THE PROCESS OF NEGOTIATING

A LICENSE AGREEMENT

Having gone through a

preliminary analysis of its business

what would the other party be

expecting to achieve
The
Preparatio
n Phase
The lead negotiator would
preferably be one who
understands the overall business
strategy.

Prepare a summary of the key

commercial issues to be covered in the
license agreement and the position of the
party on each such issue

promoting the merits and the

opportunity offered by its technology

The
Discussion
Phase

reviewing documentation and

information under a confidentiality
agreement.

the parties are exploring the possible

relationship and the principal
commercial terms.
 the parties are exploring the possible
relationship and the principal
commercial terms.

The Key questions are being asked, assumptions t

Proposing strategic objectives established and bounda
and identified
Bargaining
Phases

including, for example, license exclusiv

license/payment amounts and timing
imagination can create additional vari
managed so a
ng gone through a
y analysis of its business

ld the other party be

cting to achieve

ad negotiator would
erably be one who
ds the overall business
strategy.

are a summary of the key

ial issues to be covered in the
eement and the position of the
arty on each such issue

oting the merits and the

ty offered by its technology

wing documentation and

tion under a confidentiality
agreement.

are exploring the possible

nship and the principal
ommercial terms.
 are exploring the possible
nship and the principal
ommercial terms.

ns are being asked, assumptions tested,

bjectives established and boundaries
identified

g, for example, license exclusivity/geographical territories/scope of

/payment amounts and timing/royalties are variables, and a little
ation can create additional variables, all of which can be creatively
managed so as to arrive