ABSTRACT
Licensing of products, services, and technologies is the assignment by the licensor to the licensee the rights to produce and sell goods and services, apply a brand name or trademark, or use the licensor’s patented technology. Licensing is governed by agreements that are legal contracts between the licensor and the licensee that cover a wide range of business arrangements and define the rights and obligations of the parties. Licensing agreements are important strategic decisions, and in today’s highly competitive environment, they are a part of the growth strategy of many large companies. For example, in the US pharmaceutical industry, licensing is necessary to ensure revenue and profit growth, and today almost half of large pharmaceutical company revenue is derived from licensed drugs. In the technology sector, licensing is a business strategy that generates substantial revenues and, to enhance profitability, expertise has been developed to manage it from the idea to qualification to incubation to commercialization down to licensing.
