What is Patent Licensing?
Licensing is a process where the owner of the product gives
permission to another entity who can extract benefit from the
licensed product. Same as that licensing a patent means the owner
is giving access to another individual or organisation to make, use
and sell etc. with his patented invention. Usually license
agreement comes with some terms and condition agreed by the
parties, which have binding effect on them. Few of the content of
the agreement consists of definition of the product, mode of the
payment between parties, purpose of the license and many
more.1
Why Patent Licensing is being done and how it differs from
Patent Transfer?
A patent owner can license his invention for many reasons, such
as, he may not have enough money to or manufacturing facilities, so
he gives license to third party to make, sell and distribute his
patented invention in return of 'royalty'. Alternatively,
the owner of the patented invention may have a
