09/08/2018

Licensing Patented Technology

Before a patent application is filed it is essential to understand how the patent system may be used to deliver a commercial advantage. Any patent filing strategy therefore needs to be considered in conjunction with a business strategy.

One of the quickest and most profitable ways to grow a business is to license your patented technology. A license is an arrangement between businesses in which one business gives another permission to make or use its patented technology for a specified payment.

There are different types of license so let’s briefly review the strategies that are available:

• Licensing for royalties – generates a revenue stream by allowing others to use the patented technology.
• Cross license – enables each party to the agreement to practice the other parties patented technology without the threat of patent infringement (also called a collaboration agreement).
• Licensing to manufacture – when patent holders do not have the funds, expertise, knowledge or know-how to bring their technology to market they have the option to grant others a license to manufacture the products.
• Non-practising entities or patent acquiring companies (a.k.a. “patent trolls”) – these companies buy patents for the sole purpose of seeking licenses from companies who released the products after the patent applications were filed.

Accordingly, there are many options available and the right fit for your own business aspirations should be carefully considered.

Please contact us if you wish to further discuss how we can assist you to generate revenue and a real business return from your technology. We provide an initial consultation free of charge.

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• Jonathan White