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International Manufacturing and Sales License Agreement Needed

I am working with a Cleantech company who is looking to enter into a number of international markets through Licensing Agreements for Manufacturing and Sales. The structure we are contemplating includes an up front Licensing Fee and a percentage of sales for residual payments going forward. Does anyone have a similar Agreement or template you could share with me to work from toward fashioning agreements for our needs? What are the potential issues or pitfalls with there type of agreements? How does one insure sales for payment of residual payments? I appreciate the assistance in advance. Please feel free to contact me directly at kschwartzatalterlume [dot] com, or by phone. Best, Regards, Keith Schwartz CFO, AlterLume Inc. 650-465-1809

Answers

Topic Expert
Marc Schwartz
Title: Partner
Company: Schwartz International
(Partner, Schwartz International) |

Keith:
We're a boutique international tax advisory firm and would be pleased to have a brief call (free of charge) to help you identify the key business/tax issues and help you with the items you identify in your request.

Harold D. Tamayo
Title: Vice President of Finance
Company: MHA Inc., a Roper Technologies Company
LinkedIn Profile
(Vice President of Finance, MHA Inc., a Roper Technologies Company) |

Keith, every agreement can be different based on tax issues, regulations, whether to keep registration rights, etc. Although a check list (or template) would help, I would suggest looking at each market in a unique fashion guided by your strategic intent. Based on my international experience, you might not want to license at every market but instead manage your business expasion differently.

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