In particular, Katz and Shapiro (1986) investigated the optimal licensing strategy of a research lab that sells products to competing companies in the market.  It turns out that (compared to the welfare maximisation solution) the licensor`s incentives to develop innovations may be excessive, while the licensor`s incentives to disseminate the innovation are generally too weak. As a result, the revolutionary work of Katz and Shapiro (1986) was expanded in several directions. For example, Bhattacharya, Glazer and Sappington (1992) have taken into account that companies acquiring licences will have to make further investments in order to develop marketable products.  Schmitz (2002, 2007) has shown that asymmetric information due to adverse selection or moral risks can cause the research laboratory to sell more licenses than with complete information.   Antelo and Sampayo (2017) investigated the optimal number of licenses in a signaling model.  A licence is granted by one party to another party under an agreement between those parties. In the case of a licence issued by a government, the licence is obtained by application. In the case of a private party, this is done through a specific agreement, usually in writing (e.B. a rental agreement or another contract). The simplest definition is “A licence is a promise not to prosecute” because, with the exception of a marriage licence (which only grants official recognition of the relationship between the two persons), a licence allows the authorised party to engage in illegal and criminal activity without the licence (e.B. fishing, B.
driving a car or operating a radio or television station), or it allows the authorized party to do anything that would violate the rights of the licensor (for example. B, making copies of a copyrighted work), which, without the license, could sue the party authorized under civil, criminal or both law. There are certainly benefits to licensing for your company`s assets, but be sure to consider these factors when creating a licensing agreement: Get a lawyer who has expertise in licensing agreements. .