Abstract
An intellectual property licence grants a licensee rights to use intellectual property (IP) owned by others. The licensee is granted an exchange for a royalty or other financial or non-financial consideration. Licensing enables an intellectual property (IP) owner to commercialize an invention more widely by accessing complementary capabilities of other firms to bring it to market. Licensing can expand the use of an invention and the earnings of the owner, increasing incentives for innovation and speed diffusion. The consideration received for a licence depends on the commercial usefulness of the invention as well as on the strength of the appropriability regime. Licensing carries risks and unless used carefully may not be as profitable as in-house commercialization where that is feasible.
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Grindley, P. (2018). Licensing. In: Augier, M., Teece, D.J. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-00772-8_775
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DOI: https://doi.org/10.1057/978-1-137-00772-8_775
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