Based in Minneapolis, Minnesota, Enhance Product Development provides inventors with an assortment of services for product design, development, and commercialization with a focus on professionalism and integrity. Enhance Product Development also offers guidance in understanding the ins and outs of product licensing, which enables a third party to manufacture and/or distribute one’s invention. The following list covers tips and considerations for licensing an original product.
1. Become familiar with licensing contracts. Make sure you develop a comprehensive understanding of the components within a licensing contract, including information about the parties as well as the meaning of whereas clauses, definitions, and grant sections, among others. In addition to grasping these components, you will need to ensure you understand the terms and conditions outlined in the contract before finalizing it.
2. Know the market. Learn everything possible about the market before seeking a licensing agreement, including information about the competition, the potential market size, and the market’s specific needs and expectations. You may also want to research niche markets if your product appeals to a specific area or sub-discipline within a given market.
3. Keep your expectations realistic. Remember that a licensing deal does not guarantee success or immediate results. Refrain from overestimating the power of the brand that acquired the license. Instead, establish realistic expectations based on your knowledge of the market, the licensing brand, and economic factors.
4. Learn selling strategies. Presentation is an important part of seeking a license, and your efficiency in presenting your product’s information can play a major role in your success or failure. Learn effective strategies – both in written and slide format – for presenting and selling your product. Information to incorporate includes market research data, product specifications, competitive analyses, and visuals like diagrams and drawings.
5. Stay abreast of industry news. Do not become lax in research at any point during the licensing process. Research constantly to stay ahead of industry developments and take advantages of opportunities that may present themselves.