Licensing agreement

Licencing the invention is an effective solution when the invention's owner has insufficient resources for the invention's commercial exploitation. He or she may not wish to become an entrepreneur or cannot build a viable business alone on the basis of the invention. In addition, when seeking international partners, licencing an invention  is a workable solution. In such cases, it may prove more cost-effective to conclude licensing agreements separately in each country, for manufacture close to the point of sale.

By licensing the invention, the licensor hands over rights to the invention (usually the right of use) to the licensee  in return for compensation. The proprietary right remains with the owner i.e. the licensor.

Licences are usually granted during the patent application phase, i.e. before the patent is granted. The sooner the invention is licensed, the more influence the licensee has over e.g. the countries in which the invention is patented, and the better it can ensure that commercially important countries are covered.

See the licensing agreement checklist.