Term sheet license

Ten years ago, our international IP lawyers did maybe one or two licensing agreements a year. Five years ago, it was maybe one or two every four to six months. Fast forward to today and we are doing one or two a week. Why the big change? China wants foreign technology and it understands it must pay for it.

This is not to say China IP licensing deals are not without their own brand of major and minor pitfalls. For some examples of what can and does go wrong on China IP licensing deals, check out the below:. One of the risky things our China licensing lawyers are constantly seeing are proposed China licensing deals usually reflected in an MOU or an LOI that involve the foreign company usually American or European purportedly getting an ownership stake in its Chinese counter-party entity.

This is risky for the simple reason that it cannot be done with Chinese privately held companies. As you can imagine, this means any proposed deal that calls for the foreign company to take ownership in the Chinese side must be remade to actually work.

If you have any questions about these samples, please contact us. A license to Harvard-owned patent rights will be subject to terms and conditions similar to those set forth in the form agreements in the links below. Some terms may be modified to address unique aspects of each situation. Financial terms, in particular, will be determined based on the technology being licensed, the business model of the licensee, and market standards in the industry in which the licensee is operating.

A note on global access —Development of technologies borne from Harvard patent rights may lead to licensed products that could result in significant public health benefits in developing countries. Harvard has made a commitment, through its participation in the organization Universities Allied for Essential Medicines, to promote affordable access to such products in developing countries.

To meet that commitment, we may require provisions similar to those given in the link below in exclusive licenses of such potentially impactful technology. Global Access Language. A note on third-party proposed products —In the case of an exclusive license granted in all or many fields, the licensee may initially be focused on a limited number of products or uses for the licensed technology.

Third-party Proposed Products Language. Sample Nonexclusive License for patent rights. Are there any preparations before discussing term sheets with investors? Is it possible to walk away from a signed term sheet?

Should I get a lawyer to prepare a term sheet? Getting a lawyer is up to you. Though it is practical to do so, most of the time, the lawyer is only needed to review the formulated term sheet and counsel investors on the advantages and disadvantages of provisions. The best preparation that must be done before talking terms with investors is education. As the beneficiary, you should have the knowledge about the technicalities of your current undertaking. The lack of understanding in some aspects can put you at a disadvantage for as long as the investment is effective.

Yes, it is possible.