Explain how Licensing for Technology is considered.

Explain how Licensing for Technology is considered.

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Explain how Licensing for Technology is considered.

SOLUTION:

Licensing For Technology:

• By a technology licensing agreement, the licensor authorizes the licensee to use the technology under certain agreed terms and conditions.
• It is therefore, a contract freely entered into between two parties and contains terms & conditions so agreed upon.
• Through a technology licensing agreement, it is possible to improve the quality of existing product or develop and manufacture a new product by using the patents or trade secrets owned by others.
• This may also include entering into a new market or extending in the existing market for a product by acquiring the patent rights.

Example:

Tata Steel has obtained a process technology patent for making hybrid rollers used in sinter plants. This patent is now licensed to Jyoti Cero Rubber to get potential revenue over next three years. Looking at the wider market Tata Steel is licensing this technology to other competent parties.