- Brown Belt
- Posts: 517
- Joined: Fri Jul 25, 2008 3:11 pm
- Location: Melbourne Australia
I know all Inventors are keen to Licence their new Invention to a Manufacture, but reading the contract and understand exactly what you are signing. I have just seen a contract signed by a Client and it looks to me almost like a product Lock-out Contract.
Consider this, yes you have your great Invention Patents Applied, make sure it does not have a No-Minimum royalty period for 2 years like this one, the claims to I.P Rights by the Manufacture in this contract are so broad it could also lock-up another 10 Inventions made by the Inventor now and into the future.
I have heard of stories about Lock-Out Contracts but never seen one until today, this contract leaves the inventor paying for the say two patents all costs and a small amount of royalties over 4 years.
Some Manufactures do this to miss lead the Inventor and Lock them out of the Market for a Period of time so it will not affect their market share and they will not have to pay for tooling for the product, so basically the manufacture pays a fee to keep a product out of the market at the Inventors loss of true royalties.