top of page

Licensing & Commercialization

Intellectual Property (IP) is not only a legal right — it is a business asset. With strategic planning and execution, IP rights can be licensed, transferred, and monetized to create sustainable revenue streams. From software licensing to technology transfers and brand franchising, effective licensing and commercialization strategies help businesses extract maximum value from their creations while retaining ownership.

​

In India, licensing of IP rights such as patents, trademarks, copyrights, and designs is governed by various statutes including the Patents Act, 1970, Trade Marks Act, 1999, and Copyright Act, 1957.

What is IP Licensing?

​

Licensing is the legal authorization given by the IP owner (licensor) to another party (licensee) to use the intellectual property under agreed terms and conditions, usually in exchange for royalty payments or license fees. It allows the owner to:

  • Expand market presence

  • Generate passive income streams

  • Collaborate across geographies or industries

  • Retain ownership while sharing usage rights

​

​

Types of Licensing & IP Commercialization Agreements

 

Patent Licensing

Common in pharmaceuticals, engineering, and tech industries. Allows licensees to manufacture or use a patented invention under agreed terms. Includes:

  • Exclusive and non-exclusive licenses

  • Field and territory limitations

  • Royalty calculations and milestones

 

Trademark Licensing

Allows third parties to use a registered mark (brand name, logo, tagline) while maintaining brand standards. Useful in franchising, white-label products, and merchandising.

  • Quality control clauses are critical

  • Brand usage guidelines help avoid dilution

 

Copyright Licensing

Used for software, media, content, music, designs, and publications. May include:

  • SaaS agreements and end-user license agreements (EULAs)

  • Publishing and broadcasting rights

  • Royalty management systems

 

Technology Transfer Agreements

Used in R&D collaborations, joint ventures, and academic-industry partnerships. Transfers proprietary know-how, processes, or trade secrets, often with post-transfer technical assistance.

 

Franchising & Merchandising Contracts

Expands business through the use of IP assets. Combines trademark licensing, operational know-how, and brand strategy into a single commercial framework.

​

​

Key Clauses in Licensing Agreements

​

  • Scope of license (exclusive, sole, or non-exclusive)

  • Territorial and duration limits

  • Royalties and revenue-sharing models

  • Moral rights and IP ownership

  • Termination and breach consequences

  • Dispute resolution and governing law

​

​

Benefits of Licensing & IP Monetization

​

  • Enables market expansion without capital investment

  • Provides recurring revenue streams from R&D

  • Facilitates entry into new sectors or geographies

  • Enhances valuation for startups and IP-rich companies

  • Attracts investors and partners through strong IP portfolios

​​

​

Regulatory Frameworks & International Considerations

​

  • Patents Act, 1970

  • Trade Marks Act, 1999

  • Copyright Act, 1957

  • Designs Act, 2000

  • FEMA Regulations for cross-border royalty payments

  • WIPO Licensing Guidelines & TRIPS Compliance

​

Licensing IP across borders may involve transfer pricing, tax structuring, and jurisdictional considerations under Bilateral IP treaties and WIPO-administered agreements.

​

​

bottom of page