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How much is it worth to obtain exploitation rights for a technology?

02 · 10 · 19 - IP News - ABG-IP

When negotiating the granting of an exploitation license, one of the points of greatest uncertainty faced by institutions and companies owning industrial and intellectual property rights, or users of other people’s technology, lies in the determination of the price to be paid to the licensor.

The most common forms of pricing are:

  • the payment of lump sums (often linked to the achievement of certain milestones),
  • the payment of a fixed amount for a product manufactured or marketed by the licensee incorporating the licensed technology,
  • the fixing of a royalty fee applicable to the turnover or to the profit made by the licensee from the exploitation of the licensed rights,
  • a combination of the modalities described in the previous paragraphs.

In the Legal Area we have tools and databases that, starting from information gathered from different sources, institutions and markets all over the world, give us access to reference values that allow us, on the one hand, to justify the price to be requested from potential licensees to whom our clients are willing to license their industrial and intellectual property rights and, on the other hand, to have comparison elements to determine whether a license offer has been formulated under market conditions, in view of its object, exclusive or non-exclusive nature, geographical scope or the technological field to which it belongs.

Based on our wide experience in negotiations of license agreements, from ABG we will be able to accompany you in the negotiation process and advise you on the royalty percentages, the payment structure and the most suitable conditions to propose to the counterpart, and thus help you to close license agreements in favorable and acceptable terms for both parties.

For further information please contact legal@abg-ip.com

 

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