Biologique recherche products developed by an independent research organization that is free from any form of patents. The organization has exclusive rights to the discovery and licensing associated with the intellectual property involved. The product acquires such rights at the time of the license agreement between the researcher and the licensing firm. This article will highlight the benefits associated with securing an exclusive license for the research product.
The organic market is estimated to be worth more than one billion dollars in the upcoming years. As the demand for healthy and nutritious food increases, the profitability of this industry is expected to cross over six hundred billion dollars in the next ten years. However, this revenue stream is a product that is very difficult to secure. Only a few companies are able to obtain the necessary funding to invest in research products. Apart from this, there are numerous factors that inhibit investment in this business.
An exclusive license to these types of products business can increase the researcher’s investment and revenue by anywhere up to several times. With an exclusive license, the researcher is only required to share a fraction of his revenue with the acquiring firm. This means that the researcher is able to develop and produce high quality, and efficient cell line based products that are capable of competing on the high end of the food and drug market. Moreover, he does not have to share the revenue with other companies developing similar products that are already available in the market.
There are several other advantages associated with acquiring research products. For example, if the products developed are able to bring about significant changes to the gross margin, the researchers will experience significant amounts of savings as compared to the costs involved in developing the same products. The acquisition also allows the researcher to reduce the total cost of production by investing on the necessary infrastructure and tools needed for production. Finally, the firms that acquire these exclusive rights to the rights of the discovery, and subsequent research and development, greatly reduce their risk and can thus affordably invest more revenues into the business. However, it should be noted that this type of acquisition requires the company to perform substantially more due diligence than normal.
In contrast, an ordinary license is normally associated with lower risks and much lower investment costs. Moreover, the benefits associated with these licenses allow for an immediate influx of cash into the business while helping to preserve or increase gross margin. As a result of these benefits, the research firm is then able to realize higher revenues immediately by leveraging its excess funds and generating high gross margin profits sooner rather than later. Ultimately, an ordinary license may actually help the business to generate additional revenues in the future by alleviating immediate cash requirements.
If you would like to know more about the benefits of licensing your discovery, discuss your ideas with an attorney who specializes in Intellectual Property Law. He or she will be able to provide you with accurate and useful information about the pros and cons of licensing your discovery. Generally, the license agreement details which portions of your discovery are available for licensing. For example, if your product is considered a breakthrough, there may be opportunities for the licensee to use the discovery in substantially more products, which could potentially translate into significantly higher revenues for the company. The details regarding license agreements typically vary by country and should be reviewed with a legal professional from a firm specializing in Intellectual Property Law.