If a TTP is a relatively outgoing person and enjoys the process of negotiating at markets and stores, they will likely enjoy Tech Transfer, which involves constant negotiation. A key tactic for effective negotiation is preparation. It allows the TTP to enter a negotiation with arguments ready to be deployed.
New TTPs will undoubtedly be nervous going into their first negotiations, but this is natural. After that first negotiation, we recommend the TTP reflects on what worked well and what didn’t—this allows the TTP to learn from their mistakes, and to not make the same mistake twice. Each negotiation with a new party starts from a clean sheet of paper. They don’t know the mistakes you’ve made in past negotiations, so learn from them and move on.
One of the fundamental principles of negotiating is the BATNA: Best Alternative to a Negotiated Agreement, or, what happens if the negotiation fails to end in a license agreement. With only 25% of invention disclosures ending in a license, most TTPs negotiate with the first qualified license that expresses interest. In those circumstances, there is no BATNA. The alternative is failure. It’s important for TTPs to continue looking for additional potential licensees even after one company expresses interest.
Having multiple potential licensing partners will strengthen the TTP’s negotiating position. Without that, the TTP has very little power and may resort to bluffing during the negotiation. If they then have to back down, the TTP’s credibility will be destroyed in the eyes of that company.
Here’s a presentation on negotiating theory, principles and tactics.