Strategic Licensing Out: benefits, decision-making tools, tips

Strategic Licensing Out

Benefits, Approaches, Decision-making Tools

Vadim Kotelnikov (VadiK), innopreneur coaching by example

Hello, my dear inventor!

Discover WHY and HOW – benefits and methods – of strategic licensing out

Strategic licensing out provides a powerful solution that enables technology and/or brand owners to monetize their intellectual property (IP), strengthen business model, and increase profits.

Strategic licensing out – granting rights to use intellectual property to another company – offers benefits like reducing development costs, sharing risks, and accelerating market entry.

By licensing out its technology, a company may generate revenue from its unused intellectual property assets. In addition, licensing out enables IP owners to exploit other markets by allowing the licensees to apply the existing technology to a different market.

Alternatives include in-licensing, acquiring a company, or developing the technology in-house, each with its own set of pros and cons.

Technology Commercialization: Venture Pathways

Licensing of IPR

The Role of Intellectual Property Rights (IPR)

Additional Benefits

In addition to revenue generation, strategic licensing out offers benefits like expansion opportunities, and potential for partnerships. It also allows for avoiding production costs and associated risks. Licensees can enhance their advertising and make improvements to the licensed product or technology.

Risks

A key consideration is the potential risk of giving away too much, too early, or for insufficient compensation. InnoBall entrepreneurial simulation games helps reduce these and other business risks.

Model Agreements

Sample Exclusive License Agreement

Sample Option to License Agreement

Terms of the License Agreement

Sample Material Transfer Agreement

Sample Material Transfer Agreement Questionnaire

To License Out or Not To License Out

It's crucial to carefully evaluate the terms and potential impact on long-term strategic goals when considering this approach.

80/20 Assessment

Look closely at how the licensing business will fit into the overall corporate strategy. How much will you gain and how much will you lose by licensing your technology out? The80/20 Principle will help you make a quick preliminary assessment.

Weighted Guiding Principles (WGP)
WGP will help you find out – quickly – how well licensing out is aligned with your strategic intent.

SWOT Assessment

ClassicSWOT analysis will help you assess strengths, weaknesses, opportunities, and threats associated with licensing out.

InnoBall Simulation Game

InnoBall (Innovation Brainball) entrepreneurial simulation game will help youoptimize and synergize your business and licensing out strategies.