The Economist recently cited a McKinsey report that found "almost 75% of executives expect to buy and sell more licenses over the next two to five years." Many CEOs now view their patent portfolios as a new and important source of revenue.

A well-managed program of out-licensing can add significantly to the company's revenues and add diversity the sources of income.

As Newton might have predicted, the force of out-licensing has been met by an equally large need for in-licensing. Those companies which earn money from patent licensing only do so other companies pay license fees.

Thus the corporate emphasis on revenue generating out-licensing creates an equal emphasis on in-licensing. A well-managed program of acquiring and negotiating needed licenses can substantially reduce costs, avoid litigation, reduce risk, and create new business opportunities.

For most high technology companies, what is needed is a mix of in-licensing and out-licensing. Patent licensing is a specialized activity requiring a diverse mix of business, technology, finance, legal, and patent knowledge, as well as hardcore negotiation skills.

Avvika AB provides both in- and out-licensing services to small- and medium-sized enterprises, individuals, and research organisations.

Contact Avvika AB to see how we can get your patent portfolio working for you, or to ask how we can help you acquire the licenses you need.

"In America alone, technology licensing revenue accounts for an estimated $45 billion annually; worldwide, the figure is around $100 billion and growing fast. [...] 54% of companies saw growth in licensing of 10-50% between 2000 and 2002. Almost 75% of executives expect to buy as well as sell more licenses over the next two to five years, and 43% expect a dramatic imcrease in their licensing revenue."

The Economist
A Survey of Patents and Technology
October 22nd-28th, 2005

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104 51 Stockholm, Sweden
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