Licensing Intellectual Property Rights
Licensing intellectual property can be used to learn and use other’s technology, allow others to access technology, and create a revenue stream. For example, a food technology company may need to license proprietary manufacturing equipment from others. Conversely, a company may consider licensing its product along with a name and marketing campaign to a third party to create a larger food distribution network and generate revenue from a larger market. Finally, IP rights can be licensed or, in some cases, cross-licensed to resolve litigation.
What Is an Intellectual Property License?
An intellectual property (IP) license is a contract between two parties allowing the licensee to use at least a portion of the licensor’s intellectual property in exchange for some consideration. Some examples of what the licensor receives are: a lump sum, multiple payments, royalty stream, goods, services, a cross-license to the licensee’s IP, or combinations thereof. License payments may be tied to the...