Legal Question in Intellectual Property in New Hampshire

I would like to license a patent I have pending under my personal name to my SMLLC so that I can begin manufacturing and producing the product. What is required of a license agreement in regard to compensation? For example, could I license the product to my SMLLC for free, but later pay myself via an owners draw? Thank you!


Asked on 6/07/21, 12:56 pm

1 Answer from Attorneys
Lawrence Graves Coolidge & Graves PLLC

You should consult with your CPA to determine the best tax strategy for this -- assuming that you are on both sides of the transaction, you have wide latitude on the terms. From the legal side, you can charge a de minimis royalty or up to the full market rate, and the royalty can be contingent on such things as the overall profitability of the LLC.

Best wishes,

LDWG

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Answered on 6/07/21, 1:03 pm


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