• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Trading Life for a Weekend?
    Build a Business, Build a Life.
    Unleash the Dream.

    Become an UNSCRIPTED™Entrepreneur.

    UNSCRIPTED™ Entrepreneurship is an entrepreneurial business strategy that unleashes dreams, frees time, and explodes your incomes—but more importantly, it changes your life forever. Make no mistake; this isn’t something you “try”— this is something you live.

    FREE Download (Unscripted) FREE Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

GOLD The Licensing Game

Discussion in 'Product Creation, Inventing, Importing, Sourcing' started by Vigilante, Jun 22, 2012.

FORUM SEARCH


Need answers about entrepreneurship? Search FIRST! More than likely your entrepreneurial topic has already been discussed.
Powered by Google Site Search.
  1. Rearden
    Offline

    Rearden New Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    6
    Likes Received:
    4
    Joined:
    Aug 24, 2017
    Gender:
    Male
    Location:
    Michigan
    Rep Bank:
    $31
    Awesome Thread! Thank you @Vigilante
    I have licensed some of my own inventions and I was looking at selling the rights to the IP and the license. I have looked into the agreement and it allows this. Have you heard of any private equity firms or other entity buying out deals? And I am looking at doing this in the future so I am trying to make this opportunity as appealing as possible to the buyer. Do you know what they would be looking for?
     
  2. ThirtyOne
    Offline

    ThirtyOne Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

    Messages:
    103
    Likes Received:
    85
    Joined:
    Jul 18, 2017
    Gender:
    Male
    Location:
    Los Angeles
    Rep Bank:
    $170
    @Vigilante this thread has been eye-opening and inspiring. Thank you.

    Will I get weaseled out of a deal if I want to connect a big brand in a specific category to a big manufacturer in another category? The only value I can add is preparing the details of the deal for them (cost to manu, pricing, packaging, etc) and submitting my own visual designs for the product. I have no IP claims here at all.
     
  3. Rearden
    Offline

    Rearden New Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    6
    Likes Received:
    4
    Joined:
    Aug 24, 2017
    Gender:
    Male
    Location:
    Michigan
    Rep Bank:
    $31


    So it depends on what you are pitching, if you are just pitching a connection, then it might be tough to protect…I don’t think any licensing deal is impossible. A lot of getting a deal is how you pitch it. So I guess can you give some more details on what you are bringing to the table.

    If you are submitting visual designs of a product that means to me that on some level it's different than other products on the market and that’s VALUE. I have licensed 2 products that were not patentable, but the company saw value in what I was bringing them so they licensed them.
     
    ThirtyOne likes this.
  4. ThirtyOne
    Offline

    ThirtyOne Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

    Messages:
    103
    Likes Received:
    85
    Joined:
    Jul 18, 2017
    Gender:
    Male
    Location:
    Los Angeles
    Rep Bank:
    $170
    first off, congrats! any details you can share?

    For this idea, I think you are right--submitting original visual designs is the way to go.
     
  5. garyjsmith
    Offline

    garyjsmith Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    169
    Likes Received:
    274
    Joined:
    Jun 28, 2017
    Gender:
    Male
    Location:
    Northern VA
    Rep Bank:
    $929
    Did you [or your friend] draft that idea to make the Tony Stewart or did NASCAR decide to pursue? If the company decided to build a spin-off or addition to the original idea, do you receive royalties at the same rate, are terms renegotiated? Or do you just get cut out of the deal? More questions to come :) (still reading)
     
  6. Vigilante
    Offline

    Vigilante Legendary Contributor Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    8,795
    Likes Received:
    44,144
    Joined:
    Oct 31, 2011
    Gender:
    Male
    Location:
    Gulf Coast
    Rep Bank:
    $130,318
    We did it.

    What you will find about licensors (like NASCAR) is they are not manufacturers. These deals move pretty quickly. The last thing NASCAR is going to do is shop around for a second, similar agreement on a comparable product with a separate manufacturer. Licensors are not interested in the pain in the ass factor. All they want is a check.

    We don't do deals that have potential for us to get cut out. We're the cutters, not the cutt-ees.
     
    BrooklynHustle and garyjsmith like this.
  7. BrooklynHustle
    Offline

    BrooklynHustle Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    230
    Likes Received:
    271
    Joined:
    Apr 3, 2014
    Gender:
    Male
    Location:
    DMV
    Rep Bank:
    $1,547
    Fucking brilliant!
     
  8. BrooklynHustle
    Offline

    BrooklynHustle Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    230
    Likes Received:
    271
    Joined:
    Apr 3, 2014
    Gender:
    Male
    Location:
    DMV
    Rep Bank:
    $1,547
    I saw this done in the Waze navigation app with a few different personalities, including Colonel Sanders :rofl:
     
    topherea likes this.
  9. garyjsmith
    Offline

    garyjsmith Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    169
    Likes Received:
    274
    Joined:
    Jun 28, 2017
    Gender:
    Male
    Location:
    Northern VA
    Rep Bank:
    $929
    I said I'd have more questions. This one is about order.

    Let's say you had a idea that was not in production -- just a concept -- and you wanted to include (make money for) NASCAR and Dale Jr. Would you present NASCAR with a prototype or sell sheet and let their organization figure out how to manufacture the item, or would you first figure out how the item would be produced before including the celebrity? If the latter, would that require licensing to a company who could produce the product and somehow tying in the celebrity?

    Edit: I feel like in the second scenario, the licensing company [of the product] could say "nah, we aren't interested in working with that celebrity. We'll be marketing/developing the product how we see fit."
     
  10. Rearden
    Offline

    Rearden New Contributor Read Millionaire Fastlane FASTLANE INSIDER

    Messages:
    6
    Likes Received:
    4
    Joined:
    Aug 24, 2017
    Gender:
    Male
    Location:
    Michigan
    Rep Bank:
    $31
    Hi Jakinaka

    Of course and anything, I can do to help.
    I licensed 2 of my products in short:
    I researched the market to make sure there wasn’t anything else out there like my product and inevitable there was but I was doing it in a better way. So I developed a prototype and shot a quick 60 sec video of the demonstration. Then filed a PPA (provisional patent application) on my own (couldn’t afford an attorney at the time). Then got on the phone and started calling. One of the products I called 80 or so companies and got 79 No’s. The other was a shorter list but a longer period of time. Once I found the company that wanted it and had the resources to execute we put together a deal. Now I have royalties coming in every month J


    So that’s the broad over view and it sounds like roses but here is some of the truth behind it and following in @mjdemarco foot steps of telling the real story. It took me 9 years of work to get to the point where royalties can pay the mortgage (I was a slow learner and was not the best at taking action to start). The time when MJ talks about the echo period of darkness that was 3 years for me before I got feedback. So know in some cases licensing can be a long-term play and even though royalties are cool, you loose control of the income and now I have no idea if they are going to pull my product off the shelf or put more promotion dollars into another product and my sales are going to tail off. So when you are looking to jump into the invention licensing game know it can take a lot of time to start producing income and you loose your C ( for the most part).
     
    ThirtyOne likes this.
  11. Vigilante
    Offline

    Vigilante Legendary Contributor Staff Member Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    8,795
    Likes Received:
    44,144
    Joined:
    Oct 31, 2011
    Gender:
    Male
    Location:
    Gulf Coast
    Rep Bank:
    $130,318
    In all of the deals I have done, I have married an existing product I had control of to a brand or celebrity that didn't exist in that space. So, I am not the best one to answer your specific scenario, but I feel that Steven Key did a good job of that in One Simple Idea.
     
    Rearden and garyjsmith like this.
  12. ThirtyOne
    Offline

    ThirtyOne Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

    Messages:
    103
    Likes Received:
    85
    Joined:
    Jul 18, 2017
    Gender:
    Male
    Location:
    Los Angeles
    Rep Bank:
    $170
    Thanks for the detailed reply. So it sounds like your two patents were not design patents, but utility patents, since that's the only one you can file a PPA for.

    My specific idea right now is opening a new category of print art onto a current product. So, I couldn't even file a design patent on it, since it's just surface art. I do have offensive rights to the art under copyright law, but copyrights are so specific that they can be designed around and cut me out. It sounds like my current project needs to be more protectable or I'm outta luck.

    However, your reply was still very helpful and informative. Thank you for sharing your experience and giving me a healthy dose of reality. Licensing is a grind!
     
  13. ThirtyOne
    Offline

    ThirtyOne Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

    Messages:
    103
    Likes Received:
    85
    Joined:
    Jul 18, 2017
    Gender:
    Male
    Location:
    Los Angeles
    Rep Bank:
    $170
    Impressive that there's so much opportunity there. Super cool.