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The Licensing Process

When a company is interested in licensing a technology , there are a number of ways in which we engage with them.

Most often, the initial stage is a technical discussion with the inventor. We recommend doing this under a Confidentiality Agreement unless the discussion is limited to only publically available information.

A Confidentiality Agreement establishes a legal record for preserving intellectual property and is generally designed to protect the confidential information of both parties. Be aware that confidentiality agreements are not perfect. Over time memories are fallible and the origin of ideas often becomes blurred.

If the company is interested in testing the technology inhouse or wants to demonstrate contractual rights to the technology to investors, we typically give them the choice of a License or an Option Agreement.

An Option Agreement is gives the company an period of time to evaluate their commercial interest in a technology. This agreement confirm a company’s intent to negotiate a license, to outline each party’s rights and responsibilities, and/or establish a company’s commitment to pay certain fees or patent costs incurred while the negotiation is underway. In some cases, it includes the financial terms of the final license if executed. At the end of the option, the company will either negotiate terms for a license or allow the option to terminate.

A License Agreement grants intellectual property and material rights to the licensee. Intellectual property rights are typically granted for a period of time through the last to expire patent. Material rights are not time limited, but usually are written for a defined period of time. Licensing may be exclusive or non-exclusive or limited by field of use or geography. You can view a summary of typical patent license terms (DOC | PDF | RTF).