What is Patent Licensing and Its Different Types?

Patent licensing refers to the process where a patent holder allows another party to use, make, or sell their patented invention. The license can be granted under various terms, including the duration of use, geographic scope, and rights involved. Below are the different types of patent licensing:

1. Exclusive License:
In an exclusive license, the licensee is given all rights to use the patented invention, except for the ownership title. The patent owner retains the title but has no further rights to use or license the patent. The licensee becomes the sole entity authorized to exploit the invention.

2. Non-Exclusive License:
This type of license allows the patent holder to grant usage rights to multiple parties simultaneously. Multiple licensees can commercialize the invention, creating a competitive market for the patented product or technology.

3. Sub-License:
A sub-license allows the licensee to grant usage rights to third parties. The original licensee can sublicense the patent rights, broadening the scope of usage and extending the reach of the invention.

4. Cross-Licensing:
In cross-licensing, two or more parties exchange patent licenses with each other. This type of license is commonly used in industries where products from different inventors need to integrate or work together.

5. Voluntary Licensing:
Voluntary licensing is typically used in industries like pharmaceuticals, where the patent holder allows others to manufacture or distribute a product. This type of license is granted voluntarily for public interest or in support of societal needs.

6. Compulsory Licensing:
Compulsory licensing allows a third party to use a patented invention without the consent of the patent holder. It is typically granted by governments when there is a significant public interest, such as ensuring access to essential medications.

7. Carrot Licensing:
Carrot licensing involves encouraging potential licensees to use a patented invention by demonstrating its benefits and advantages. This approach is often used to promote adoption of the technology.

8. Stick Licensing:
In stick licensing, a patent holder takes action against those already infringing on their patent. This approach may involve legal action or negotiation to secure the rights to the use of the patented invention.