Patent Licensing & Commercialisation

Overview

A patent that is not commercialised is a cost, not an asset. Patent licensing — whether exclusive, non-exclusive, or sub-licensed across a distribution chain — converts protected innovation into revenue, and the legal framework governing that licence determines the value actually captured. Corpus Juris Legal advises patentees, research institutions, and technology companies on patent licensing strategy and negotiates and drafts patent licence agreements under the Patents Act 1970. Our practice covers outbound licensing by Indian innovators, inbound licensing by Indian companies acquiring foreign technology, and complex cross-licensing arrangements between competing technology companies. Royalty structure — fixed, running, milestone-based, or hybrid — and the calculation base are negotiated with reference to the economic value of the patent and market benchmarks. For Indian companies licensing technology from foreign principals, FEMA compliance on royalty payments and the RBI master direction on overseas investment are integrated into the licensing structure. Where patents are held by government-funded research institutions, the interface with the Protection and Utilisation of Public Funded Intellectual Property Act and compulsory licensing provisions under Section 84 of the Patents Act 1970 are addressed as part of the advisory.

Key Service Components

• ◆Patent licence agreement drafting — exclusive, non-exclusive, field-of-use restricted
• ◆Royalty structure negotiation and licence fee benchmarking
• ◆Technology transfer agreement drafting with know-how provisions
• ◆Cross-licensing and patent pool participation advisory
• ◆Inbound technology licence with FEMA royalty compliance
• ◆Patent commercialisation strategy — licensing vs. assignment vs. joint venture
• ◆Research institution technology transfer and spin-out advisory
• ◆Compulsory licence response and Section 84 Patents Act advisory
• ◆Patent pledge and security interest over patent rights
• ◆Sublicensing structure and sublicensee management provisions

Our Approach

We begin patent licensing mandates with a commercialisation strategy discussion — who is the right licensee, what structure maximises long-term revenue, and what controls need to be maintained to preserve patent value. The licence agreement follows from that strategic framework rather than being a starting point for commercial discussion.

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