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Royalties and Licencing

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Glasshouse Advisory has the economic and commercial tools to help clients develop licensing strategies that maximise IP value.

Effective licensing strategies extend IP into new applications and regions; generating incremental earnings with little investment. However, there are many facets to a successful licensing program: robust IP ownership structures, targeted selection of partners, structuring an appropriate royalty framework, and implementing effective governance procedures.

When helping a client develop a new licensing strategy, we typically carry out each of the steps described below. In other instances targeted support is required.

  • Development of IP ownership structures that are commercially robust and tax effective.
  • Scenario valuations to quantify the relative attractiveness of licensing relative to in-house IP commercialisation, joint ventures and IP sales.
  • Use of databases to map the IP and licensing landscapes to identify potential partners.
  • Development of a strategy framework that prioritises IP applications and regions, while clarifying the attributes of targeted licensees.
  • Determination of appropriate upfront fees, milestone payments and ongoing royalty mechanisms. Assessment tools includes Glasshouse Advisory’s IP Rating process, royalty benchmarking and economic analysis.
  • Articulation of the strength and value of IP in licensing information memorandums.
  • Development of a licensing governance process that clearly identifies the rights and responsibilities of the licensor and licensee. Where required, we work alongside IP lawyers from one of Xenith IP Group’s specialist firms.
  • For licensees, we ‘kick the tyres’ of proposed royalty mechanisms and licensing terms.

It is Glasshouse Advisory’s comprehensive understanding of the IP landscape, and integrated skillsets that enables the development of licensing strategies that leverage IP value while mitigating risk.

Extensive experience in advising on arm’s length transactions, together with an in-depth knowledge of IP economics, differentiates our transfer pricing practice.

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