ABSTRACT
I’m not aware of a universal blueprint to cover all possible types of licensing deals, but most publishers follow some standard parameters-which vary depending on which side the publisher is negotiating from. Just like the rug merchant who asks his son the sum of two plus two, and the son asks “Am I buying or selling?” the licensee’s (buyer’s) goal is to pay as little as possible and “even less” if it has to incur translating expenses, and for the licensor (seller), the goal is to make as much profit as possible. These are the starting positions from each perspective. But the objective for both sides in any negotiation should be to ensure that the economics work two ways. Each party needs to generate enough revenue to make the transaction worthwhile. The long-term goal is to establish a valuable relationship that creates a trustworthy basis for conducting many fruitful transactions.
