|•||Understand what licensing is, who drives the endeavor to license, and how licensing can affect a company's bottom line|
|•||Understand the pros and cons, rationale, and basics of licensing in|
|•||Understand the pros and cons, rationale, and basics of licensing out|
Licensing appeals to many corporations and can be an attractive means of generating income. To IBM, licensing means $1.7 billion in annual licensing revenue. The term carries similar weight at Stanford University, to the tune of more than $100 million in annual royalty income.
Although licensing is synonymous with revenue, to many other companies licensing means faster time to market or money saved. Whether licensing in, licensing out, or cross-licensing, licensing can create substantial profit opportunities.
The notion of licensing old or forgotten patents in a company's portfolio for significant revenue generation has been popularized in recent books and publications. Although this concept is valid, much of the advice on mining the hidden value of patents through licensing has