, simultaneous offers
.
Speaker 3 (16:36):
Instead of giving one proposal and waiting, you
present two or three options atonce.
Each one works for you, but indifferent ways.
Speaker 1 (16:43):
For example, option A is 8% royalties, worldwide,
non-exclusive.
Option B is 5% royalties, butwith a big upfront payment and
exclusivity in Europe.
Option C is 6% royalties plusperformance milestones.
You're fine with any of them.
Speaker 3 (17:00):
This technique does three things.
First, it shows flexibility.
Second, it reveals what thelicensee cares about most
royalty rate territory orupfront cash.
Speaker 1 (17:13):
Third, it anchors the conversation around choices
that all favor you, and itavoids the worst trap endless
back and forth over one number,while everything else stays
fuzzy.
Speaker 3 (17:25):
Finally, let's borrow from Big Four advisors.
They don't just argue, theymodel.
One tool is a scenario table, agrid that shows how the deal
performs under differentoutcomes, For example, low,
medium and high sold scenarios.
What does your royalty looklike in each case?
Speaker 1 (17:44):
It's like stress testing the deal.
If sales flop, do you stillcover costs?
If sales explode, do you regretcapping your royalties too low?
Speaker 3 (17:53):
Then there's sensitivity analysis.
Pick two or three key variableslike sales volume, tariff rates
or exchange rates, and see howsmall changes affect your
revenue.
If a 5% tariff wipes out halfyour royalty, you'll want to
know before signing.
(18:13):
Better to find out with Excelthan with bankruptcy court and
the deal canvas.
Speaker 1 (18:20):
This is a one-page map of the deal, the asset scope
, royalty model, exclusivity,risks and red lines.
You bring it to meetings tokeep focus.
If a proposal doesn't fit thecanvas, you know it's off track.
Speaker 3 (18:32):
Think of it as your compass.
Without it, you're justwandering through, fine print.
Speaker 1 (18:38):
So practical negotiation isn't about who
talks louder.
It's about uncovering interests, knowing your BATNA, offering
mezzos to test priorities andrunning the numbers with
scenario tables and canvases.
Speaker 3 (18:50):
And remembering the golden rule if you don't prepare
, the other side already won.
Speaker 1 (18:55):
Oh, the red flags.
When we talk about red flags inlicensing, it's not just
clauses in the contract, it'salso the behavior and demands of
the licensee across the table.
Let's walk through the onesthat should make you stop and
think twice.
Speaker 3 (19:11):
And some of these flags are even red.
They're neon with alertsblaring.
Speaker 1 (19:18):
Licensees who overpromise?
Speaker 3 (19:20):
First the licensee who overpromises.
They claim they can sell inevery market, dominate
distribution and triple yourroyalties in a year.
But when you check their trackrecord, there is no evidence.
Speaker 1 (19:39):
If it sounds too good to be true, it usually is
Over-promisers becomeunder-deliverers.
Speaker 3 (19:45):
Reluctance to share financials or capacity.
Speaker 1 (19:49):
Second, reluctance to share basic financials sales
history or capacity.
A serious licensee should beable to show you proof past
performance, market reach andresources to scale.
Speaker 3 (20:02):
If they can't show numbers, they don't have numbers
and you don't want yourroyalties resting on ghosts.
Resistance to performancemilestones.
Third resistance to performancemilestones.
If a licensee refuses minimumsales targets or guaranteed
royalties, that's a red flag.
Speaker 1 (20:36):
It signals they want rights without accountability.
Milestones aren't punishment,they're proof they plan to
actually do something Aggressive, push for exclusivity.
Fourth, licensees who demandbroad exclusivity from the start
.
If they want entire territoriesor industries locked up without
showing the ability to coverthem, that's risky.
Exclusivity should always beearned through performance.
Speaker 3 (20:48):
Otherwise, you've just gifted them the keys to a
market they might never open.
Speaker 1 (20:52):
Avoiding audit or reporting obligations.
Speaker 3 (20:55):
Fifth, refusal to accept audits or transparent
reporting If a licensee pushesback against standard reporting
clauses.
Ask why Licensors needvisibility to calculate
royalties correctly.
Speaker 1 (21:10):
If someone hates the idea of being audited, maybe
they're planning to under-report.
Speaker 3 (21:16):
Poor reputation in the market.
Speaker 1 (21:18):
Sixth licensees with a poor reputation, whether it's
litigation history, ipinfringement cases or complaints
from partners, do a backgroundcheck.
A bad reputation usually comeswith bad habits.
Speaker 3 (21:32):
Licensing to a known pirate is like asking a wolf to
guard your ship.
Spoiler the ship don't make it.
Speaker 1 (21:41):
Unrealistic royalty negotiations.
Speaker 3 (21:43):
Devons licenses who demand unrealistically low
royalty rates or who refusestandard structures like upfront
fees or minimum guarantees.
It may mean they don't valuethe IP or lack resources to
invest.
Speaker 1 (21:59):
If they won't pay fairly at the start, they won't
magically become generous later.
Speaker 3 (22:03):
Weak distribution or market knowledge.
Speaker 1 (22:06):
Eighth licensees who lack real distribution networks
or market knowledge.
They may have ambition, butwithout reach.
Your IP will sit on a shelf.
Speaker 3 (22:14):
Ambition without infrastructure is just wishful
thinking.
Legal or regulatory red flags.
Ninth licenses operating incountries with high tariffs,
weak enforcement or regulatoryinstability without a plan to
manage those risks.
If tariffs or customs dutiesmake your products uncompetitive
(22:36):
, your royalty stream dries up.
Speaker 1 (22:39):
Understand the trade landscape before you sign,
otherwise you're licensing intoa black hole.
Speaker 3 (22:46):
So the red flags aren't just in the contract,
they're in who you choose as apartner.
Over-promising, lack oftransparency, refusal of
milestones, aggressiveexclusivity grabs, no reporting,
bad reputation, unrealisticroyalties, weak distribution and
poor regulatory awareness theseare warning signs.
Speaker 1 (23:07):
Spot them early and you'll save yourself from
signing with the wrong partner.
Miss them and you'll bebabysitting a disaster instead
of collecting royalties.
Speaker 3 (23:17):
Licenses aren't frozen in time, Markets change,
costs shift and sometimespartners just don't deliver.
So the big question is when doyou renegotiate, when do you
walk away and when do you takethem to court?
Speaker 1 (23:33):
Exactly Because sticking with a bad license is
like staying in a toxicrelationship You'll bleed money
and sleep badly.
When to renegotiate?
You renegotiate when the groundunder the deal has shifted.
Say, the licensees' sales areway below forecast or tariffs
and shipping costs doubled sinceyou signed.
Suddenly, the royalty modeldoesn't make sense anymore.
Speaker 3 (23:55):
Or the market explodes in a new direction.
Your software is now beingbundled into smart cars, not
just laptops.
That's growth.
But outside the old deal,perfect moment to sit back down
at the table.
Speaker 1 (24:08):
And sometimes it's legal change.
A new regulation could addcompliance costs the license
never accounted for.
That's a trigger for a rewritetoo, when to stop.
But let's be clear Sometimesthe problem isn't the world
changing, it's the partner.
If they keep missing payments,ignore quality standards or push
for more rights withoutdelivering, that's when you walk
(24:30):
.
Speaker 3 (24:30):
Yes, and if enforcing the license costs you more than
you're making, it's time to cutyour losses.
Ending a license isn't failure,it's protecting your IP.
Speaker 1 (24:42):
Think of it as pruning you cut a dead branch so
the tree can grow, and tosoothe Hy grow and to sue Hyrule
.
And suing is the last resort.
You go there when a licenseewon't pay, keeps using your IP
outside the deal or ignores curenotices.
Sometimes it's trademark misusethat threatens the brand itself
.
That's serious enough tojustify the fight.
Speaker 3 (25:04):
But only if the math works.
Lawsuits eat time, money andreputation.
If the harm is small, courtmight not be worth it, but if
royalties are bleeding out oryour brand is at stake, then
you're going hard Putting it alltogether.
Don't the rule of thumbRenegotiate when the market
changes.
Stop when the partner fails.
(25:25):
Sue when there's no other wayto protect your rights.
Speaker 1 (25:29):
And don't wait until it's a crisis.
Set review points in yourcontracts, check performance and
know your thresholds before youneed them.
Speaker 3 (25:38):
The way you're not guessing, you're managing.
Speaker 1 (25:42):
And remember, not every fight is worth it.
Sometimes walking awaygracefully is the smartest legal
strategy of all.
Speaker 3 (25:49):
Let's boil this down to some takeaways.
Speaker 1 (25:53):
Bullet points without the bullets.
Speaker 3 (25:55):
Number one a license isn't just about money, it's
about fit.
The wrong partner can sink yourbrand faster than low sales.
Speaker 1 (26:04):
Number two red flags don't fade with time.
If a licensee hides numbers,resists audits or demands too
much exclusivity, they'll keepdoing it.
Speaker 3 (26:13):
Number three contracts should breathe.
Build in milestones, reviewdates and triggers for
renegotiation.
That way you adjust before thedeal collapses.
Speaker 1 (26:24):
Number four know your off-ramps.
Walking away or suing isn'tfailure, it's control.
The smartest licensors knowwhen to fold.
Speaker 3 (26:35):
And number five licensing done right is power.
Think Lego and Star Wars, nikeand Jordan, Barbie and Warner
Bros.
These aren't side deals, theyare empire builders.
These aren't side deals, theyare empire builders.
Speaker 1 (26:48):
So the takeaway treat licenses like living systems,
protect them, prune them and, ifyou find the right match, let
them grow wild.
Speaker 3 (26:56):
So that's our journey through the highs and lows of
licensing, from spotting redflags to celebrating
partnerships that made history.
Speaker 1 (27:09):
And remember, this isn't theory.
These are the moves that decidewhether your IP becomes a
footnote or a phenomenon.
Speaker 3 (27:12):
If you want to go deeper into protecting and
growing your own ideas, I'vejust published a workbook called
Protection for the InventiveMind.
It's packed with practicalexercises, hands-on tools and
ways to leverage AI to sharpenyour strategy.
And ways to leverage AI tosharpen your strategy.
Speaker 1 (27:29):
Think of it as a training ground.
You don't just read, youactually build your own
protection map.
Speaker 3 (27:36):
You can find Protection from Inventive Mind
on Amazon.
In print and Kindle.
Speaker 1 (27:39):
Do yes, protect smart , license smarter and keep
building what's yours.
Speaker 3 (27:45):
Thanks for listening to Intangibilia.
I'm Leticia Caminero.
Speaker 1 (27:49):
And I'm Artemisa, your AI co-pilot, not your
lawyer, not your accountant, butdefinitely your sassiest
sidekick.
Speaker 3 (27:56):
See you in the next one.
Speaker 2 (28:00):
Thank you for listening to Intangibilia, the
podcast of Intangible Lawplaying talk about intellectual
property.
Did you like what we talkedtoday?
Please share with your network.
Do you want to learn more aboutintellectual property?
Subscribe now on your favoritepodcast player.
Follow us on Instagram,facebook, linkedin and Twitter.
(28:20):
Visit our websitewwwintangibliacom.
Copyright Leticia Caminero 2020.
All rights reserved.
This podcast is provided forinformation purposes only.
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