Technology Transfers, Licensing, and Franchising


The use of technology transfers, the licensing of copyrights and trademarks, and franchising are all business decisions that must be given very careful consideration. Having a lawyer involved from an early stage is an incredibly valuable tool and can help avoid many costly mistakes. At FelceLaw, we can provide businesses with the advice needed to steer negotiations in the right direction without interfering with the commercial direction of the proposed deal. In addition, having your attorney create the initial draft of your tool is an important negotiation tactic. The focus of negotiations often deals with the terms already on the table. As such, creating the first draft is a great way to focus the conversation.

Concerns for Technology Transfer Deals:

A technology transfer deal is much more than a one time transaction. Often, the transfer of technology may involve a continuous relationship in the form of repairs, parts servicing, training, implementation, and other services. In addition, the intellectual property right holder needs to ensure that this technology is protected so as to avoid missappropriation. Typical areas of concern include the misuse of the technology, reporting infringing activity, defending the rights to the property, and improvements made on the technology. Depending on the jurisdiction and subject matter, there are limitations on the amount of control a grantor may have. Many technology transfers also occur in the context of franchising, which is an undertaking that raises its own areas of concern. An attorney can help navigate through these difficult and confusing decisions while protecting your business needs.

Concerns for Franchise Deals:

Franchising is an important decision both for the franchisor and the franchisee. Each has independent and contrary concerns to the other and a deal will remain unlikely unless a balance is struck. Trademarks are usually implicated and a mark owner should be concerned that the brand image is protected by the franchisee. However, care must be taken to not exercise so much control so as to inadvertently expand the liability of the franchisor. On the other hand, franchisees will seek to ensure that the premiums and restrictions are worth the goodwill associated with the brand recognition. While the example above is helpful, there are many other competing concerns that arise during these deals. FelceLaw can help your business strike the right balance and grant or acquire a franchise.

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