ABSTRACT
The primary route to commercialization of intellectual property (IP) is by licence. This will usually be in the form of a partnership where originators and IP owners will exchange commercialization rights with the partner successively in exchange for finance and development and then the marketing of the product. One yardstick for understanding how much each party should receive in a licensing deal is the amount of financial risk each of the parties has or will have to bear in completing the transaction. An alternative to the licence is a joint venture where ownership of the joint activity is shared and so are the future proceeds. Joint ventures are a superficially attractive way for companies and other parties to participate in the research and development or marketing of products. Assets also take on a different perspective depending on whether one is buying or selling or indeed licensing-in versus out.
