There are certainly benefits to licensing your company`s assets, but be sure to consider these factors when creating a license agreement: Are you considering licensing something you own, but aren`t sure about the different types of licensing agreements? There are several ways to obtain an intellectual property (or “IP”). To do this, you must first understand the different types of license agreements. You can license the right to make a product from a patent you own, or give someone the right to use one of your trade secrets, as a process your company has developed. In the early 2000s, a growing number of technology companies began launching intellectual property (IP) licensing programs to turn dormant projects into revenue, enter new markets, and evaluate potential business partners. These companies carried out inventories of their knowledge bases and patent families and identified technologies that were not part of their core business, but still offered some potential for development. They then tried to license these technologies to other companies. To protect yourself and your business, it`s important to be thorough when creating a license agreement. Both the licensee and the licensor must have a clear understanding of what they are accepting. Consider the following tips before you begin: The term “permit” has two meanings — one in general terms (e.B. a driver`s license) and the other in business and commerce. A license in the most general sense is “an authorization from an authority to own or use something.” According to Robert C.
Megantz in How to License Technology, alternative licensing strategies include forming a joint venture, acquiring a company with the necessary expertise, developing internal capabilities to perform all licensed functions, and the ability for another company to purchase and manage intellectual property rights. Each of these methods carries different risks and potential returns for the company. As with music, software poses particular problems for copyright holders. By nature, it is easy to duplicate, but unlike music, software is not usually used in places accessible to the general public. This poses enormous challenges for software copyright enforcement, as so-called pirated software applications are thought to account for between 10 and 40 percent of the software installed on a typical business computer. The problem is perhaps more prevalent in the consumer market. Licenses are growing as manufacturers and retailers expand their core businesses and modify their strategies to include more licenses. .