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licensed expansions

Postby lcw_trey » Fri Apr 11, 2008 1:19 pm

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If I had a product licensed and the company decided to go into a expansion off of that product, would I collect royalties from the new products?

Postby Road Show » Fri Apr 11, 2008 4:06 pm

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Only if your licensing agreement provides for you to either: A) collect premiums based on your product's ability to generate revenue through cross selling related products, or B) back out of the licensing agreement if/when such a situation arises.

It sounds to me as though you anticipate your product becoming the springboard to a much broader market opportunity. I would be happy with the fact that any product line expansion by your licensee should have a positive effect on your royalty checks, and let it go at that. The licensee could back away if the percieve you as being greedy.