Do you know the benefits of purchasing a licensing agreement for your company? How do you negotiate the correct terms and conditions of the agreement for the most benefit? All your questions are answered in this episode of PKF Texas – The Entrepreneur’s Playbook® with Audit Contract Compliance Manager, Carlos Gomez.
Jen: This is the PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski and I’m back once again with Carlos Gomez, a Contract Compliance Manager here at PKF Texas and one of our Approachable Advisors™. Carlos, welcome back to the Playbook.
Carlos: Thanks, Jen.
The Benefits of a Licensing Agreement
Jen: So, another facet of the contract compliance arena is licensing and licensing agreements. And so, what are the benefits of a company having a licensing agreement or purchasing a licensing agreement?
Carlos: There are many benefits. Some of the easiest ones is software licensing. Every company usually needs something like Microsoft Excel, which we use all the time, or it could be something more complex—whether it’s a pharmaceutical company that has done years and years of research and development spent that money or developing technology that can be used into other devices. And then it can be something just as simple as a trademark or name using Disney on t-shirts to sell in the marketplace.
How We Can Help
Jen: How do we get involved with licensing agreements with third parties or our clients? What do you typically look for?
Carlos: We look for clients that are either looking to execute agreements where we can help them negotiate the correct terms and conditions of the agreement in order to be most beneficial for them when they license out anything—whether it’s software or just name, image, and likeness. Or we actually work with the licensee in order to help set their accounting systems up to report correctly and understand the agreements that they’re getting into.
Jen: Perfect. Sounds good. Sounds like there’s a lot of information to go on with this.
Jen: Perfect. We’ll get you back to talk a little bit about that next time. Sound good?
Carlos: Yes, ma’am. Thank you.
Jen: This has been another thought leadership production brought to you by PKF Texas – The Entrepreneur’s Playbook®. For more information about this and other topics, visit www.pkftexas.com/ContractCompliance. Tune in next week for another chapter.