InternationalUSRemember you can easily switch between MIP US and MIP International at any time

My licensee may be in financial difficulty. How can I protect my IP?


I think one of our licensees may have financial problems. Although I am reluctant to take drastic action that may sever our business relationship, how can I ensure that we protect our IP?

The lawyer

If you have a financially distressed licensee, the first step is deciding whether to terminate the licence. A distressed licensee can devalue your IP and limit your ability to grant licences to other, potentially better performing parties. If the licence is exclusive, all avenues to monetise the IP may be blocked. Even if not exclusive, other existing or future licensees may be deterred from paying because they would be disadvantaged in competing with a licensee who is not paying.

Additionally, it may be important to terminate if the licensee's precarious position creates a risk that competitors to whom you would never have licensed could get access to your technology through voluntary M&A activity or bankruptcy. This may be particularly important where trade secrets are involved, although some courts will issue orders protecting trade secrets to prospectively block such harmful releases of trade secrets.

If termination is necessary,...


Please log in to read the rest of this article.

New to Managing Intellectual Property? Take advantage of one week’s FREE access and become a Managing IP member today. It’s free to join and the benefits start straight away.

Already registered?

Please make sure you log in to read the rest of the article.

Log in

Join us now

Gain 7 days FREE access when you register now.

Join here

profile

Managing IP

ManagingIP

ManagingIP profile

Pleased to welcome ARIPO Director General @e58abf7a7b71453 to our office during his brief visit to London today! http://t.co/Yshgv3W5yd

Jul 30 2015 04:58 ·  reply ·  retweet ·  favourite
ManagingIP profile

New @uspto Commissioner for Patents is Drew Hirshfeld with immediate effect. Replaces Peggy Focarino http://t.co/yVh2nxvuWC

Jul 30 2015 03:03 ·  reply ·  retweet ·  favourite
ManagingIP profile

This could go on for ever ... https://t.co/rcsYQr7A3A

Jul 30 2015 02:58 ·  reply ·  retweet ·  favourite
More from the Managing IP blog


July/August 2015

The 50 most influential people in IP

Our 13th annual list of the 50 most influential people in IP is the most diverse ever. But do you agree with our selections? Join the debate online and on Twitter using the hashtag #MIP50



Most read articles

Supplements