You should have rough idea of how you would answer the following questions:
- What type of arrangement are you looking for? Are you looking to license world wide, or
by country/region? Will your license be exclusive, or non-exclusive? (are you looking for
a single "partner" or many?).
- What do you want to gain?
- What kind of partner do you want? Should your partner be prepared to take an active role
in the development of your technology? Do you need a partner to access markets as well as
develop the technology?
- What are the general terms that you would find acceptable for licensing?
- Why are you licensing rather than developing the technology?
- Do you need up front cash, or would higher longer term royalties be your objective,
etc.?
Step II: If you don’t feel you know enough to
prepare the support materials required in step 1, it is worth the money to find a business
development professional who can help you information necessary for planning your strategy
to win a partner. You will spend approximately $20,000 to obtain a US patent and up to
$100,000 to obtain full rights world wide. Without strong marketing support you may
never realize a return on your investment or you may not value your technology properly
and thus undersell its potential.
A business development professional can also assist you in building a compelling story
that will induce a partner want to work with you.
Step III: Based on your Strategy you should identify a list of target
partners- corporations and funding agencies. Visit the BioTactics Networking Page for
Develop an introductory letter that describes your technology and the key
highlights compared to the competition as you understand them. Have back-up materials
ready send out if someone expresses interest.
One option is to hire a "finder" or a
person who specializes in "finding" money (such as for start ups) or strategic
partners (to license or fund technology development.) The best "finders" are
business development people who can also help you not only find the money, but develop
your strategy as well as structure your agreement.
Fees are generally an hourly rate plus a percentage of the
money raised. (Depending on the amount of capital that must be raised). My experience has
been (and most tech transfer professionals would concur) that most business deals occur
through networking, i.e. someone "knows someone". Companies get hundreds of
technologies and business proposals sent to them daily. The best way to have your
technology appear ahead of the pack is via a contact. An experienced finder often
has the contacts you need to get funding or make a "deal" with a partner.
Step IV: Your best protection is to have
any agreement outlined in a legally binding written contract. Have all agreements
reviewed by an attorney prior to signing. Even with a written contract it is a good
idea to select partners with whom you have a good working relationship. All
businesses have legal agreements; however, it is a very expensive proposition to legally
enforce an agreement with a partner who decides not to meet their end of the bargain.
A strong working relationship is essential for avoiding unnecessary legal
battles. §
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