Innovation management. Types of licensing (most important)

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Innovation management. Types of licensing (most important)

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72. TYPES OF LICENSING

The word licensing in Latin means "right" or "permission". Licensing is a permission given by a licensor (legal or natural person) to a licensee (another legal or natural person) that provides the right to use patented inventions, technologies, experience, technical knowledge, production know-how in the industrial or commercial fields of its activity.

The transfer of a licensed product is carried out by securing the rights in a license agreement, an agreement that specifies the conditions for the transfer of rights. The licensor receives a profit from the license agreement without investing additional funds, thereby reimbursing the costs invested in scientific and technical developments.

There are various types of license agreements. This is due to the subject of the contract, ways to protect the licensed goods, the amount of rights transferred, the type of license.

Commercial use rights are transferred to:

1) protected invention;

2) production secrets (know-how);

3) product models;

4) industrial prototypes;

5) trademarks of products and firms;

6) IT programs, databases.

These innovations are the subject of the license. There are three types of licenses according to the nature and scope of the rights to use technologies:

1) a simple, or non-exclusive, license is the transfer of rights to the licensee and the simultaneous use of the license by the licensor himself and the issuance of similar licenses to other persons;

2) an exclusive license is the sole right of the licensee to use the licensed product in a certain territory. The licensor assigns the right to independently use and sell the license;

3) a full license is the transfer of all property rights to a license for the period of the contract.

The existence of a title of protection for a license separates patent and non-patent licenses.

There are also the following types of licenses:

1) patentless license - no title of protection. The number of these licenses increases with investment interaction and the sale of projects, prototypes of new equipment and technologies;

2) returnable license - this provides for the right of the licensor to use improvements to the subject of the license, if these changes were made by the licensee;

3) cross-license, or cross-license - is used when patent owners cannot use their rights without violating each other's rights;

4) compulsory license - is used in case of long-term non-use of patented inventions;

5) compulsory license - issued in the interests of national security by decision of the government without the consent of the patent holder on the basis of payment of compensation;

6) open license - the licensor is obliged to transfer the right to use the license to any person.

Authors: Evgrafova I.Yu., Krasnikova E.O.

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