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Sample Licensing Terms Sheet

inventoraj's Avatar

Hi all,

I have a company interested in licensing a product that I invented. They said they want an exclusive and asked me to send them my basic licensing terms. 

Does anyone have a standard licensing terms sheet that they use for licensing their products? I found some licensing agreement forms on the internet but not sure which one to use.

Thank you,

AJ  

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bsumlin's Avatar

Have you reached out to ED about licensing your product? Do you have a patent? If I am correct I believe ED can assist you with this.

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smallprojects's Avatargold

Edison Nation would handle this type of scenario if you are signed on with them. 

If you are making the attempt to license your product yourself, they are referring to basically a short 1-2 page document that highlights the basics of a potential licensing agreement. In this document would include the basic pillars of the deal such as:

They get exclusive or non-exclusive right to manufacture the product.

The royalty rate at which you are paid. Most everywhere on the internet will tell you approx. 3% of the wholesale price. This is not true for all industries and products though. For example, a new high-tech patent will likely command more %.

Approx length of the contract.

Minimum guarantees of production. 

Possible royalty advancement fees.

Etc.

This is just a basic run-down of what is to be expected without all the other lengthy mumbo-jumbo legal stuff and other smaller points of the contract. This is just a document which has no legal meaning is non-binding and just gives both parties an idea if they can work together. 

Don't rely solely on my advice though, as I am just some guy on the internet :) do your own question asking and research. If all fails just call them up on the phone and chat with them about what they are thinking. 

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magurn's Avataren_staff_badge

Hi AJ!

Following Chase's point, if you're interested in submitting the concept to Edison Nation, our suggestion would be to review our standard terms and conditions to see if we're a fit for you. You can find these as well as more information on our process on the Help page.

Best of luck!

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