What financial terms are included in a license agreement?
It normally depends on the nature of the license. Every license deal is unique in that it addresses a specific technology that will be used by a company that will value and use the technology for their purposes. Normally exclusive licenses return a higher value for the purposes of licensing than nonexclusive licenses, but the benefits are then monopolized by the one company. There are basic considerations made by the licensor (university) to the licensee (company) : reimbursement of patent expenses, licensing fees, equity, and royalties based on product sales incorporating the licensed technology.
