What are the risks associated with licensing intellectual property?

What are the risks associated with licensing intellectual property?

Licensing intellectual property can lead to several risks, including loss of control over the IP, potential infringement issues, and financial instability if the licensee fails to meet obligations.

Can you elaborate on the loss of control aspect?

Certainly! When you license your IP, you grant rights to another party, which means you may have limited say in how it's used or marketed. This can lead to misalignment with your brand values.

What are some common infringement issues that can arise?

Common infringement issues include unauthorized use of the IP, failure to pay royalties, or the licensee creating derivative works without permission, which can lead to legal disputes.

How can I mitigate these risks?

You can mitigate risks by drafting clear licensing agreements, conducting due diligence on potential licensees, and including clauses that protect your interests.