Sara Ludlam, Intellectual Property Solicitor “From garden shed to shop shelf:product development agreements”
We welcomed back Sara, who talked to us last year “Making money from your IP” Licensing is one of the most common ways of making money from your Intellectual Property 18th March 2009 http://leedsinventorsgroup.blogspot.com/2009/04/leeds-inventors-group-sara-ludlam-18309.ht
This time Sara talked to us about product development agreements. She advises clients about product development agreements which should above all offer value for money.
There a several things to consider and understand with product development agreements
-What do you want from your supplier? Services to be provided?what services are you paying for?e.g.market research,prototype manufacture,industry standards testing,packaging design,marketing,manufacturing services-Do not pay all the money up front
-Conduct issues,your product may not be patented yet so you need strong confidentiality.Do they offer a professional service by responding to emails/phone calls etc. What do you know about your supplier? Go with recommendations/a good reputation.Is time critical? time limits? time to give to the developer
-Do you need legal advice?(fees/costs of this to consider) "Yes you do"
Sara also went through the legal terms you would come across in an agreement. Force Majeure,royalty,jurisdiction,net sales price,net profit,termination rights and legal clauses such as warranties,indemnities,dispute management,duration of agreement, duration of obligations under the agreement.
You need enough information to make the decision to sign so read the agreement and understand it
the agreement must be in writing to count not just what is talked about.
When you read the agreement have all of these questions in mind-
Who will own the background ip, the foreground ip(improvements/other new ip)?
A confidential information clause
What do you get for your money?
When do you get it?
If you don't get what you where expecting, what can you do about it?
If there is anything you do not understand DO NOT SIGN IT!
For more information contact
Sara Ludlam, Ludlams IP Specialists Telephone: 0113 200 68 96 http://www.ludlams.co.uk/.co.uk