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L29 Who to License from
Licensees may not have a choice as to who to licence from.
Where such a choice exists, licensees should prefer to license from :
- Owners of leading edge technology
Needless to say many companies will generally prefer to licence their old generation technology rather than their latest technology which keeps them at the leading edge.
- Licensors for whom the technology represents a very minor part of their interests.
The aim should be to select a licensor who is not in, or is not interested in, adopting a strong bargaining position relative to the licensee.
- Licensors prepared to enter exclusive licensing deals at advantageous prices
Exclusivity can confer competitive advantage but this is only valuable if the price at which it is obtained translates into a good price in the licensee's markets.
- Licensors prepared to give the greatest learning opportunities
The extent of Know How, 'Show How' and support will be important factors.
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