Can a royalty agreement be made for an FMCG product idea instead of it being bought from you?
I am the ideator that's put together the idea and packaging for an FMCG product.
I'd prefer to have royalties paid to me instead of the idea and patent being purchased from me (by a company) once-off when it's too early to tell the true worth of the product. Also, a once-off purchase restricts me from approaching other FMCG outlets.
Can a royalty agreement be made for an FMCG product idea instead of it being bought from you?
-
it sounds like you want all of the benefits and up-side potential but none of the work or risk. In my experience this won't go very far. – Theao 10 years ago
-
Can you clarify what you mean by FMCG? I'm not familiar with the term, and a quick Google search revealed a number of options that seem like they might apply. – rbwhitaker 10 years ago
-
Fast Moving Consumer Goods. Basically stuff you would buy on daily or weekly basis – User60812 10 years ago
1 Answer
Yes it's called licensing.
You sell the company right to manufacture and distribute the product.
Now as far as approaching others, that may not workl out so well for you. Normally these agreements are exclusive. So you'd only be able to approach other companies once the contract ends. It's also bad business practice. When you license a product to someone else, you effectively partner with them, so in approach others, you're "screwing" your partner, which is never a good reputation to have in business. To License a Patent or assign
