How to License Technology

Licensing is a complex process that involves taking a particular idea - intellectual property - and conducting market research, finding prospects to sell or buy the property, and then negotiating a deal. For technology-driven intellectual property, it becomes more complicated because the property is often a small part of a larger product - for example, the mechanism to drive intermittent windshield wipers or standardization of computer coding into PostScript format. Many inventors and technology-driven companies depend on licensing to provide income or a crucial component of their product, but they need to understand how to make the most of such arrangements This text outlines the step-by-step process for developing and implementing effective technology licensing programs. In practical, down-to-earth terms, it covers: marketing - conducting both market research and marketing technology; licensing strategies; deal-making - the terms of the agreement and negotiation tactics; and managing the ongoing relationship between licensee and licenser - including quality control, maintenance, and revision of rights.