Strategic Licensing Achieving Maximum Leverage

Strategic Licensing Achieving Maximum Leverage • Define Clear Grants • Establish Consistent Business Practices • Founded on Ethical Principles • Builds Relationships • Achieves Maximum Leverage

Strategic Licensing Achieving Maximum Leverage • Define Clear Grants • View the License as an extension of the product • A grant is a product feature • Each feature has a value • Know the client’s objectives • Translate objectives into grants

Strategic Licensing Achieving Maximum Leverage • Define Clear Grants • Define the client • Broadly/Narrowly? • Define the product • Specificity is critical! • Define Access, Use and Benefit • Who can access, use & benefit?

Strategic Licensing Achieving Maximum Leverage • Define Clear Grants • Define the market • Segmentation • Geographic • Demographic • Value-based • What’s the term? • Active period • Renewal

Strategic Licensing Achieving Maximum Leverage • Define Clear Grants • Handling Mod’s & Enhancements? • Who makes? • Who owns? • Exclusivity • Good or bad? • Deep pockets? • With fences?

Strategic Licensing Achieving Maximum Leverage • Define Clear Grants • Payment • Who pays? • How will they pay? • When will they pay? • Audits? • Price increases • Protection • Sharing

Strategic Licensing Achieving Maximum Leverage • Establish Consistent Business Practices • Avoid Gunslingers • Avoid the Moving Financial Model • Avoid Client Confusion • Don’t sell futures!

Strategic Licensing Achieving Maximum Leverage • Establish Consistent Business Practices • Equal Treatment • Product Presentation • Pricing Guidelines • Licensing Guidelines • Delivery Expectations • Industry Practices

Strategic Licensing Achieving Maximum Leverage • Establish Consistent Business Practices • Client Lifetime Value equals: Your best prospect should be your current client

Strategic Licensing Achieving Maximum Leverage • Establish Consistent Business Practices • Rules of Revenue Recognition Differ • License fee • Royalty fee • Enhancement fee • Maintenance fee • Consulting fee

Strategic Licensing Achieving Maximum Leverage • Founded on Ethical Principles • Branding Begins Here • Employee First • Be the de facto standard for quality • Educate the customer

Strategic Licensing Achieving Maximum Leverage • Builds Relationships • Establish Trust & Credibility • People buy from People • Beat Expectations • Avoid Surprises

Strategic Licensing Achieving Maximum Leverage • Builds Relationships • People Change • Get it in Writing • Markets Change • Miniaturization • Generic • The Law • China

Strategic Licensing Achieving Maximum Leverage • Achieves Mutual Benefit • Clear Understanding of Agreement • Agreement Matches Objectives • Open to Evolution • Excellent Value Proposition

Exit Strategies (Parting Friends) • Mutual exit clause • Time based reevaluation and renewal • Minimum financial milestones • Goal based technology development

Strategic Licensing Achieving Maximum Leverage