Possible Types of Strategic Product Cooperation Agreements

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Possible Types of Strategic Product Cooperation Agreements
Vish Prashad, Partner, Canada

An associate has developed a product which has attracted the interest of one of my clients to be incorporated into one of their products as an essential component. This would transform my client's product into an industry leader position.
Myself and the associate would like to work out an arrangement that would be fair to both of us and are considering the following options.
1. He produces himself and sell to me as needed.
2. I produce and pay him royalty per piece.
3. He grants me a licence to manufacture at a negotiated fee.
4. I purchase the patent from him outright.
5. Joint venture.
Any comments on the relative merits of the various options or suggestions on additional options?



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