License Negotiation - Center for Technology Transfer and Enterprise Creation - Carnegie Mellon University

The license phase

begins when a company confirms it is interested in licensing the technology. A license is permission to do something that one could not otherwise do; for example practice a technology covered by a patent or copyright that one does not own.  The CTTEC officer will negotiate the terms of the license and will keep you informed regarding the progress and whether the licensor requests anything out of the ordinary. Examples of license agreements are seen below:


  • Exclusive License: An exclusive license is one that states that the party granting the license will not give any other party the same rights in the same field of use (but another party may be given similar rights in a different field of use.) For example, one party may have an exclusive license to use a polymer for a car bumper but another party may have an exclusive license to use the same polymer for a toy

  • Non-Exclusive License: A non-exclusive license gives the licensee rights in a field of use, but also allows the party that grants the license to give other parties the same rights in the same field of use. For example, two different parties may be granted non-exclusive licenses to use the same polymer to make car bumpers.

You can also access an example template of our licensing agreement [pdf]