Biotech Licences — Sublicensing Revenue Considerations

Biotech licences are very often lengthy contracts running to 30, 50, 70 or more pages. This reflects the fact that the licences are usually long-term, worldwide and exclusive arrangements involving products of strategic importance to at least one of the parties.

Many topics must be covered in the contract for it to effectively form the basis of the parties' relationship. Two of the most important topics are the licence grant and the royalties. The parties are well-served to devote their maximum attention and thought to these clauses, since they will in large measure decide whether the parties receive the benefits they expect from the relationship.