Technology transfer is a general denomination of transfer of information, knowledge, know-how and industrial property related to certain technology, which typically takes place between two subjects for the purpose of enabling exploitation of the IP, research and development of particular products or services. There are various means of technology transfer; the most common ones are licensing, collaborative research and development, transfer of know-how, assignment of ownership rights to industrial property, etc.

Commercialization is a process when technologies and industrial property rights related thereto are commercially exploited, gain market value and generate income such exploitation.

License is one of the most common means of technology transfer and commercialization. In a license agreement, the owner (licensor) of an industrial property right (e.g. a patent) grants to his contractual partner (licensee) the authorization to exploit the right within the agreed term, territory and field, while the ownership rights remain with the licensor. In consideration for such grant, the licensee pays to the licensor royalty payments, which may consist of a fixed price, a percentage of gross or net revenues derived from the exploitation of the licensed right, other asset value, or a combination thereof.

Determining the best protection and commercialization strategy of your industrial property is an important process, which will influence future technological as well as commercial success. There is not one strategy that would fit all the cases; on the contrary, strategies differ based on the circumstances of each particular case. For certain inventions, it is advisable to choose a wide coverage of patent protection and then license out the rights to the patents, while in other cases it is more favorable to keep the invention confidential and transfer it in a one-off know-how transfer transaction. Therefore, it is necessary to always take into account all relevant circumstances of the particular case, character of the technology, situation on the market, potential competitors, expected technological development in the field, necessity of further research and development, expected costs of product development, etc.

Once ownership rights to industrial property arise to various parties, it is advisable for them to settle their mutual rights and obligations in relation to their joint property, in order to ensure that the parties protect and exploit the right consistently and that any such actions are not detrimental to any of the parties.