One of the most effective way to expand globally is to use technology licensing or brand licensing or business process licensing route. This model is less capital intensive compared to direct sales or channel management. International licensing is getting more traction as more and more countries are on same page for IP protection, marketing practices and consumer behavior.
For companies with strong intellectual property, they can exclusively use licensing without setting up their own operation, except pilot project which can provide the working. Many disruptive technologies or old established technologies with brand can emerge this business model.
Brand licensing is a powerful tool for old established companies in consumer industry, luxury segment, consumer durables, media and whole range of industries. OECD countries can tap into large emerging markets through this business model.
We assume that the company already knows about which market to go or they can use Scaale Sales Advisory to find out where they want to go.
Size of the market, competition and their pricing, evaluation of comparable technology or brands, who can be the right licenses or multiple licenses.
Comes up with the terms which includes one-time fee, royalties or build the margin in case there is a supply of material or IP or services. Establish the right business model for monetization keeping in view the experience of local similar deals, IP issues and long term market potential
IP protection issues, work with lawyers on both sides to come up with licensing package and contracts, audit of books to calculate royalty or other monetization tools used, exit issues etc.
Assistance in evaluation of technical capability of potential licensee.
If required we can bring local experts for possible opinions.
Based on the setup process which will provide the plan for number of licensees. The process will be as following :
We will mutually decide the type of licensees needed. Our team will find the potential license or licensees . The list of potential licensees will be approved by the company.
Our team will negotiate the terms with the shortlisted potential licensees. Once there is initial confirmation from potential licensee , they will meet with the company for mutual approval.
After the licensees meet with the company, and once they have mutually agreed to go ahead with the negotiated terms, our team will close the deal involving all stakeholders.
The company can work with us for initial set up and then licensee development.
Once the licensees are in place, the company will have various choices :
- Manage licensee on their own.
- Scaale Sales can manage licensees.
- Scaale Sales can provide licensee audit services, this will be build into agreement with the licensee.