Licensing: A Two-Way Street

Licensing technology has long been established a viable means for helping both parties of such an agreement improve their technology bases. The licensor/licensee relationship must be close and interactive to optimize these improvements. The importance of the selection process of potential licensees as well as the structuring of how the technology is transferred are key items for the success of license agreements. Future licensing activities may require tighter controls on technology transfers to protect against the creation of new competitors.