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Steps to Writing a Licensing Proposal

11/8/2017

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Kevin Johnston reports:

"Write a license proposal when you want to license your intellectual property for someone else to use. This document lays out the terms and conditions for use of your company name, copyright, logo or other intellectual property for someone else to use on a product or in promoting a service. The proposal must contain certain elements to avoid confusion, misunderstandings and even lawsuits further down the road. Don't skip any steps, and make sure all of your concerns are included in writing. Don't count on any verbal agreements. Write the names of each company in the first paragraph. Your company name goes first, as the one offering the proposal to the second company, which you should call the client. Describe the product...Include a detailed description of the product, including any specifications you demand in order to have your name, logo or other company information represented properly. Write an estimated date for production to begin...You should indicate that after the production commencement date, if no products have been produced, you have the right to license your company information to competing products. Designate the minimum number and maximum number of products that will bear your name or use your copyright. You may want to set a threshold above which you will be paid more. If the product is a hit, you should receive more money. Explain what you will provide under the agreement...Explain what rights you demand if the proposal is accepted...List all obligations the client will have under the licensing agreement...Close the proposal by thanking the client for his time and consideration. Date and sign it."
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