As a result of the detailed evaluation carried out, the company will arrive at a position where it can decide how much it should pay for access to the technology.  This will also take account of the size of the territory on offer and whether the licence is exclusive or non-exclusive.

Payments will usually be in the form of downpayments or up-front fees for access to the technology and/or royalties on sales. Royalties are a form of rental payment for the use of the technology and are paid after sales have been achieved.

Negotiations are done by following a Heads of Agreement or draft negotiating document which will include:  

• Technology/Intellectual property
• Territories
• Exclusivity
• Payments
• Improvements
• Warranties
• Accounts
• Duration
• Law

This ensures that all the terms of the acquisition are agreed before moving to a legal contract.  Legal advice is then obtained to prepare a contract which will be signed by both parties.

How Enterprise Ireland can help

As well as advising on the strength of each opportunity, TechSearch specialists can assist the company in developing its negotiating position, and working through the Heads of Agreement.
 
They can also advise on how to make overseas evaluation and negotiation visits run smoothly.