In the traditional field, the license agreement involves the transfer of a technology or knowledge of the license to the license lake. In reality, the content of the agreement is often more complete, because the licensor also makes available to the latter all the skills and information necessary for the use of a given patent. The most frequent forms of the licence agreement concern: a particular manufacturing process or product; a trademark or the name of a product; manufacturing techniques and technologies; components, special ingredients, raw materials; technical assistance; business and marketing advice; Staff training. The essential feature of the license agreement is the originality of this form, which must be such that it can be patented or negotiated in the form of a license. In addition, the license agreement is usually a long-term contract: the licensor does not consider the grant of intellectual property as a mere economic transaction, but seeks to establish with the licensee a relationship of prolonged cooperation. While, on the one hand, licensing makes it possible to enter new markets quickly without entry fees, on the other hand, it requires the company to have considerable research and development dynamics and a constant focus on innovation. By granting the licences, the company disseminates its know-how and therefore risks seeing the licensee acquire knowledge that turns into competitors when the contract expires. Therefore, if the company does not want to be contacted by the licensees, it must maintain a permanent development deficit. In addition, the licensee`s behaviour may also damage the company`s brand image or reputation if the lessee does not meet certain quality or reliability standards. Large companies that manufacture complex products, i.e.
products containing a large number of patents, tend to accumulate significant patent assets in order to acquire bargaining power that can be used in litigation with other competing companies or as a negotiating mass in cross-licensing agreements involving a reciprocal exchange of licenses in which the parties become licensees respectively. license of others. The company`s decision to enter a foreign market through the granting of a production license is based on a few strategic considerations regarding the company and its products, the characteristics of the country in which it wishes to enter and the sector in which it operates. .