Essentials of Intellectual Property: Law, Economics, and Strategy

By Alexander I. Poltorak; Paul J. Lerner | Go to book overview

CHAPTER 6
Make More Money by
Sharing (Licensing)
After reading this chapter you will be able to:
Understand why selling a patent is often a complex and difficult matter, making licensing an attractive alternative.
Properly manage a license once it’s signed.
Make sure you get what the licensee has agreed to pay.
Recognize the difference between a joint venture and a strategic alliance.
Understand the choice between paid up and running royalty licenses.
Understand how to increase the value of a patent or a patent license.

Introduction

The question is often (but not often enough) asked: How can we (or I, or, in one instance, at a cocktail party, a friend) make money from our intellectual property? Briefly stated, there are three ways to make money from any property: sell it, rent it, or use it. The choice depends upon which approach or combination of approaches yields the greatest return.

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