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Four Benefits of Aerospace OEM Licensee Agreements

Large aerospace Original Equipment Manufacturers (OEMs) such as: Lockheed Martin, Boeing, Airbus, Sikorsky, Bell Helicopter, BAE, L3, Raytheon, Northrop Grumman, General Dynamics, Honeywell, Pratt and Whitney, General Electric, Augusta Westland, Rolls Royce, Safran, Embraer, Finmeccanica, Bombardier, Thales, Spirit, Zodiac, Rockwell Collins, and Dassault establish license agreements for numerous reasons. For the remainder of this blog these companies will be called the “Prime” since they are the primary company that designs and assembles their products. InterConnect Wiring has two license agreements with the Primes; one is with Lockheed Martin and a second one with Sikorsky Aircraft. Both license agreements are similar in many respects. Both agreements establish InterConnect as the Licensee for electrical products such as wiring harnesses, cockpit panels, relay panels, and circuit breaker panels. Both agreements allow InterConnect to access the respective Prime’s technical data and specifications, configuration control information, and tooling. InterConnect’s License Agreement with Lockheed Martin is for the F-16 fleet worldwide. InterConnect’s License Agreement with Sikorsky is actually called a Technical Support Services Agreement (TSSA) and it is for all Sikorsky aircraft (military and commercial) worldwide. License agreements benefit many companies and governments throughout the world. Four of the primary establishments that benefit are: (1) users who fly the aircraft, (2) the Primes, (3) logistics companies, and (4) the Licensee.

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Benefit 1 – Benefits to the Users Who Fly the Aircraft

There are many advantages for the users who fly the aircraft. Purchasing products or services from a Licensee instead of the company who designed and made the aircraft include: (a) typically less lead times, (b) lower prices, (c) faster responses to solicitations, (d) better customer service since the Licensee will typically be a much smaller company, (e) knowing that the part is manufactured by an approved source, and (f) knowing that the Licensee already has a contractual vehicle with the aircraft manufacturer should any questions arise about engineering or configuration control.

Benefit 2 – Benefits to the Primes

The second group that benefits from having an aerospace license agreement is the company who designed and manufactured the aircraft (i.e. the Prime). These benefits include: (a) royalty payments from the products and services that the Licensee sells, (b) a trustworthy partner to manufacture and sell their products and services according to their guidelines and specifications, (c) maintaining control of their intellectual property (i.e. their engineering drawings and specifications, and configuration information), (d) limiting the number of companies who provide their products and services, (e) customers are happy since the Licensees in most cases responds faster to solicitations, has lower prices and better lead times, and provides more rapid customer service, and (f) better tracking of the spares aftermarket for their products and services.

Benefit 3 – Benefits to Logistics Companies

Like the Primes there are many advantages for license agreements to logistic companies (also known as distributors). These benefits include: (a) the Licensee is a known, trusted source that can provide products and services according to the OEM’s specifications and standards, (b) the Licensee can set up sub-license agreements with distributors, (c) the distributor does not have to go to the Prime for products and services, and (d) users throughout the world buy more products and services from them because they represent the Licensee.

Benefit 4 – Benefits to the Licensee

The final entity that benefits from aerospace license agreements is the Licensee. The Licensee’s benefits include: (a) access the Prime’s engineering drawings and specifications, tooling, and configuration control information, (b) better opportunities for sales because the Licensee has the blessing from the Prime, (c) recognition from customers that the Licensee’s products and services are equivalent to the products and services of the Prime, and (d) the ability to team and work with the Prime for larger deals and future opportunities.

As listed above, there are many benefits for aerospace license agreements. In the end, it is a “win-win” situation for the aircraft users, the Primes, distributors, and Licensee. If you would like to find out more about InterConnect’s F-16 License Agreement with Lockheed Martin or InterConnect’s License Agreement with Sikorsky (i.e. the TSSA) for all Sikorsky designed and manufactured aircraft or if you want to apply to be a distributor for InterConnect’s aerospace products, please touch here to contact Clare McGarrey, VP Business Development. If you would like a tour of our facility, please click the below button. You can see some of our Licensee Products in action!

 

For aerospace defense and commercial companies who seek a premium wiring and electrical manufacturer and installer, InterConnect implements the processes and services that lead to a successful project delivered on time. We are also there to rescue endangered projects when others fail. The only thing better than saving a project in danger is doing it right in the first place. Start with InterConnect.

John B. Ashour is the Founder and President of InterConnect Wiring.

Our Licenses

We are the sole licensee of Lockheed Martin for F-16 electrical products. Through this agreement, we have access to Lockheed Martin’s F-16 engineering data, tooling and configuration control information. We also have a Technical Services agreement with Sikorsky for all of their aircraft. This agreement allows us to obtain their engineering data needed to rewire helicopters that Sikorsky manufactures.

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