If your business has IP, you should consider how it can be "packaged" and licensed. Licensing domestically and internationally can be a quick and lucrative strategy to increase revenues and expand markets. 

Global markets open new opportunities in which a small business can license it's IP without cannibalizing its existing sales. A company's IP can have different applications for new markets outside of the company's core products or services. And in a global marketplace, an intellectual property can have significant value for one company even as its value may be nearing the end of its life cycle for another.

Foreign licensing agreements are a great way to expand the market for your intellectual property and to profit from your intellectual property. Partnering with foreign companies who already have a business network in place is one of the fastest ways to enter foreign markets. The key to a successful licensing partnership is choosing your foreign licensees wisely, negotiating the right terms, and monitoring their marketing and sales activities.

The first step is researching potential licenses to determine if they would be the right licensing partner. You'll want to verify the company and its track record. References and business history with other licensors, customers, and vendors and in some cases banking are generally the best sources for evaluating a potential foreign licensee. Doing a quick reference check will give you information about the company and its management, and help you decide whether or not the company would be a good licensing partner.

Whether you are an inventor with a market ready intellectual property, or a small business looking to leverage your IP assets, the starting point of your licensing process is creating a licensing strategy. The bottom line to a good licensing strategy is that it convinces a potential licensee to license your intellectual property. 

Here's a quick 6 step outline of how to create a licensing strategy: 

1. Secure IP Rights -These are either registered (i.e. trademarks, copyrights or patents) or unregistered (i.e. formulations, trade secrets, or knowhow) property rights.
2. Develop Prototypes or Identify Product Categories - Build a working prototype or if your IP is a trademark, examples of appropriate types of products (i.e. shirts, toys, posters, etc).
3. Build a Track Record - Test marketing, market research, and customer sales info are key to convincing potential licensees.  
4. Research Potential Licensee - Internet search engines (Google, Yahoo), trade associations (i.e. Apparel, Toys, etc.), and manufacturing databases (Thomasnet.com, Hoovers) are good starting points.  
5. Define the Licensing Relationship - These are the key licensing terms and conditions, including IP rights, licensee use and performance milestones.  
6. Create a Licensing Presentation - Summarize steps 1 - 5 and make it compelling.  

• 1893 COCA-COLA trademark for "nutrient or tonic beverages" registered.
• 1924 Carl Taylor of Cleveland patented a machine that made ice cream cones.
• 1943 "Casablanca" the movie, was copyrighted.

Best Efforts is a clause to help insure that a licensee will do all it can to successfully commercialize the IP. If this issue is not covered, then a licensee can sit on the IP and keep others from exploiting it and bringing money to the licensor.  

Listed below are some of the types of Best Efforts terms that may be included in a licensing agreement:

• Licensee will use its best efforts to /use its reasonable best efforts
• Licensee agrees to produce or sell specified units or specified products
• Licensee agrees to invest specified amount / satisfy demands of trade / not to refuse reasonable request for sublicense
• Penalty for not market/produce/sell by specified marketing date / license converted to nonexclusive / Licensor may terminate upon XX days' notice in writing