Chapter 26

Licensing

Commercialising intellectual property

A microscope mounted on top of a miniature building, attempting to read through a chimney on its roof. Clouds of different molecular formulae seem to emanate from the eyepiece of the microscope.

The pattern

The Licensing business model deals with creating intellectual property, which is licensed by third parties. The focus is on the question of commercialising the rights (HOW?) rather than realising and capitalising on the IP. An important advantage of Licensing is that rights can generally be sold to more than one interested party. Licensing serves as a means to diversify the company’s revenues and risks (VALUE?). Moreover, since the products and services often experience higher and more rapid rates of diffusion, the brand concerned becomes more recognisable and customers ...

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