8.2 Technology Licensing and Transfer

Technology licensing and transfer are crucial for turning ideas into real-world products. Companies can use others' intellectual property through licensing agreements, paying royalties or fees. This process helps spread innovation and creates new revenue streams for inventors.

The technology transfer process moves scientific discoveries from labs to the market. It involves valuing technologies, conducting due diligence, and assessing readiness levels. This helps businesses and investors make smart decisions about which innovations to pursue and commercialize.

Licensing Agreements

Types of Licensing Agreements

Top images from around the web for Types of Licensing Agreements

• 

  Technology Transfer as a Mechanism of Strategic Innovative Development of Enterprises View original

  Is this image relevant?

• 

  Open Licensing - Essential skills for reproducible research computing View original

  Is this image relevant?

• 

  Technology Transfer as a Mechanism of Strategic Innovative Development of Enterprises View original

  Is this image relevant?

• 

  Open Licensing - Essential skills for reproducible research computing View original

  Is this image relevant?

1 of 2

Top images from around the web for Types of Licensing Agreements

• 

  Technology Transfer as a Mechanism of Strategic Innovative Development of Enterprises View original

  Is this image relevant?

• 

  Open Licensing - Essential skills for reproducible research computing View original

  Is this image relevant?

• 

  Technology Transfer as a Mechanism of Strategic Innovative Development of Enterprises View original

  Is this image relevant?

• 

  Open Licensing - Essential skills for reproducible research computing View original

  Is this image relevant?

1 of 2

• Licensing Agreement: A contract that grants rights to another party to use, modify, or resell intellectual property (patents, trademarks, copyrights) in exchange for compensation, typically in the form of royalties or fees
• Exclusive License: Grants the licensee the sole right to use the intellectual property, preventing the licensor and other parties from using or licensing the technology (pharmaceutical industry)
• Non-exclusive License: Allows the licensor to grant licenses to multiple parties, enabling widespread use and adoption of the technology (software industry)

Financial Considerations in Licensing

• Royalties: Payments made by the licensee to the licensor based on a percentage of sales or a fixed amount per unit sold, providing ongoing revenue to the licensor (music industry)
  • Royalty rates can vary depending on factors such as the industry, market potential, and stage of development
  • Royalties incentivize licensors to continue investing in research and development to improve the licensed technology
• Cross-licensing: An agreement between two or more parties to license intellectual property to each other, often used to resolve patent disputes or to enable companies to access a broader range of technologies (smartphone industry)
  • Cross-licensing can help companies avoid costly patent infringement lawsuits and foster innovation by sharing knowledge and expertise

Technology Transfer Process

Key Steps in Technology Transfer

• Technology Transfer: The process of transferring scientific findings, knowledge, or innovations from one organization to another for further development and commercialization
  • Involves the movement of technology from research institutions (universities, government labs) to the private sector (startups, established companies)
  • Enables the translation of research into practical applications and products that benefit society (medical devices, clean energy technologies)
• Technology Valuation: The process of determining the economic value of a technology based on factors such as market potential, development costs, and intellectual property protection
  • Valuation methods include cost-based, market-based, and income-based approaches (discounted cash flow analysis)
  • Accurate valuation is crucial for setting appropriate licensing fees and royalty rates, and for attracting investors

Due Diligence and Technology Readiness Assessment

• Due Diligence: A comprehensive investigation and evaluation of a technology's technical, legal, and commercial aspects before entering into a licensing agreement or investment
  • Involves assessing the technology's novelty, feasibility, and market potential, as well as reviewing intellectual property rights and identifying potential risks (patent searches, freedom-to-operate analyses)
  • Helps licensees and investors make informed decisions and mitigate risks associated with technology transfer
• Technology Readiness Level (TRL): A scale used to assess the maturity of a technology, ranging from basic research (TRL 1) to full-scale deployment (TRL 9)
  • TRL provides a common language for describing the stage of development and helps in setting expectations and milestones for technology transfer
  • Higher TRL technologies (TRL 6-9) are generally more attractive to licensees and investors, as they have reduced technical risk and are closer to commercialization (prototype testing, pilot-scale demonstrations)