Licensing

What's the difference between an exclusive and non-exclusive license?

The short answer

Exclusive gives one company sole rights (usually for higher royalties or upfront payments); non-exclusive lets you license the same patent to multiple companies. Non-exclusive is actually the market's largest segment — about 42% of patent licensing deals — because most markets have more than one credible player.

The full picture

Exclusive deals make sense when one partner is investing heavily — tooling up, building a product line — and needs protection to justify it. Non-exclusive deals make sense when the market is broad and no single company will pay for the whole pie; three licensees at 4% each usually beat one at 6%.

The middle grounds matter too: exclusivity can be scoped by field of use, geography, or time period, and can convert to non-exclusive if milestones aren't met. The right structure is a strategy question about your specific market — one we're glad to think through with you before you're across the table from a licensee who thinks about it professionally.

Where does your patent stand?

The Beyond the Patent Commercialization Score answers that — a professional, factor-by-factor read on your patent's licensing, sale, build, and partner potential.

Related questions

All 100 questions

General information for patent owners — not legal advice. Read the disclaimer.