signing the contract
DESCRIPTION
You're now ready to sign your dream team! Join Pete Canalichio in the most complex stage of brand licensing – negotiating the contract.This webinar covers step 6 (Negotiate Contract) of the 8-step process and will walk you through standard licensing business terms that will be included in the contract, including quality assurance and testing, the licensing approval process, royalty payments, record keeping and audits and trademark rights. Understanding these terms and the commitments you will be making is crucial to achieving an effective licensing contract and could save you hundreds of thousands of dollars over the life of your agreement. As a licensee, these are legal requirements that you must comply with throughout the term of the agreement.The fifth of a 6-part webinar series, this webinar will ensure you know the business terms and contractual obligations before you enter into your own licensing agreement.To purchase the comprehensive webinar series, visit www.BrandLicensingExpert.comTRANSCRIPT
Signing Your Dream Team
Pete CanalichioLicensing Brands, Inc.
January 13, 2011
The following slides are an abridged section from our webinar series “How to Build Your Brand Licensing Dynasty”
To purchase the complete webinar and series with audio visit www.BrandLicensingExpert.com
Agenda
• Review of previous webinars • Agreeing the deal terms• Internal deal memo approval• Standard terms & conditions• Signing the contract• Summarizing the process
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Deal Terms Revisited
• Information from the application and conservative business estimator are used to develop deal terms
• Deal terms ultimately form the basis of the license agreement
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Signing the Deal Term Summary
• A completed Deal Term Summary− Clarifies the specific details of the agreement for both
parties− Feeds directly into the contract draft (Schedules B & C)− Puts all the terms in one place for easy access and review
• Physical signing of the Deal Term Summary is recommended – it will eliminate any confusion or misunderstanding
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Standard Contract Terms & Conditions
• Once the Deal Term Summary and Deal Term Sheets are signed, the contract is ready to be drafted. Typical provisions include:− Schedule A Standard Terms & Conditions− Schedule B Scope of License− Schedule C Royalty and Payment Terms− Schedule D Submissions Notice− Schedule E Manufacturer Agreement− Schedule F Quality Standards
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Memo to the CEO
• Larger deals may require the approval of senior management
• In such cases, a memo outlining the details of the agreement may be prepared
• Key sections to cover:− Can the licensee deliver reliable quality and service levels?− How will it help the brand?− Does the financial return justify our time and total efforts?
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Signing the contract!
• Once all the memos, terms and legal copy is agreed and approved, you are ready to sign your dream team
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Summarizing the Process
• Agree all deal terms
• Sign the Deal Term Summary
• Finalize Term Sheet and obtain internal approval
Draft the Contract
• Work with Legal to complete
• Allow licensee ample time to review
• Modify terms as needed to ensure Win – Win
Negotiate Contract
• Draft CEO Memo as required
• Determine quantity of original contracts
• Sign and toast the partnership
Sign Contract!
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This has been a snippet from our webinar series “How to Build Your Brand Licensing Dynasty” To purchase the complete series with audio
visit www.BrandLicensingExpert.com