Figure 13.1. International trade in the results of intellectual labour

Licence Trade. Trade in licences is a widespread financial practice:

• net (clear) patent licences without know-how

• patent licences with know-how

• patent licences with the prompt transfer of know-how.

The owner of a licence (grantor of a licence) when selling an invention is able to reserve by law

The right to use a licence object and sell similar licences to other individuals or legal entities (businesses

— holders of licences). It is an accepted practice to give exclusive rights to a holder of a licence

While a grantor of a licence cannot use the object of a licence.

Trade in licences is realized on the basis of a contract (licence agreement). One should bear in

Mind that time is the limiting factor for a patent. In the US it is 17 years, in Britain it is 16 years.

The licence price is determined by many factors: the size of the profit, the costs involved in making

New technologies, the expenses on mastering the production of technical novelties, potential expenses

On the independent development of a project, etc.

There are two kinds of calculation for purchased licences for inventions or know-how:

a) [licence] royalties which are periodic payments from the profit gained by a purchaser during