A licence is a permit that you, as the owner of the IPR, grant to another party under a licence agreement. A licence agreement is therefore an agreement regarding the right to utilise a patent, trademark, copyright or other equivalent right, in return for payment.
Licensee: The party that pays for use of the invention.
Licensor: The party that grants permission for use of the invention.
Licence agreements describe the rights and responsibilities in connection with the use and exploitation of IPR. A licence agreement can be exclusive (one licensee) or non-exclusive (several licensees) with licensors.
How long does it take to locate a potential licensee?
It can take months and sometimes several years to find a licensee. This depends on
- the development stage of the invention – how far away are we from a product or service?
- competing technologies
- the size and intensity of the market
- the number and type of participants in the market
How do we locate a licensee?
Business development advisers use networks and strategies to identify potential licensees and investors for your invention – including investigating the market, other complementary technologies and participants in a given market.
We can also identify licensees through existing relationships, where we attempt to broaden the relationship by participating in conferences, networking meetings and events. The network is not only relevant in a licence situation, it is also relevant for assessing the potential of the invention and its commercial relevance.
What can you do in the process of locate a licensee?
Publication and presentations of your invention are often good additional marketing tools.
In addition, your own efforts also play an important role. If you play an active part, it can improve the chances of a match between your invention and a company. Your relationships in terms of research and consultants are often useful in terms of identifying potential licensees, but also competent employees in the companies.
We usually achieve the best results when the researcher and business development adviser work together to market the invention and "sell" the research environment it comes from.
Negotiating a licence
Once a company’s interest has been identified and established, the negotiation process begins. The negotiation process can last from weeks to months and always involves SDU RIOs business developers and lawyers.
During the negotiation process, the contact between the potential licensee and the researcher varies. Some have infrequent and informal contact, while others enjoy a more formal consultative collaboration.
If you have any questions, please feel free to contact the business developers at SDU RIO.