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Formula Ownership and Profits?
My friend wants me to help her formulate cosmetics for her cosmetic line. Once everything is said and done, who owns the formula and all the products produced? Also what are my rights as far as profits when these products are created? I’m fairly new in this market and I haven’t found a lot of information online. Thank you.
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7 Replies
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That is all subject to negotiation between you and your client …
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First, better ask yourself, has your friend actually made any money doing this? Does she own a brand? Does the brand have a successful Web site and social media pages? Does she know any influencers?
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MarkBroussard said:That is all subject to negotiation between you and your client …
No offense, but if you don’t have anything helpful to say, please don’t respond.
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Belassi said:First, better ask yourself, has your friend actually made any money doing this? Does she own a brand? Does the brand have a successful Web site and social media pages? Does she know any influencers?I don’t know all this. What does this have to do with my question?
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LynnK said:MarkBroussard said:That is all subject to negotiation between you and your client …
No offense, but if you don’t have anything helpful to say, please don’t respond.
Excuse me, but I gave you the correct answer to your question. It is all a function of your negotiations. You can retain an interest in the products with a royalty paid to you or you can negotiate that the IP is owned by your client, you get your development fee and you both go on your way.
So you need to define in your contract who owns the IP to formula. If you retain the IP, then you need to negotiate whether or not a royalty is paid to you.
As I said, it’s all subject to negotiation between you and your client.
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First, better ask yourself, has your friend actually made any money doing this? Does she own a brand? Does the brand have a successful Web site and social media pages? Does she know any influencers?I don’t know all this. What does this have to do with my question?
It has everything to do with your question, and if you do not know the answers I suggest that it would be better not to get involved. Because, you know, SALES and MARKETING.
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@MarkBroussard was right, even if his first answer was short. There’s no set rules on who owns what no matter where you are- it all comes down to creating and negotiating terms between the people involved. These are things you need to set up and come to an agreement with your friend on.
@Belassi is making the point that before you even bother getting into a drawn out discussion of who owns what, it’s worth investigating your approach. Thinking about these kinds of questions and researching is to help ensure you don’t throw your valuable money and time down a hole. You’re on the front end of what will be a big undertaking-take time to really evaluate from many perspectives (including legal rights,sales position, sourcing logistics).
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