Under a typical End User License Agreement, the User may install the Software on a limited number of computers. [Citation required] In the United Kingdom, prisoners serving a certain sentence (a fixed period in prison) are released “under licence” before their full sentence is served. [11] The permit is the prisoner`s agreement to maintain certain conditions, such as .B. report regularly to a probation officer and live only at an approved address in exchange for early release. If they violate the terms of the license, they can be “recalled” (sent back to prison). [12] [13] Licensing with universities generally includes the following sections: From a business perspective, the licensor has almost all the power in negotiating a licensing agreement. This party owns the trademark, trademark or invention that someone else wants. The Licensor has control over the use of the innovation. Anyone who wishes to do so must accept the licensor`s terms. Another common element of licensing agreements includes which party retains control of copyrights, patents or trademarks.

Many contracts also include a provision on territorial rights or on the person who manages distribution in different parts of the country or the world. In addition to the various clauses inserted in the agreements to protect the licensor, some licensees may add their own requirements. For example, they may insist on a guarantee that the licensor owns the rights to the property, or they may include a clause prohibiting the licensor from competing directly with the licensed property in certain markets. Most license agreements include standard clauses to cover the issues that most often occur during license negotiations. These clauses are as follows: Patent licensing has been studied in formal economic models in the field of industrial organization. In particular, Katz and Shapiro (1986) investigated the optimal licensing strategy of a research lab that sells products to competing companies in the market. [15] It turns out that (compared to the welfare maximisation solution) the licensor`s incentives to develop innovations may be excessive, while the licensor`s incentives to disseminate the innovation are generally too weak. As a result, the revolutionary work of Katz and Shapiro (1986) was expanded in several directions. For example, Bhattacharya, Glazer and Sappington (1992) have taken into account that companies acquiring licences will have to make further investments in order to develop marketable products. [16] Schmitz (2002, 2007) has shown that asymmetric information due to adverse selection or moral risks can cause the research laboratory to sell more licenses than with complete information. [17] [18] Antelo and Sampayo (2017) investigated the optimal number of licenses in a signaling model. [19] For a company that has a great product but is not able to manufacture it, licensing is a great way to bring that product to market.

The entrepreneur says that among the potential opportunities to commercialize a product, licensing “offers the greatest potential return on investment and has the greatest chance of success.” Pay attention to the definitions. .