The most conventional model for commercialising intellectual property is licensing or cross-licensing. We have experience with all of the critical issues, including:
- Appropriate licensed fields, performance obligations, bases for calculating royalties, industry-typical and product specific royalty rates;
- Transfer pricing;
- Provisions addressing compounding royalties (anti-stacking);
- Appropriate alternative dispute resolution mechanisms; and
- Steps to mitigate against the insolvency of the licensor.