Licensing

The granting of permission to use intellectual property rights, such as...

The granting of permission to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions.

See report: Licensing Terms and Agreements in Pharma, Biotech and Diagnostics

See report: Licensing Terms and Agreements in Pharma, Biotech and Diagnostics

The granting of permission to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions.

Licensing is governed by a written agreement entered into by the contractual owner of a property or activity giving permission to another to use that property or engage in an activity in relation to that property. The property involved in a licensing agreement can be real, personal or intellectual.

Almost always, there will be some consideration exchanged between the licensor and the licensee.

Consideration normally takes the form of payments such as:

  • Upfront payment - normally payable to the licensor upon signing of the licensing agreement
  • Milestone payment(s) - payable upon achievement of pre-agreed development and commercialisation stages, for example, commencement of phase II clinical trial
  • Royalty payments - payable in the form of a percentage of sales of a product covered by the patents within the scope of the licensing agreement

 

See report: Licensing Terms and Agreements in Pharma, Biotech and Diagnostics

An example of the simple licensing agreement would be: Licensing agreement for patent relating to the diagnosis of rejection in organ transplant recipients using cfDNA between Stanford University and ImmuMetrix.

An example of a more complex agreement where licensing forms part of a wider collaborative R&D agreement would be: Collaboration and licensing agreement for discovery and optimization of next-generation AAV vectors between UniQure and 4D Molecular Therapeutics.

 

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