The licensing agreement provided in Appendix B, as written or as a form thereof, can be an extremely important document to you as an inventor faced with the opportunity to license an invention. In terms of the time and effort that was put into crafting it, the document is worth many thousands of dollars in legal fees.

Thirty-some years ago, when I cut my first deal, an executive and I might have handled many points informally verbally and on a handshake. But because of the way executives play musical chairs these days, jumping from job to job, company to company, it’s best not to depend on informality, but to memorialize as much as possible in writing.

Every agreement has its own spirit. Therefore, you should always be clear about the spirit of every contract you sign. Corporate lawyers like things vague. It works to their favor, should push come to shove, because lack of specificity and haziness leads to more than one interpretation. The corporate lawyer can use this situation to muddy the waters. This puts you in a defensive position that likely forces you to spend money on legal counsel and the court for interpretation.

Sometimes I cannot get the spirit and specificity into an agreement. Then I articulate my understanding and put it on record through letters and e-mails to the manufacturer. Although it’s not part of the formal agreement, if I ever get into a court of law, a judge and jury may take these into account. Save your e-mail!

Disclaimer: I am not an attorney-at-law. I am not giving legal advice. The agreements in this book are composites of many I have negotiated. They are provided as a quick-access reference only. Each deal you make, as in each industry, will have its own esoteric requirements. Seek legal advice from a lawyer.