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Licensing

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The Palgrave Encyclopedia of Strategic Management

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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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Authors and Affiliations

  1. Berkeley Research Group, 90 Long Acre, Covent Garden, London, WC2E 9RZ, UK

    Peter Grindley

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  1. Peter Grindley
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Correspondence to Peter Grindley .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

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© 2016 The Author(s)

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Grindley, P. (2016). Licensing. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_775-1

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  • DOI: https://doi.org/10.1057/978-1-349-94848-2_775-1

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  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

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