Key Terms for Robust Licensing

Whatever the economic climate, licences warrant careful drafting since they are generally long-lasting agreements. In the biotechnology arena they also have an important role for both licensors and licensees in demonstrating commercial progress.

For a research-based company, the signing of a licence agreement is an important validation of its technology, and it of course secures a revenue stream. For a larger company, an in-licence may bring in new technology or revitalise its product pipeline.  Key agreements are scrutinised when companies are engaged in fundraising. The particular terms are crucial in protecting both parties' investment, and uncertainties can lead to costly disputes. In difficult economic times, the fault lines may reveal themselves earlier.

This article looks at some of the key terms in licences and suggests ways to address the issues they raise.

This article first appeared in Bio-Science Law Review Volume 10 Issue 1. 

See also: Key Terms in Robust Collaborations (as published in Bio-Science Law Review Volume 10 Issue 2 )

Susie Middlemiss (partner)