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Licensing Agreements For Your Products And Business Systems

By January 20, 2015November 19th, 2017Business Contracts, Business Lawyer, Internet Lawyer

licensing agreements

In recent articles, I’ve shared with you two effective ways to grow your business on the Internet (sampling and endorsed reciprocal promotions). A third strategy to consider is licensing agreements.


Selling licenses for your products and business systems to other businesses can be a profitable method for growing your company without additional labor costs. Your licensees may pay an initial licensing fee in addition to ongoing royalties on sales made.

If you’re licensing a business system you own, it’s important to comply with applicable business opportunity rules and regulations. Your Internet business attorney can answer any questions you have about these limitations.

Related Article – 7 Keys To Picking The Right Internet Lawyer For Your Business

In addition, you’ll want to avoid setting up the licensing arrangement in such a way as it could be construed by the government as a franchise.

Why licensing agreements instead of franchises?

Franchising is a heavily regulated method of doing business because of a long history of franchisor abuse of franchisees. When you’re a franchisor, you’re under heavy scrutiny from federal and state agencies looking to protect both franchisees and their consumers.

Related Article: Licensing Agreements – How To License Products In 3 Easy Steps

Licensing agreements properly drafted by a qualified business lawyer will ensure that you get what you want from the deal while protecting your intellectual property rights in the process.

Mike Young, Esq.

Author Mike Young, Esq.

Mike Young has been practicing business and technology law since 1994 and is an angel investor in startups. He's been an entrepreneur since 1988. To get legal help from Attorney Young, click here now or call 214-546-4247 to schedule a phone consultation.

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