License Your Invention: Sell Your Idea and Protect Your Rights with a Solid Contract "With CD" (Profit from Your Idea: How to Make Smart Licensing Deals)

Like most inventors, you dream of striking it rich – finding a company you can trust, hashing out a fair licensing deal, watching your idea hit the marketplace and then raking in the profits. But where do you find the right company? And how do you draft an agreement that will protect your interests? License Your Invention provides both the practical marketing advice and the legal licensing language you need to turn your invention into a moneymaker. Step by step, this book explains the key elements in a licensing agreement, from advances and royalties to the length of an agreement. It also explains complex concepts such as warranties, indemnity and reservation of rights – all in plain English. Learn how to: *understand the licensing process *determine your ownership rights *work with agents effectively *find potential licensors *show your invention while protecting your work *negotiate a fair licensing deal *draft your own comprehensive licensing agreement *understand, review and negotiate changes The completely updated 4th edition provides a new section on international licensing and expanded information on invention ownership rights for university and government employees. Table of Contents......Page 10 I How to Use This Book......Page 16 1 Gearing Up to License Your Invention......Page 18 A. Licenses......Page 20 C. The Licensing Process......Page 23 D. Avoiding Conflicts Among Multiple Agreements......Page 28 E. Challenges to Your Ownership......Page 31 G. Keeping Your Records......Page 32 H. No False Hopes! Reviewing Your Invention’s Commercial Potential......Page 33 2 Intellectual Property Protection......Page 38 A. General Rules for Legal Protection of Inventions......Page 40 B. Utility Patents......Page 41 C. Trade Secrets......Page 48 D. Trademarks......Page 52 E. Design Patents......Page 53 F. Copyright Law......Page 54 G. Sorting Out Nonfunctional Features: Design Patents, Product Configurations, & Copyright......Page 55 3 Ownership Issues for Inventor Employees......Page 60 B. Employer/Employee: Patent and Trade Secret Ownership......Page 61 C. Inventions Covered by Copyright......Page 65 D. Special Employment Situations......Page 66 E. Working Out Ownership Issues With Your Employer......Page 69 4 Joint Ownership of Your Invention......Page 72 A. Joint Ownership......Page 73 C. Transferring Ownership of Your Invention to Your Business......Page 79 5 Licensing Agents and Representatives......Page 90 A. Agents......Page 91 B. Completing the Agent Agreement......Page 93 C. Attorneys as Agents......Page 97 D. Invention Marketing Scams......Page 99 6 Soliciting Potential Licensees......Page 102 B. How to Find Potential Licensees......Page 104 C. How to Overcome a Licensee’s Bias Against Submissions......Page 107 D. What’s the Best Way to Solicit a Potential Licensee?......Page 108 E. Product Presentations......Page 111 F. Should You Solicit Foreign Licencees?......Page 113 7 Protecting Confidential Information......Page 118 A. Confidential Information and Nondisclosure Agreements......Page 119 B. Proceeding Without an Agreement......Page 126 C. Waiver Agreements......Page 127 D. When You Have Sufficient Bargaining Power......Page 128 F. Disclosing to an Attorney......Page 130 8 The Key Elements of Your Agreement......Page 132 A. From Handshake to License......Page 133 B. Identifying the Parties......Page 134 C. Describing Your Invention and the Licensed Products......Page 135 D. Specifying Which Rights Are Granted......Page 138 E. Defining the Territory......Page 141 F. Setting the Length (Term) of the Agreement......Page 143 9 Money: It Matters......Page 150 A. Some Basic Royalty Definitions......Page 152 B. Ways to Get Paid......Page 153 C. The Mysteries of Net Sales and Deductions......Page 156 D. How Much Do You Get?......Page 158 E. Royalty Provisions......Page 160 10 Negotiating Your Agreement......Page 166 A. What, Me Negotiate?......Page 167 B. Documenting the Important Contract Elements......Page 168 C. Letter of Intent......Page 171 D. Option Agreements......Page 173 E. What If the Licensee Wants to Proceed Without a Written License Agreement?......Page 178 11 Sample Agreement......Page 182 A. License Agreement......Page 184 B. Optional License Agreement Provisions......Page 208 C. Modifying the Sample Agreement for Your Needs......Page 212 12 Warranties, Indemnification, and Proprietary Rights Provisions......Page 214 A. Promises, Promises ... Warranties, Representations, and Covenants......Page 215 B. Indemnity—The “Hold Harmless” Provision......Page 217 C. Licensee Warranties and Indemnity......Page 222 D. Proprietary Rights......Page 223 F. Samples and Quality Control......Page 225 G. Insurance......Page 226 13 Termination and Post-Termination......Page 228 B. Termination Based Upon a Fixed Term......Page 229 D. Termination Based on Contract Problems......Page 230 F. Post-Termination: What Happens Afterwards?......Page 232 G. Survival of the Fittest......Page 233 14 Boilerplate and Standard Provisions......Page 234 A. Paying the Lawyer’s Bills......Page 236 B. Dispute Resolution......Page 237 D. Jurisdiction......Page 239 E. Waiver......Page 240 H. Attachments and Exhibits......Page 241 K. Assignments......Page 242 M. Headings......Page 243 N. Establishing Escrow Accounts......Page 244 15 Service Provisions......Page 248 A. Service Provisions vs. Separate Service Agreements......Page 249 B. Training the Licensee’s Personnel......Page 250 D. Technical Support for the Licensee or for End Users......Page 251 E. Improving, Modifying, and Delivering the Invention......Page 252 16 Handling the Licensee’s Agreement......Page 256 A. Dealing With Suggested Changes......Page 257 B. Evaluating an Agreement Presented to You......Page 258 C. Evaluating the Provisions and Suggesting Changes......Page 259 17 After You’ve Signed the Agreement......Page 270 A. Create Your Contract Calendar......Page 271 B. Dealing With Royalty Statements......Page 273 C. Resolving Licensing Disputes......Page 275 D. Avoiding Patent Misuse and Illegal Agreements......Page 276 E. The Taxman Cometh......Page 278 F. Quality Control......Page 279 18 Help Beyond This Book......Page 280 A. Licensing and Intellectual Property Resources......Page 281 B. Working With an Attorney......Page 288 Appendix A How to Use the CD-ROM......Page 292 Appendix B Forms......Page 296 Agreement Worksheet......Page 298 Letter Confirming Employee’s Ownership of Intellectual Property Rights......Page 300 Joint Ownership Agreement......Page 302 Assignment of Rights: Patent......Page 306 Assignment of Rights: Patent Application......Page 308 Assignment of Rights: No Patent Issued or Application Filed......Page 310 Agent Letter Agreement......Page 312 One-Way Nondisclosure Agreement......Page 316 Mutual Nondisclosure Agreement......Page 318 Contract Worksheet......Page 320 Option Agreement......Page 324 License Agreement......Page 328 Escrow Agreement......Page 342 Checklist for Reviewing a License Agreement......Page 346 License Dates......Page 348 Index......Page 350 Related Products......Page 372 About the Author:

Rich Stim is a graduate of the University of San Francisco School of Law where he studied intellectual property law. He practices law in San Francisco, specializing in intellectual property and licensing and is an adjunct professor at San Francisco State University. He is the author of Music Law: How to Run Your Band's Business, License Your Invention and Getting Permission: How to License and Clear Copyrighted Materials Online & Off (all published by Nolo); as well as Intellectual Property: Patents, Trademarks & Copyrights (West).