Option 2: Licensing

The objectives of this approach are: leverage intellectual property value beyond current uses, achieve maximum value through a combination of upfront and running royalty, develop minimum annual payments, maintain right to use intellectual property, control licensee’s rights to intellectual property, and benefit from improvements made by licensee.

The concerns of using this approach are: does not achieve goal of immediate funds to intellectual property owner unless up-front payment is sizable, amount of royalty may be subject to aggressive negotiation by acquirer, risk that licensee does not achieve commercial success, and rights granted to licensee may preclude intellectual property owner from some commercialization options.