Why is it not feasible to select licensees through a competitive bidding process?
Most university-developed technology is “sold” rather than “bought”. This means that considerable investment is required to present, persuade, and tailor specific arrangements to the needs of the licensee. Usually, the task is to find at least one capable and interested company, rather than choosing among several candidates. It is generally impossible to bring the interest of several prospects to a head at the same time, as would be required for a meaningful competitive bidding process. Also, tailoring to special industry needs makes the competitive bidding useless. Yet, such tailoring is especially necessary in the case of small business firms to which universities are required to give preference for technology developed with federal funding. Additionally, many universities are unable to afford the full expense of the patent application process. They therefore seek prospective licensees to cover such patenting expenses as part of a license agreement. The confidentiality required to pr
