The Four Classes of Patent Licensing

Abstract

Not all patent licensing programs are the same; their impacts on innovation and technology progress can vary widely. This essay introduces four representative (and hopefully iconic) classes: (1) Tech Transfer licensing, (2) Industry Practice licensing,; (3) Independent Invention licensing, and (4) Landmine licensing. The idyllic representation of the patent system, in which patents are directly responsible for the innovative technology progress in the public marketplace, typically fits within the Tech Transfer licensing model, whereas the widely-scorned abuse of the legal system by some patent assertion entities (PAEs) often qualifies as Landmine licensing. PAEs are defined by the U.S. Federal Trade Commission (FTC) as firms whose business model primarily focuses on purchasing and asserting patents. See [1] for comments by the FTC regarding abuses of the patent system by some PAEs.

Keywords: Four Classes Patent Licensing, Tech Transfer, Industry Practice, Independent Invention, Landmine Licensing