Intellectual Property and Innovation Protection

Running Head: MEMO
Memo
Student’s Name
Institution
Date

MEMO 2
To: Milly and Tui O’Rourke
From: Adviser at IP and Innovation Solutions NZ Ltd (IPISNZ)
Date: 9/8/18
Subject: Intellectual Property and Innovation Protection
The move to commercialize your current invention and innovation is one of the noblest
moves as far as Poseidon Enterprises is concerned. The use or adaptation of existing
technologies or new ideas or solutions developed by third parties can help companies improve
the quality of their products or services, for a reduced cost. Buying these technologies or
obtaining licenses for use, instead of investing in the preparation of customized solutions, are
cost-effective alternatives, especially for small and medium-sized companies with limited
resources. Likewise, for the company that sells a product or a manufacturing process of better
quality, the sale of this knowledge or the granting of licenses can generate additional income. As
for the inventors who lack capital or commercial skills, the conclusion of agreements with
companies can help them to market their creations. When a technology is sold or sold, property
rights are transferred from the seller to the buyer at a price agreed upon by both. When the owner
of a technology has no market experience, the ideal would be to find a buyer and negotiate their
sale. On the other hand, if you prefer to grant a license on technology, what is transferred is the
right to use it. The conditions of use of the technology, the terms and the geographical scope of
the license are set when negotiating the corresponding agreement. Unlike what happens in the
sale, the licensor retains ownership of the technology; In addition, it can maintain control of
manufacturing and sales, and grant licenses to as many companies as it deems appropriate
(Frankel, 2011).

MEMO 3
Signing a license agreement means being part of an association, that is, a long-term
relationship in which the licensor and the licensee collaborate to maximize their respective
benefits. If this partnership is successful, both parties will benefit from the implementation of the
product in the market. The most frequent reasons that licensors cite to enter into a license
agreement are the use of better manufacturing capacity, more extensive distribution networks,
greater knowledge of local conditions and the management capacity of the licensee. Thanks to
the license holder, the licensor can ensure more effective and easier access to the markets than if
he had tried to achieve it on his own. The licensee will benefit from superior technology. The
license agreements include the clauses that the parties deem convenient. For both parties to
obtain satisfaction, the agreement must be beneficial for the licensor and the owner, and their
interests must not compete with each other. Among the main elements of the discussion are the
conditions of payment (amount of rights, terms and incentives to maximize profits), the
geographical scope of the license, the exclusivity thereof, the right to introduce improvements in
technology, etc. . The willingness to act flexibly and to find alternatives in cases of blocking
negotiations will be a very favorable factor in forging a mutually satisfactory and profitable
partnership (Finch, 2016).
There are no set rules or terms when it comes to negotiating a license agreement. The
perfect agreement is one that gets the greatest benefit for all parties involved. Thus, the terms are
completely negotiable and may vary. Nevertheless, it is essential to consider the following points
(Int'L, 2015).
Ideal for the inventor is to get as high as possible and royalty or royalties such a high
minimum annual payment as possible. Of course, the manufacturer to reduce risks bet, which