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Showing posts from May, 2014

Kacharagadla Featured Article

The Five Characteristics of Successful Innovators

There is not much agreement about what makes an idea innovative, and what makes an innovative idea valuable. For example, discussions on whether the internet is a better invention than the wheel are more likely to reveal personal preferences than logical argumentation. Likewise, experts disagree on the type and level of innovation that is most beneficial for organizations. Somestudiessuggest that radical innovation (which does sound sexy) confers sustainable competitive advantages, butothersshow that “mild” innovation – think iPhone 5 rather than the original iPhone – is generally more effective, not least because it reduces market uncertainty. There is also inconclusive evidence on whether we should pay attention to consumers’ views, with somestudiesshowing that a customer focus is detrimental for innovation because it equates to playing catch-up, butothersarguing for it. Even Henry Ford’s famous quote on the subject – “if I had asked people what they wanted, they would have said fast…

3 Pitfalls to Avoid in Licensing Agreements

Whether you are a licensee manufacturing a product or the brand owner licensing your product, the definitions, requirements and terms stipulated in the licensing contract are crucially important. Since many of us have no idea how to go about finding a brand licensing professional, we relegate negotiation of the business terms to our attorneys
The truth is, attorneys are qualified to address the legal language, such as reps & warranties, indemnification and infringement, but in most cases are not familiar enough with licensing agreement terms, including test protocols, authorized channels, approvals and quality controls, to negotiate them properly on our behalf. Unless you, or someone on your team, has experience in negotiating licensing agreements, you risk falling into one of the three most egregious business term pitfalls in standard licensing contracts. Watch out for:
Nets sales.This may be the most important definition in any licensing contract. The royalties owed are dependent …