Doing IP Deals: Licences And Sales

With intellectual property ("IP"), the focus is often on protection (generally in the form of registration) and enforcement, which often takes the form of an infringement action. Yet, there is also always a great deal of transactional activity taking place in respect of IP assets. This activity tends to fly under the radar, but two recent deals have made the news. These deals are examples of two of the most common IP transactions: licences and sales.

Licensing: Starbucks and Nestlé

It's the sheer size of the licensing deal between Starbucks and Nestlé that's put it in the spotlight – a reported USD7.5-billion fee. What's happened here, is that Starbucks has granted Nestlé a worldwide licence to market, sell and distribute coffee, tea and juice under the Starbucks brand.