TECHNOLOGY LICENSING LAW

An innovative law firm that tackles legal aspects of technology and internet businesses to optimize their commercial potential and profitability, while managing a highly demanding legal environment.

Contact Neufeld Legal PC at 403-400-4092 or Chris@NeufeldLegal.com

Licensing and distribution allows for a technology owner to grant the right or license to others to use their technology, thereby creating a mutually beneficial business relationship. This grant of the technology license does not constitute an outright assignment of the technology, but is only a limited lease of the technology that is strictly controlled by contract. Ultimate ownership of the intellectual property rights remains with the technology owner, with all rights reverting back to the owner at the end of the contract.

CERTAIN RISKS *

Reverse Engineering: Disassembling, decompiling and decrypting technology with the express purpose of stealing one’s trade secrets is a serious crime. As such, it is important that clear controls are set out at the outset to restrain such activities and provide you with the means to detect and repel efforts to steal your intellectual property.

Third Party Rights: Technology is rarely an individual creation. Innovations and concepts that form part of the licensed technology may be rightfully owned by a third party. How that ownership interest is dealt with from both a legal and financial perspective can be extremely tedious and costly. Well drafted licensing and distribution agreements can deal with each parties’ responsibility in dealing with these highly volatile legal situations.

Improper Distribution: The success of any licensing or distributorship arrangement lies in maintaining central control over the process. If there is an inconsistent distribution strategy, the full value of the technology that is being marketed will not be realized. Only by enforcing controls is it possible to optimize profits and facilitate the long-term success of the technology venture.

Unprecise Practices: The sales process needs to insure uniformity in pricing and a high standard of customer approval (and where dictated, customer support). This cannot be left at the discretion of your distributors or licensing partners, but requires a degree of oversight that is contractually enforceable.

SALES AGREEMENTS

Sales agreements facilitate how your product is purchased by both resellers and consumers. What is being sold has considerable impact on the form of agreement, whether its an outright sale or restrictions are imposed; whether maintenance and/or service options are made available; what controls are imposed upon its use and alteration; etc. Sales agreements therefore need to be heavily tailored to optimize the profit potential from the sale.

CERTAIN RISKS *

Generic Forms: Far too many companies rely upon generic sales forms that are subject to unanticipated legal liability and undercut their profit margins. If you want to move ahead of your competition, you cannot rely upon "one size fits all" agreements and instead you need to step out of shadows that has trapped so many technology wanna-bees.

Pricing Structure: Technology need not be a flat price structure when there are numerous variables in play. Instead many products (especially those that integrate service, maintenance and other updates and options), should be designed to obtain those additional payments that your users/buyers will grudgingly (but acceptingly) pay, yet you may have otherwise freely given away (people appreciate paying for quality, so let them pay)..

We understand how computer algoritms and technological processes intersect with the law and commercial aspects of the Internet, and working with corporate business officers, tech entrepreneurs and IT departments as they strive to realize upon the financial potential of the Net. For more information as to how our law firm can apply our knowledge of the law, technology and the Internet to your business pursuits, contact us via email at Chris@NeufeldLegal.com or 403-400-4092 / 905-616-8864.

* The preceding lists of risks are not meant to be exhaustive, to the contrary, they are meant to illustrate a few of the many dangers that can arise when a business fails to retain the legal services of an appropriate lawyer.