Negotiating a Licensing Agreement Part 1

[@raquelandrea6529]

Invaluable info! Love you guys! Thanks so much!!

[@slingernoob356]

You guys are awesome. I love the enthusiasm.

[@inventRight]

Thanks!

[@getyourgameonvrutuber8657]

You guys are awesome I've watched almost all your videos you truly are very helpful in getting started.. You guys should write up a mock licensing contract so we can see as well as hear your knowledgeable company and staff.. When I figure out everything I'll be sharing all my knowledge as well... Keep up the good work!

[@coolboy60044]

Thank you SO MUCH guys! Thats some big stuff I have really wanted to see! I'm sure that's the same case for everyone else. I can't wait for part 2, keep it up!!

[@stephenkey3137]

Thank you!

[@kpope46]

Stephen Key Hello Mr. keys, I designed a product that i believe will change the way people sleep at night. This product will provide comfort and convenience for those relaxing for the night. How do start the buzz words for products?

[@carriegeis4979]

THANK YOU for addressing the Licensing/Contract segment of this process. It really is one of the hardest, most important and detailed points of inventing. I love your videos...SO informative and helpful. PLEASE do a number of segments on this topic. I have read your book, but the live version and discussion of these ever so important points is invaluable, and hopefully will help to keep me from making big, expensive mistakes.

[@stephenkey3137]

Thank you Carrie!

[@Irieonekool]

Great job loving it.

[@jeremy_317]

Great stuff as always guys! Getting some interest from cold calling and like these little videos that pack a punch of good info.

[@Leenatheo]

Thank you for all your videos! I am really curious how a 'term sheet' or licensing contract looks because you made it sound really interesting. Have you published an example or template that I can find and take a look at?

[@inventRight]

Hello Laa-Na! There isn't a specific format that you need in order to put together a term sheet. You can use bullet points to make the information easier to read, if you wish. As for what should be on the document, check out Stephen's article on how to put together the term sheet, before there is even a first draft of a licensing agreement: www.inc.com/stephen-key/before-you-move-to-a-licensing-contract-focus-on-a-term-sheet-first.html. Hope this helps!

[@Leenatheo]

Thank you very much! It is really helpful!

[@jonathanv3314]

Stephen! You mentioned that we also need professional help when we go into a Term Sheet. Who do we hire exactly? Thank you so much 😁🙏

[@inventRight]

Find out about our negotiations coaching: www.inventright.com

[@jonathanv3314]

@@inventRight 💯👍

[@kimberlyvillarreal4353]

Question, I have a novelty/design, patent pending, as well as the logo, trademark pending. When negotiating with leasor, do I and how do I negotiate the percentage of total royalties for the lease of both as a whole?

[@inventRight]

Not quite sure what you mean. If you're looking for more help, contact us here: inventright.com/contact-us-today.

[@TheAuthorsAssistant]

How much would you spend on a attorney at the end to cross the T's and dot the i's at the end of the contract with inventright ..... $5,000 ?? any kind of guess would help ! Thanks!!

[@MaryLynnLiQit]

Thank you for doing these guys!!!

[@kellylynnbrowne947]

Hey Andrew , thanks for this valuable info, I have a request. These informative videos are fantastic but the headphone mic is very harsh, scratchy in all video, sounds terrible. On the other side, he sounds so clear without headphones. It would make for a better listening experience. Thanks again!

[@inventRight]

Thank you for your feedback Kellylynn!

[@tellmesomething2go]

I keep giving you guys thumbs up. How many do you need? I called my first company today. They want to hear.

[@stephenkey3137]

+Arthur Bradley good job!

[@patrickmuller9424]

Thanks for your Video and for your great Book. You always talk about the Contracts and Deals, but how i figure out, what Idea is the Best? Do you only use the 4 questions (which you wrote in your book) on an Idea to see if the Idea is good? I have around 250 Ideas! and just don't know, which are the best Ideas to work on. An Answer would be a great Birthday Present (turning 16 today :) ). Unfortunally your Program is just too expensive for me. :(

[@stephenkey3137]

Thanks for watching. We will do a video on how to choose the best idea.

[@chrisfilippelli7119]

Can you license your idea to multiple companies?

[@munankendakwanzambi1553]

i just had my drawing converted to a cad file and my invention is in the welding industry how do i go about pitching my invention of the welding hood to them lincoln and miller are some of the biggest names i welding what should i do ive already have a provisional patent on it need some good advice

[@inventRight]

You've come to the right place! We have published many videos about this topic. In fact here's a playlist of 21 videos: kzbin.info/aero/PLG-tVkiG-bLFFBpQLmKv_bRVnpljL_mZA. We also write about how to get in to companies you want to license your ideas all the time, like this article: www.inc.com/stephen-key/how-to-get-in-to-any-company-to-pitch-your-new-product-idea-for-licensing-consid.html. If you're looking for more help, we run a one-on-one coaching program. Thanks for watching!

[@georgesaunders3532]

hi Stephen and Andrew. I have an idea which I have developed on paper. I am yet to take it to the next level of protection and therefore I have not approached anyone. naturally I like many others feel the idea is big and am worried about the next step and being robbed. in terms of patenting or licensing the idea I feel confident its original and functional enough to achieve said protection. but I am in the UK and want to know the cheapest yet more effective way to protect my idea to enable me to just talk to companies or even just advisors. cheers guys, great videos

[@stephenkey3137]

+George Saunders Very simple... Make sure you have them sign a NDA/ non-disclosure agreement.

[@socialuplifted8405]

Hi Stephen and Andrew, I love this video. Is there a format or a form that you could recommend for term sheets?

[@inventRight]

Thanks! The concept of a term sheet is more figurative than literal.

[@timsilver100]

I have an idea that has to do with driving and vehicles in general, how do I know if DOT or whatever government would even allow such a product to be sold in a country?

[@jamesgraham6796]

S.C.O. R.E is a good resource for knowledgeable individuals that can offer help... for free

[@luismount]

Thank you guys I was having this question naw at me for a few days now i was wondering if you guys spoke about this. Thank thank you both

[@inventRight]

You're welcome! Thanks for watching.

[@davidlynn9195]

Love you guys.

[@inventRight]

Thank you for watching!

[@elmerfox6872]

What percentage of royalties, should I ask for on a patented product that will retail for $100 wholesale $ 75 manufacture cost around $40

[@inventRight]

Royalties are typically between 3-5%. If you have IP, sales, etc. possibly higher.

[@elmerfox6872]

Thank you for your quick reply !! I am not charging a licensing fee, giving an exclusive right to manufacture sell and distribute. should they not cover the product warranty, liability ins and advertisement cost as well?,

[@elmerfox6872]

What is an IP ? International patent?

[@inventRight]

Intellectual property. Which includes patents, but also other forms of protection like trademarks, copyrights, etc.

[@elmerfox6872]

I have a utility Patent, do I need to have the others also, you can call me 6015401176

[@astraldesign316]

Hello Invent Right ! I have been listening to various of your videos as well as reading two of your books Stephen and i just had a question for you, I've heard you say on various outlets to be weary of who you submit your ideas to and I have been deliberating on whether or not I should submit my idea to this company. I discovered that they are accepting to open innovation via the invent right website and have tried various times to communicate with someone via telephone to no avail but i have noticed they have an idea submission option via their website but i am unsure if i agree with one of the terms .. " Despite receiving your product idea submission, COMPANY is still permitted to independently develop its own product(s) (or to have a third party independently develop product(s) for COMPANY) that compete with your product idea submission, even if COMPANY decides not to use your product idea submission." Is this common vernacular, or is it in essence leaving the door wide open for this company to steal my idea? while having my hands essentially tied if i was to pursue legal action seeing how i agreed to these term ? side note, This is an international company and I have filed a PPA that i am confident is a strong deterrent against workarounds. Sorry for this short story but this situation has been plaguing my thoughts and your insight would greatly be valued

[@inventRight]

+Astral Design Thank you for reading and watching! Contract language is really tricky. I suppose that's why we have attorneys. Upon reading that, my first instinct is that the company is merely protecting itself. (Say they have a product idea already in development quite like yours.) My advice to anyone, including you, who has a question like this is, please consult an attorney. - Stephen

[@inventRight]

+InventRightTV Also Googling the reputation of the company, of course.

[@astraldesign316]

Thank you very much for your rapid response Stephen. i will take your advice and do such. I also very much appreciate all the work that you and Andrew do !

[@stephenkey3137]

+Astral Design thank you.

[@vickiecorpuz7916]

Came up with another invention and found you today. Steve come see me in Oviedo Florida to show you all of my inventions. I’m 70 not getting any younger. I’m a Virgo and very creative. I trust in God and would love to trust in you. Your so cool looking too! ✌️❤️🎶

[@jaredsfacingforward]

Hey there, if I have an idea for a type of product and I am not sure where to start what should the first step I take be? (I am solely interested in licensing my product for a royalty and have never done this before). Should I, A: talk to a licensing/patent firm about my idea and trust them to do a patent search and find the right company for me to license my idea to. B: contact manufacturers about my idea before I bother with patent searches/filing for a provisional patent. (I'm worried if I contact a manufacturer via telephone or email my idea will not be protected and could potentially be stolen from me). PS: I have no prototype, nor do I have the means to acquire or create one. PPS. I am from Canada, I am not sure if the laws for such things are different in U.S.A (I am assuming that is where you are from) Thank you very much, I am greatly looking forward to a response.

[@jaredsfacingforward]

Jared Cipak To add to my inquiry I notice you touch a lot on not rushing to a license attorney before you've agreed on 4 major points of interest. Touching base on my first question I would like to know if you take any steps prior to contacting the manufacturer and/or company you wish to license to as far as protecting your idea. I have a hard time understanding that the very initial step after you've though of an idea is contacting a major company/corporation and freely speaking about your idea. Thank you again. I am hopeful that you will help clear these issues up for me.

[@stephenkey3137]

Jared Cipak Before contacting a company to license your idea, you should file a PPA (provisional patent application) to protect yourself. And you're right-talking about your idea over the phone is not a good idea. You should always create a paper trail. Email the company your sell sheet and let it do the talking for you. If you haven't read my book One Simple Idea, you might enjoy it! It details affordable prototyping techniques.

[@poesypoet]

I've been watching your video's thumbs up got a new sub currently researching kitchen gadget patents My question to you is when naming a product in the patent I see a lot of synonyms used as if to hide the actual purpose of the device. Do you think that this tactic is mainly used to hide the patent from "Patent trolls" ?

[@inventRight]

Not 100 percent sure what you mean, but no, it's doubtful that's the reason.

[@poesypoet]

What I meant was it seems that those that go through the trouble of getting a patent try to make the name of the patent so obscure as to make it really difficult for patent trolls (Lawyers) to find new patents that might infringe on existing patents

[@inventRight]

We'll put this question to patent attorney Damon Kali for comment.

[@poesypoet]

Thanks for that

[@AnnaMishel]

You guys look like you’re having a great time!

[@ponti5457]

Is their a way to contact you guys for a question about AFV stealing my rights to my video?

[@inventRight]

Not sure we'll be able to help you with that specifically, but you can call us at 1-800-701-7993 or set up an appointment here - we'd be happy to talk to you: www.inventright.com/contact

[@keithkt7257]

Hi Steven when is the new book I saw on your website coming out?

[@stephenkey3137]

In about two weeks. Thanks for asking.

[@jankel6383]

how much do you charge for your help on an invention?

[@inventRight]

Hi Janice. We can help you in a variety of ways, including our 6-month licensing bootcamp, which will have you contacting companies to get in by the time you graduate. For a full list of prices and services, please scroll through this page on our website: facebook.com/events/172089943279239/.

[@MikeSmith-dp7iz]

inventRightTV sheesh 6 months!!!

[@stockae74]

Andrew & Steven, Just for fun, let's assume that I have a revolutionary idea for a new motor vehicle engine that runs on air and I secure a provisional patent. If brought to fruition every new car sold will have an engine that runs on just the air we breathe. Obviously, this would be a major threat to big oil. I'm fat, broke and lazy, so I really don't plan to mess around with actually getting the full patent. Big oil wants me to keep my idea quiet too and is eager to pay me to just shut up and go away. I want big oil to buy me out for the rights so I can get paid ASAP and go hibernate on my own little island for the rest of my life. Question: How would you recommend marketing such provisional patent to get big oil's attention so they contact me to make a deal for hush money?I know this sounds crazy. But most ideas are usually thought of to be a little nuts at first. Thanks,Andrew

[@kikroks]

how do I protect myself from a big company stealing my idea even with a provisional patent if I cant afford attorneys to fight it?

[@inventRight]

Hi John. That's a great question that demands a thoughtful response. Stephen Key has written a lot about this topic for magazines and in his books. Here are some articles to get you started: www.entrepreneur.com/article/242069, www.inc.com/stephen-key/how-to-license-an-idea-to-a-big-company.html, and www.inc.com/stephen-key/5-ways-to-motivate-people-to-work-for-and-not-around-you.html. Companies are more likely to work around you than to steal an idea outright... you can outsmart them if you become the expert of your idea. Thanks for watching!

[@bradley5819]

Thumbs up from New Zealand

[@pdub2762]

Ty sirs💪

[@ImbentongBentongTrimond]

ooh I love this ~!

[@inventRight]

Thank you

[@williamcolbery8312]

I'm late to the party but I'm really learning alot !

[@stockae74]

Sorry, I meant "Stephen."

[@vicheakeng4884]

0:28

[@inventRight]

Thanks for watching. - Andrew Krauss, inventRight Co-Founder ( Call, email, book an appointment or request more info about how we can help by visiting us here. inventright.com/contact/ )

[@joshuashindler4680]

Informative

[@nighthiker8872]

No hurry,give and take!

[@donnabeattiedreamerbydesign]

❤️

[@ladystylist1]

I'm Back😊

[@kimberlyvillarreal4353]

P.S. I have a prweb page. Google "2Cute Ponytailz" and scroll down to World Patent Marketing introduces 2Cute Ponytailz to see what I'm working with.

[@MikeSmith-dp7iz]

let's see some graphics. PPT, slides Something. let's see your points up on the screen.

[@inventRight]

Hi Mike! If you're interested in watching some presentations, please check out the webinars we make available to the public: inventright.com/bootcamp-program#success. FYI, we teach a webinar to our students every Thursday. Thanks for watching and please check out our licensing library for more free resources: inventright.com/help/licensing-library.

[@JorgeRamos-km9ji]

Bathing is free in this life you remember

[@marke.8334]

If you all haven't seen a documentary called... It's worse than you think.. by Revelations of Jesus Christ ministries... I suggest you do...All praise and glory to the most high Jesus Christ

[@kevinanthonywhitter2293]

get to the point please