Alternatives to licensing Clause Samples

Alternatives to licensing. In deciding how to most profitably mobilize intellectual property, a company should consider a wide range of options. • New venture. If the product and the supporting business- structure exist in the company, though the risks are high, beginning a new venture of developing, marketing, and selling a product promises the highest reward for the in- tellectual property. • Acquisition. Buying a new company is less risky than be- ginning a new venture because much of the costly devel- opment has been completed and the infrastructure for a successful production line is in place. • Strategic alliance. If two companies share mutual inter- ests, it may benefit both to consider forming an alliance that would enable profit-sharing. Through an alliance, ei- ther the firms may use each other’s manufacturing skills to take complete advantage of a market, or one company may agree to market and sell products manufactured by the other company. • Joint venture. When two companies have more than a few ideas in common, they may wish to consider forming a third company as a joint venture. If the skills and re- sources of the participants are particularly complementa- ry and both sides are willing to diplomatically deal with the risks, rewards and operation of the company, then this is certainly an appealing option. By licensing out its technology, a company may generate in- come from unused portions of its intellectual property. In addi- tion to making this potential energy kinetic, licences enable a company to exploit other markets by allowing the licensee to apply the existing technology to a different market. When an invention is useful to several industries, licensing can prove profitable to both the licensor and the potential licensee as experts in separate fields. Licensing out is a good way for a company not only to enable its invention to reap the benefits of other industries but also to capitalize on the potential of foreign markets. Licensing to firms for production and distribution to different populations can en- able a company to further profit from its technology while pro- tecting itself from the overheads required to participate in for- eign markets. Licensing out offers the additional benefit of allowing the lic- ensee to advertise itself better as well as to make improve- ments (which can give the licensee varying degrees of liberty, thereby making the license more desirable) upon the invention. When a company detects property infringement, its most eco- nomic...