Detalle
Detalle
Detalle
Series on Intellectual Property Issues: Part 34 as a source of revenue. This dependence is even greater in an exclusive licence where an ineffective licensee can mean no royalty revenue for the licensor. Contractual provisions for minimum royalties and other terms can guard against this, but it is still a concern. A licence agreement can be disadvantageous when the product or technology is not clearly defined or is not complete. In such a case the licensor may be expected to continue development work at great expense to satisfy the licensee. Advantages of licensing for the licensee There are various ways in which a licence agreement can give the licensee the possibility of increasing revenues and profits, and of enlarging market share: There is often a rush to bring new products onto the market. A licence agreement that gives access to technologies which are already established or readily available can make it possible for an enterprise to reach the market faster. Small companies may not have the resources to conduct the research and development necessary to provide new or superior products. A licence agreement can give an enterprise access to technical advances that would otherwise be difficult for it to obtain. A licence can also be necessary for the maintenance and development of a market position that is already well established but is threatened by a new design or new production methods. The costs entailed in following events and trends can be daunting, and quick access to a new technology through a licence agreement may be the best way to overcome this problem. There may also be licensing-in opportunities which, when paired with the companys current technology portfolio, can create new products, services and market opportunities. Disadvantages of licensing for the licensee The licensee may have made a financial commitment for a technology that is not ready to be commercially exploited, or that must be modified to meet the licensees business needs. An IP licence may add a layer of expense to a product that is not supported by the market for that product. It is fine to add new technology, but only if it comes at a cost that the market will bear in terms of the price that can be charged. Multiple technologies added to a product can result in a technology-rich product that is too expensive to bring to market. Licensing may create technology dependence on the supplier, who could choose to not renew a licence agreement, to negotiate licence agreements with competitors, to limit the markets in which you may use the licensed technology or to limit the acts of exploitation allowed under the licensing agreement.. The licensing of IP may run into problems for both licensor and licensee if government regulatory agencies consider it to be anti-competitive or collusive in nature. And of course licences are complex and, if all material terms are not carefully studied and reviewed by legal counsel, can be damaging. With advance preparation and legal advice, however, IP licences become an essential business tool that can benefit both parties.
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