License & Royalty

License and Royalty services involve the management and negotiation of agreements where intellectual property (IP) rights are leased out by the IP owner (licensor) to another party (licensee). In exchange for the right to use the IP, the licensee typically pays royalties to the licensor.

For example, a pharmaceutical company that holds a patent for a new drug might not have the capacity to manufacture or market the drug globally. In this case, it can license the patent to another pharmaceutical company with better distribution networks. The licensing agreement will include terms for royalty payments, which are often a percentage of the revenue generated by the drug, to be paid to the original patent holder. This arrangement allows the original inventor to monetize their IP while enabling wider access to the drug through the licensee’s production and distribution channels.