License your product or service
Licensing can be a quick and cost effective way to get your product or service into a new market.
The cost of making, marketing and selling the product is paid by the licensee. In return they don’t have to spend time and money creating, designing and testing an idea.
Licensing can also be used to make the most of your intellectual property (IP).
Licensing may not be an option in some markets. Research your market to find the best way to sell your product or service.
Set up a licensing agreement
There is a risk that your idea or IP could be stolen or the brand devalued by a product or service being delivered to a lower standard. A good licensing agreement should address these issues.
You’ll need legal advice to set up a licensing agreement to protect your IP. This can be costly but should be a one-off setup cost.
The licensing agreement should clearly state:
- the type of licence granted (exclusive, non-exclusive or sole)
- any limits to useage (sector or geographic)
- any support that you’ll provide
- if and when you can audit the licensee to check sales
- the length of the licence
- what happens when the licence ends