IP Valuation at Research Institutes:An Essential Tool for Technology Transfer

Technology Transfer Routes

Licensing and Joint Exploitation

The licensing out of a technology to industry or enterprise partners is an exploitation option commonly used by research institutes. Entering into joint exploitation schemes such as IP pools or cross-licensing agreements is also a possibility, and these options are increasingly used in "open innovation" scenarios. Licensing, depending on the terms and conditions, can result in income for the owner of the IP in the form of periodical royalty and milestone payments. Specifying the exclusivity, territory, permitted uses and the timeframe of licences can lead to a myriad of possible licence combinations with many different partners, producing many independent income streams. Achieving successful utilisation through this route requires knowledge of the technology value. Often, the calculation of license terms such as minimum royalties, lump sum payments and royalty rates are linked to the income (or cost savings) attributed directly to the IP being licensed.