Issues in Negotiating Licensing Agreements n Rights conveyed to licensee Product and/or patent rights Compensation paid to licensor Transfer costs for technology and maintaining the agreement R&D costs for developing the technology Opportunity costs for exports or investments Methods of compensating the licensor Running royalties(percentage of sales Up-front payments, service fees Copyright 2001 by Harcourt, Inc. All rights reservedCopyright © 2001 by Harcourt, Inc. All rights reserved. 9-5 Issues in Negotiating Licensing Agreements Rights conveyed to licensee • Product and/or patent rights Compensation paid to licensor • Transfer costs for technology and maintaining the agreement • R&D costs for developing the technology • Opportunity costs for exports or investments Methods of compensating the licensor • Running royalties (percentage of sales) • Up-front payments, service fees