Startup Funding Espresso What Is Licensing in Commercialization
What Is Licensing in Commercialization Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Licensing in commercialization is the right to manufacture and sell a product with the technology of another company.\xa0\xa0 In return for the right, the licensee pays a royalty fee for each unit sold. Licensing brings the following advantages to the licensee: You gain the know-how and experience of the company that created the technology. It comes at a lower cost than buying the company. There\u2019s no cost for technology development. You only pay when you sell something. It reduces your risk in the event the product doesn\u2019t sell. You can draw from other markets to benefit your target market. There are disadvantages: The license is typically for the life of the technology which can be many years. There may be a minimum licensing fee. The license may require some restrictions on its use and target market. There may be limits on further development of the technology. Licensing works well in a rapidly changing marketplace in which products are replaced quickly due to new technologies coming into the market. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _________________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .