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STRATEGIES FOR NET LICENSING
INTA Daily News
Trademark lawyers need to
“out-think the business and marketing people” when advising
companies on their licensing strategies in the era of the
Internet and digital technology.
“Everyone’s goal is to make money
out of the Internet,” said Steven M. Weinberg of Greenberg
Traurig at a session on "Licensing in Cyberspace" in
Marriott Marquis Ballroom 1/2 on May 4, 2004. But he warned
that the business model of how to do so changes almost daily as
techniques such as banner ads and direct email marketing fall
out of favor. As a result, lawyers often have more experience
than their client’s latest business development manager.
“One of the first negotiating
issues to consider is ‘do the business people know what
they’re doing?’” he said. “This is amazingly important.
Many of the people I deal with don’t have experience in the
online world. It gets to be exciting but stupid, running around
trying to close a deal before the market changes. The answer is
to create real business teams.”
The panel summarized the most
important issues lawyers need to consider in digital licensing,
whether it relates to content, trademarks, domain names or
software. Attorneys need to decide which law will cover the
agreement, an issue that is particularly crucial in the global
world of the Internet.
They should also keep track of
click-through and revenue rates, and advise on the merits of
different triggers for payment between the licensee and the
licensor. Sometimes it may be best to ask for payment when
someone registers on a website and at other times only when
they actually make a purchase through the Internet.
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