Impact on the VALUE OF THE LICENSE
The value of a license is shaped by a combination of factors, including the strength and uniqueness of the intellectual property, market demand, the type of license agreement, royalty structures, and potential risks. IP with strong legal protection, high commercial potential, and limited competition will generally command a higher value. Similarly, a license that grants exclusivity, provides favorable payment terms, and is tied to a well-supported, innovative product or technology can significantly increase the overall value.
Licensing deals are typically tailored to the specific situation, and each factor must be carefully considered by both the licensor and licensee to arrive at a mutually beneficial agreement.