Questions

Let's say you're Airbnb (except brand new, read not that many users in your system) and you meet a company that has 20K+ new users and this company wants to license your brand/platform so they can use it for their audience of 10K who is already doing roughly what you're doing but using other platforms rather than yours. How does one structure a licensing deal with this new company? ie. you can use our platform and we take X cut? What does the person bringing the 20K new users to you get in return? How does a company like say Paint Nite structure their licensing arrangements?

Hi,
Your description is not very clear, so it is a bit difficult to answer. You are welcome to contact me for further - specific - advice.
License agreements have various options/versions to them. The most common form is this: company A (owns some form of technology) licenses their tech to Company B. company B pays company A royalties (this is the fee for using the technology). Royalties have numerous options: sometimes it's a one time fee, sometimes an annual fee, sometimes a fee for each unit / amount of users/stations, and sometimes it's a combination: set fee + payment for each usage of the license.
Good luck


Answered 5 years ago

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