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    Letter of Intent

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    pierololli
    This letter of intent outlines the proposed terms of a licensing agreement between an inventor and a company. The inventor owns the intellectual property rights to a pending patent and trade secrets. The company wishes to obtain an exclusive or nonexclusive license to exploit the technologies in specific countries for a set term. The company would be responsible for manufacturing, marketing, and sales of licensed products. In exchange, the company would pay the inventor a royalty percentage of net sales and may provide an advance payment against future royalties upon signing a formal license agreement.

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    Attribution Non-Commercial (BY-NC)
    Download as RTF, PDF, TXT or read online from Scribd

    Letter of Intent

    Uploaded by

    pierololli
    3K views2 pages
    This letter of intent outlines the proposed terms of a licensing agreement between an inventor and a company. The inventor owns the intellectual property rights to a pending patent and trade secrets. The company wishes to obtain an exclusive or nonexclusive license to exploit the technologies in specific countries for a set term. The company would be responsible for manufacturing, marketing, and sales of licensed products. In exchange, the company would pay the inventor a royalty percentage of net sales and may provide an advance payment against future royalties upon signing a formal license agreement.

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    © Attribution Non-Commercial (BY-NC)

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    This letter of intent outlines the proposed terms of a licensing agreement between an inventor and a company. The inventor owns the intellectual property rights to a pending patent and trade secrets. The company wishes to obtain an exclusive or nonexclusive license to exploit the technologies in specific countries for a set term. The company would be responsible for manufacturing, marketing, and sales of licensed products. In exchange, the company would pay the inventor a royalty percentage of net sales and may provide an advance payment against future royalties upon signing a formal license agreement.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as RTF, PDF, TXT or read online from Scribd
    Download as rtf, pdf, or txt
    3K views2 pages

    Letter of Intent

    Uploaded by

    pierololli
    This letter of intent outlines the proposed terms of a licensing agreement between an inventor and a company. The inventor owns the intellectual property rights to a pending patent and trade secrets. The company wishes to obtain an exclusive or nonexclusive license to exploit the technologies in specific countries for a set term. The company would be responsible for manufacturing, marketing, and sales of licensed products. In exchange, the company would pay the inventor a royalty percentage of net sales and may provide an advance payment against future royalties upon signing a formal license agreement.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as RTF, PDF, TXT or read online from Scribd
    Download as rtf, pdf, or txt
    of 2

    Letter of Intent

    Dear ______________ [insert name of contact person at company that wants to option
    invention]:

    This letter reflects our discussions regarding the terms and conditions of the proposed licensing
    agreement for certain technologies, more specifically described below. Please review this letter
    of intent, and if it accurately reflects our discussions, return a copy with your signature. We will
    then proceed to a written draft of the licensing agreement. Thanks for your cooperation.

    Letter of Intent.
    This document is a Letter of Intent only . It is not intended to be, and shall not constitute in any
    way, a binding or legal agreement, or impose any legal obligation or duty on Inventor and
    Company.
    The Properties.
    _____________ [insert your name] ("Inventor") is the owner of the certain proprietary and
    intellectual property rights collectively known as "the Properties." The Properties include: US
    Patent Pending #_____________ [insert patent number] US Patent Application #___________
    [insert patent application number], and certain Inventor proprietary information and trade
    secrets
    The Grant.
    _________________ [insert name of company that wants to option your invention]
    ("Company") is a manufacturer and distributor who desires to enter into a Licensing Agreement
    (the "Agreement") for the purpose of [exclusively or nonexclusively] exploiting the Properties in
    the form of products (the "Licensed Products") throughout _________ [insert countries or
    regions for the license]. (the “Territory”) for ___________ [insert the length of the potential
    license, for example, “five years” ] (the “Term”). The license shall not include the right to assign
    or sublicense such rights to other parties without the express written consent of Inventor.
    Operations.
    Company will bear all responsibility for manufacturing, advertising, marketing, promotion and
    support of the Licensed Products. Company will keep accurate records of accounting,
    distribution and costs and will make these records available for inspection on a reasonable basis.
    Royalties.
    Company shall pay to Inventor a royalty rate of ______% [insert royalty rate] of all "Net Sales"
    from the Licensed Products or any Licensed Products that use technology developed or derived
    from the Properties. "Net Sales" shall be all revenues (less credited returns) from the sale,
    distribution and transfer of any such products by Company.
    [ ] Advance [optional].

    Letter of Intent Page 1


    As an advance against future royalties, Company shall pay to Inventor $__________ [insert
    advance] upon execution of the Agreement.
    License Agreement.
    In the event that the parties agree to proceed upon these terms, Inventor and Company agree to
    use their best efforts to execute a written contract incorporating the terms of this Letter of Intent
    on or before ________ [insert date when option must be exercised].
    If this accurately reflects your intention, please sign, date and return the enclosed copy of this
    Letter of Intent.

    _________________________________ Dated: ____________


    Inventor
    _________________________________ Dated: ____________
    Company

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