Acquisition and licensing of intellectual property

• Published in: Managerial law Vol. 40; no. 6; pp. 5 - 15
• Main Author: Apke, Thomas M
• Format: Journal Article
• Language: English
• Published: MCB UP Ltd 01.01.1998
• Subjects: Legal matters; Licensing; Technology transfer; Licensing; Legal matters; Technology transfer
• ISSN: 0309-0558; 1758-8014
• DOI: 10.1108/03090559810770097

Explores the issue of global licensing of technological advancement. Deals particularly with the legal side of things, minimizing risk in particular. Indicates that the fastest and best way of penetrating foreign markets is to use a local branch already established in the foreign market, or, alternatively, establish a subsidiary or joint venture. Focuses then on licensing and some of the problems that can arise from that - piracy, exploitation, competition and financial implications if things go wrong. Suggests ways to circumvent this through licensing agreements, patents, trademarks, copyright, technology transfer agreements, and or national intellectual property laws. Defines a licensing agreement, covering the subject matter of the license, technical assistance provisions, specification of the scope of the license, royalty compensation, quality standards and warranties, infringement of licensed rights, and duration and termination of the agreement. Mentions, also, antitrust considerations and the tax aspects of licensing. Recommends this approach as it spells out terms and conditions clearly to all parties, thereby, hopefully, reducing misunderstanding and disputes.