Forums: Discussions for entrepreneurs and small business.

I am trying to negotiate a licensing agreement with a moderate-sized toy company for my patented product.  The company is interested in the product and wants me to offer a proposal.  I like what I`ve seen of  the company so far but I don`t have any idea what to ask.  Does anyone know what the standard licensing percentage is for a new toy product (or range of percentages)?  I would greatly appreciate any input.

thank you,

Bob777

Please do not assume that everyone witholds information to gain from others.

There truly are people who are unknowing about certain things.  Would you have responded like this if it were your son asking the question?  We really have no idea, it has not reached that part in development. Thank you for the input.

Yes,  a percentage of the toy company`s sales, though I`m not sure whether it`s based on net or gross sales.  The company would manufacure, package, and distribute my product, presumably under the company`s name.  It`s very early in the negotiations.  I showed the toy to the company president at the toy fair in NY last month.  He was interested and asked me to submit a proposal, leaving all the details up to me.  That`s where it stands now.  Are there any sources out there that you could recommend where I might research percentages? 

Thanks very much for your response. 

Thanks for offering that very useful information, Innovator7.  I am really not a businessperson and it is most appreciated and will help.

Hi

I would be interested in hearing how you initially established contact with the toy company and convinced them to consider licensing your patent. I have several ideas for comsumer products that I wouldl like to do like wise but am new to this and don`t know how to accomplish what you have.

Edward Clutter
ideasforrent.com  "Because an [idea] is a terrible thing to waste."