When one has finished building one’s house, one suddenly realizes that in the process one has learned something that one really needed to know in the worst way – before one began.

Licensing is in many ways a knowledge industry. The licensor has as a result of innovation, intensive system development and product refinement, gained market acceptance and customer loyalty. The licensee wishing to exploit his or her market position, shares his or her knowledge with the licensee.

The platform on which the licensee is built is its Intellectual Property.Licensor’s gain a revenue stream by parting with this knowledge.

A potential licensor is wise to protect the Intellectual Property involved in the license and ensure the monopoly position is not eroded by seeking the advice of a professional with experience and know-how of how to develop a licensable business model. They choose to work with this specialized professional with the aim of building, expanding, or redefining the systems in the business model which are most attractive to potential licensees. Once the system is built, the licensing professional will direct the client to the appropriate legal council who can prepare licensing documents to protect the licensor’s intellectual properties.

The most important part of a license in our opinion, is the quality and comprehensiveness of the support tools for the licensee. From operating and procedure manuals, through to business development advice and guidelines, a well-run license will allow licensees who follow the model to achieve pre-determined results.

Taking the time to consider the licensed model for a business and then go through the step by step approach for building out a model, is the largest hurdle for most entrepreneurs, but also brings the greatest reward. The systems in the license allow the licensor to ensure their systems, innovation, and the development of their intellectual property is carried out in a consistent manner and that the brand of the intellectual property and its associated bran are protected and not diluted.

Our team is one of very few firms in the North American market that has the practical application and proven track record to support clients in building their business model from concept through to management of licensees.