What is the name of your state (only U.S. law)? Michigan
My partner and I have won a kitchen product design competition sponsored by a large US Corporation that manufactures and markets worldwide. We are to receive our award and recognition at an international trade show to be held at McCormick Place Convention Center in Chicago next month. We are fairly certain that this company will want to negotiate for ownership or manufacturing rights as per this paragraph of the design application:
SPONSOR’S RIGHTS TO NEGOTIATE FOR OWNERSHIP/USE OF ENTRY DESIGNS: By submitting an Entry, the relevant Entrant grants to Sponsor (a) a right of first refusal to acquire ownership of the design in the relevant Entry and/or a license to manufacture and sell products embodying the design in the relevant Entry, or (b) at Sponsor’s sole option, the right to negotiate in good faith for such ownership or license, to which the relevant Entrant will respond in good faith.
We have have filed our patent application. We have not talked to our patent attorney yet re negotiating a business contract with the Sponsor but I am assuming that we will need to find a different attorney to handle contract negotiations:
1. Should we pay an attorney an hourly fee or work on a contingency basis? What would an appropriate contingency % be?
2. How do we get assurance that should the company license our design they will give us accurate numbers on the number of units sold worldwide?
3. Is there a standard % when asking for royalties?
Any help would be appreciated. And Thank You in advance.
Sincerely,
Mark
My partner and I have won a kitchen product design competition sponsored by a large US Corporation that manufactures and markets worldwide. We are to receive our award and recognition at an international trade show to be held at McCormick Place Convention Center in Chicago next month. We are fairly certain that this company will want to negotiate for ownership or manufacturing rights as per this paragraph of the design application:
SPONSOR’S RIGHTS TO NEGOTIATE FOR OWNERSHIP/USE OF ENTRY DESIGNS: By submitting an Entry, the relevant Entrant grants to Sponsor (a) a right of first refusal to acquire ownership of the design in the relevant Entry and/or a license to manufacture and sell products embodying the design in the relevant Entry, or (b) at Sponsor’s sole option, the right to negotiate in good faith for such ownership or license, to which the relevant Entrant will respond in good faith.
We have have filed our patent application. We have not talked to our patent attorney yet re negotiating a business contract with the Sponsor but I am assuming that we will need to find a different attorney to handle contract negotiations:
1. Should we pay an attorney an hourly fee or work on a contingency basis? What would an appropriate contingency % be?
2. How do we get assurance that should the company license our design they will give us accurate numbers on the number of units sold worldwide?
3. Is there a standard % when asking for royalties?
Any help would be appreciated. And Thank You in advance.
Sincerely,
Mark