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An inventor may not have the resources to commercialize an invention. By allowing others to practice under a patent through the use of a license, however, the inventor may allow such inventions to be commercialized, leading to beneficial uses for the public.

The desire of others to practice within certain areas of technology and the licensing of such technology are instrumental in allowing the commercialization of inventions that otherwise might never become available to the public.

Different licenses include the following:

• Royalty-Bearing License - A license that contains terms stating that a licensee agrees to pay the patent owner in incremental payments typically proportioned in some way to the extent of use or revenue the licensee derives from the licensed product.
• Exclusive License - A license that grants the licensee sole right to practice under the patent. However, the exclusive license can be subject to the patent owner's rights or the rights of prior licensees.
• Nonexclusive License - A license that permits more than one licensee to practice under the patented technology.
• Cross-License - When two separately owned patents are required to make, use or sell a product, and both patent owners desire to make, use or sell the product, they each may grant a license to the other, which is referred to as a cross-license.
• Reach-Through License Agreement - An arrangement requiring the payment of a royalty for the sale of a product developed or manufactured through the use of licensed technology.

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