Technology licensing business plan

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These provisions vary, depending on whether the license is for merchandising an entertainment property, exploiting a given technology, or distributing a particular product to an original equipment manufacturer OEM or value-added reseller VAR. A wide variety of special contractual issues must be addressed in preparing a technology license agreement, starting with the definition of certain terms. This initial section of the agreement is intended to do much more than make the document easier to read. It defines some of the key aspects of the relationship with respect to the specific field of the technology licensed, the territory to be covered, the milestones and objectives that must be met, the specific patents or trademarks that will be included within the scope of the license and the nature of the compensation to be paid to the licensor. Reports and Record Keeping.
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Understanding the Licensing Business Model

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Technology Licensing II: Key Elements of an Agreement

With successful licensing agreements the goal of both tech transfer offices and tech scouting teams, how are these deals successfully negotiated? While many open innovation platforms focus on finding the technology, not enough focus is given to how to acquire the technology in question. As such, here are a few basics on licensing. While licensing is a complex means of exploiting intellectual property, the beginnings of any licensing agreement is understanding the reason behind why a technology is licensed. Intellectual property IP can be used both defensively and aggressively, usually in response to market pressures to frustrate competitors, maintain market share, control access, and to protect products from assault by competing firms.
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Licensing as a revenue model for technology products

A technology license is essentially an agreement between the licensor the owner of technology and the licensee the party that wants to use that technology , in which the licensee gets the right to use the technology and the licensor gets something of value in return. Technology licensing only occurs when one of the parties owns intellectual property, which gives that party the legal right to prevent others from using it, and so a technology license can be viewed as a consent by the owner to use the IP in exchange for something of value. Although the key terms of a technology license agreement vary depending on what sort of technology is being licensed, similar issues arise in all transactions in which technology containing intellectual property rights is being licensed. This Part I of a two part series on technology license agreements will cover non-financial terms. Part II will cover financial terms.
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A revenue model is a framework for generating financial income. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. Without a clear and well-defined revenue model, with a clear plan of how to generate revenues, new businesses will more likely struggle due to costs which they will not be able to sustain. By having a clear revenue model, a business can focus on a target audience , fund development plans for a product or service, establish marketing plans, begin a line of credit and raise capital. The type of revenue model that is available to a firm depends, in large part, on the activities the firm performs, and how it charges for those.
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