MedTech Licensing: 5 Ways Working with a Lawyer Benefits Your Company

August 21, 2019 1:30 pm.

MedTech Licensing: 5 Ways Working with a Lawyer

MedTech licensing is a complex area that can result in the need for careful navigation to ensure that your company is both profitable and ensuring that the decisions made support the overall vision of your company. Since MedTech licensing involves your medical technology being licensed for you to one company, more than one company, or even to individuals, it’s important that the decisions related to licensing receive proper attention.

Can working with a lawyer truly provide substantial benefits to your company when it comes to MedTech licensing? The answer is yes. Here are 5 examples of the benefits your company may have by working with the right lawyer.

Determining the Licensing Structure That Best Benefits Your Company

Regardless of whether the idea to license your MedTech is your idea or if another company comes to you with an interest in using your creation, it is important that you choose the proper licensing structure. For example, is using non-exclusive licensing more beneficial to your company? What about exclusive licensing? Should your company rely on sole licensing? Would a hybrid licensing set-up be more beneficial?

Ultimately, the answer as to which licensing structure would most benefit your company depends on the goals of the business. Licensing is a complex area that may impact your company in ways that you did not foresee. Working with an experienced MedTech licensing lawyer benefits your company by explaining your licensing options and how each could impact your business. This insight can help you better mitigate risks.

Helps Ensure Your MedTech Is Properly Protected

If you’re presented with a proposal or a contract that expresses interest in using your MedTech, it’s a very exciting time. It’s easy to fall into a lull and think that the business interested in your creation has both their best interest and your best interest in mind. While there are some businesses that are honest and engage in honest business practices, they may not go out of their way to take advantage of you, but they will look after what is in their best interest first. There are other businesses that aren’t as honest. They may say that they’re interested in doing business with you and lead you to believe that they’re looking to create a deal that is in the best interest of both of you. Yet, their contract may say something totally different.

Regardless of whether the interested business is truly honest or not, it isn’t their job to ensure that you understand the terms of the contract or that the terms are fair to your company. If you don’t have an experienced MedTech licensing lawyer to review the contract, you could find out the hard way that you’ve inadvertently signed over certain rights and protections related to your creation. An experienced lawyer can review the contract or proposal presented to ensure that the terms are fair and that your interests and your technology are properly protected.

Establishing Appropriate Royalty Rates

On the same note as making sure that your MedTech is properly protected is royalty rate. If the contract or proposal includes a discussion on royalties paid to your company, it’s important to make sure that the rates are fair. Factors that may affect the royalty rate include just how close your MedTech is to being market ready, how the MedTech will be licensed, and the importance of your MedTech to the business interested in using it. If the MedTech will become a focal point of the offerings of the interested business, then it may be more deserving of a higher royalty rate. However, proper negotiation is key to keep everyone happy with the relationship.

In addition to reviewing contracts, an experienced MedTech licensing attorney can review the proposed royalty rate. Your lawyer can also work to negotiate more favorable terms if necessary.  

Experienced Relationship Management on Behalf of Your Company

Contracts of any kind don’t necessarily require a bull dog approach. In fact, licensing contracts for MedTech require a close look at the relationship between the parties and their needs. Relationship management is an integral part of long-term partnerships. Careful and attentive relationship management by an experienced lawyer can result in better long-term partnerships for your company. Using your lawyer as a contact point isn’t about intimidating the other business or making it seem as if you’re unavailable to talk with them. Your lawyer should create a seamless experience; they should be a contact point that allows those interested in your MedTech to talk with someone sooner rather than later. This frees up your time so that you can continue to focus on the day-to-day activities of running your company while you are assured that businesses interested in what you offer get the attention they need and your best interests are always protected.

Risk Management and Future Planning

An experienced MedTech licensing attorney can help you better assess current and future potential risks when you’re planning for the future. As your company changes in the future, you’ll need to reassess goals as well as your licensing strategies. A long-term working relationship with an experienced lawyer who takes the time to get to know your company and goals can help you better prepare for anything the future may hold. Technology changes fast, and those changes often result in new regulations that your company may be required to comply with in order to provide your creation to others.

Larsen Law Office LLC – Helping You Prepare for a Brighter Future

As the saying goes, proper planning prevents poor performance. Larsen Law Office, LLC has more than three decades of experience helping businesses just like yours understand their MedTech licensing options, contract review and negotiation, discussing compliance matters, and better prepare you for a bright and successful future in MedTech. To learn more about how we can help you with your MedTech licensing concerns, schedule your consultation by calling Larsen Law at 303-520-6030.