Make More Money by Sharing (Licensing)

• Author: Alexander I. Poltorak/Paul J. Lerner
• Profession: Is the founder, Chairman, and CEO of General Patent Corporation (GPC), an intellectual property (IP) firm focusing on intellectual property strategy and valuation, IP licensing, and enforcement/Is the Senior Vice President and General Counsel of General Patent Corporation (GPC)
• Pages: 83-91

C06 12/14/2010 9:30:41 Page 83

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 up on which approach or com bination of ap proaches

yields the greatest return.

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