What is technology licensing?

Technology licensing is the process where the owner of intellectual property, such as patents, software, or trade secrets, grants permission to another party to use, produce, or sell the technology under defined conditions. This arrangement typically involves a legal agreement that outlines the terms, scope, and compensation for use. Technology licensing is common in industries like pharmaceuticals, software, and engineering, enabling companies to access innovations without having to develop them independently. It can help organizations expand their market reach, accelerate product development, and generate revenue from their intellectual property.