Granting temporary, exclusive rights to use intangible assets like patents, trademarks, copyrights, and trade secrets, allows businesses to monetize their innovations without permanently transferring ownership. For example, a software company might grant a limited license for a specific algorithm, enabling another business to incorporate it into their product for a defined period.
This practice offers significant advantages for both licensors and licensees. Licensors can generate revenue streams from existing assets, incentivizing further innovation and development. Licensees, in turn, gain access to valuable technologies and creative works, potentially enhancing their market competitiveness without the burden of outright purchase. This form of rights management has become increasingly prevalent in the modern knowledge-based economy, facilitating collaboration and the widespread dissemination of innovation.
