External Licensing and Assignment of IP

The patent in question covers a class of biocides that are being marketed by Company A. Company B approaches Company A, the owner of the patent, in order to seek a licence to make and sell a compound, the structure of which is dominated by this patent. The decision to grant a licence is a purely commercial one. In this case the financial benefits to Company A are seen to outweigh the disadvantages. A licence is granted to Company B in return for 5% of the net sales income for the remaining lifetime of the patent. 

The accidental discovery of products or processes by R D that are outside the core competencies of the company does happen. Often this is when it is least expected and exploitation on a reasonable time frame is impossible because it was unplanned. In these cases the assignment of a patent to another company much better equipped to develop the invention is a good option. 

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