LICENSOR MOTIVATION
- Profits
- Sales of products, services, equipment
- Technology access
- Market access, strength, capital requirements
- Dispute settlement
- Rights to future technology
- Product adaptation⁄ adoption to a local market
- Fields of use outside the licensor’s normal purview
- Avoid waste of by-product technology
- Avoid antitrust⁄anti-competition or trade regulation problems
LICENSEE MOTIVATION
- Rights to technology
- Supplement the licensee’s R&D
- Access to technical help
- Benefit from licensor's reputation
- Quick entry without cost and technology risks
- Access to the licensor’s facilities
FOREIGN LICENSING
- Tariff regulations
- Taxes
- Potential nationalization
- Political instability
- Capital to start foreign production
- Foreign patent laws
- Availability of materials and staff
- Quick return to licensor
- Access to⁄acceptance with foreign markets