June 1, 2017

Comparables for license negotiations

License negotiations for patents will be concluded more rapidly when the parties have accurate comparable data from private licensing deals. Under the TRANDsparency™ system, parties could use real IP data instead of hypothetical scenarios. Since the main sticking point to most licence negotiations is price (ie, royalty rate), having reliable TRAND data available would allow parties to reach agreement on the pertinent IP comparables and a reasonable rate very quickly.

Many small businesses and start-ups fail to enforce their IP because they don’t know their IP’s value and litigation costs are too high. Having an IP system with transparent data could lower transaction costs greatly, because pricing could rely primarily on TRAND comparable data. By lowering transaction costs, many more small companies and startups could afford to participate in IP transactions and would know in negotiations is price (ie, royalty rate), having reliable TRAND data available would allow parties to reach agreement on the pertinent IP comparables and a reasonable rate very quickly.

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When we join together as members of the IP community and share licensing data via Royalty Sunshine Enterprise (ROSE), we level the playing field and reduce litigation and licensing transaction costs for everyone.
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