Licensing/Joint Ventures

Are you an Investor looking for promising licensing or joint venture opportunities?

Licensing is a contractual agreement whereby the licensor, who is the exclusive owner of an intellectual property right (IPR), grants the licensee the permission to utilize the same, in return for a pre-determined fee. The IPR can be with respect to patents, trademarks, copyrights, designs, etc. It is one of the most significant means of technology transfer between firms. The licensor normally receives a percentage of revenue from the sale of products or services.

Similarly, in case of joint ventures, two or more businesses join hands to pool their resources, in order to attain a common objective. The partners share all the risks and rewards. There may be several reasons to enter into a joint venture, such as expansion of business in new geographic areas, access to distribution channels, increased production capacity, access to technology, pooling of technical expertise, R&D facilities, etc.

In both these cases, the objective of the investor is to find the most appropriate partner, that best meets his requirements and is consistent with his goals and strategies. Both these routes provide instant access to existing production, distribution or marketing systems that the other company might have built over decades. Before entering into any such contract, there are several factors which must be considered - the strategic objectives of the other company, the contribution made by the other party, applicable terms and conditions, dispute resolution measures, etc.

Challenges

  • Finding joint venture partners or licensors, who can complement your business strategy and provide necessary resources, expertise, market, etc.
  • Negotiating fair and justifiable terms and conditions, which are in line with your expectations
  • Analyzing the feasibility of the agreement in terms of benefits from synergies of partnering together. Necessary compliance requirements must also be considered.

Solutions

  • Providing a customized list of partners or licensors, who can meet the desired objectives
  • Help in negotiating with the prospective partners, to ensure that the terms and conditions are fair and justifiable
  • Conducting in-depth analysis and preparation of forecasted returns that will help determine feasibility of the proposition

Benefits

  • Helps in shortlisting prospective partners by providing access to a large membership base consisting of successful organizations across all industry types
  • Professional guidance increases the chances of success of the licensing arrangement or the joint venture, by addressing all key issues
  • Unbiased and independent advisory ensures complete transparency in deal making and negotiations, thus reducing chances of conflicts in deal making

Sign up as a Licensee or JV Partner and learn more about projects that are best suited for your investment profile.