How to Mitigate Risks in an Exclusive License Agreement?
To mitigate risks, both parties should:
Conduct Thorough Due Diligence: Ensure a comprehensive understanding of the technology, market potential, and legal standing of the intellectual property. Negotiate Clear Terms: Define clear and precise terms regarding the scope, financial obligations, and performance expectations. Include Exit Clauses: Incorporate clauses that allow for termination or modification of the agreement under specific conditions. Monitor and Review: Regularly monitor the performance and market relevance of the licensed technology and review the terms of the agreement as needed.
