The Duration of Technology Licensing

Innovators charge companies that use their technology as a form of intellectual property by employing different contracting approaches. Licensing of the innovation during the usable duration of time that the producing company benefits for the technology introduces a difficult benefit and cost appropriation concept that requires a mathematical approach. In licensing, the factors that influence the cost and time allocation for the innovation form part of the technology transfer decision, two of the main ones including fixed fees and royalties. In the determination of the actual technology transfer charge and the actual duration of the charge, certain factors such as the type of technology, the type of industry and competitive environment contribute to the consideration of the appropriate charging method.
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