The complexities of territorial licensing

Companies in the biotech and pharmaceutical industry are well known for developing and implementing innovative deal structures in order to realise the maximum value from their assets and to get products to market. One of those innovative deal structures is geographical licensing. While apparently simple on the face of it, the devil is in the detail.

Geographical licensing is the practice where the owner of the rights to a product grants to a licensee the exclusive right to develop and/or commercialise the product in a specific country or territory only. The licensor may grant a separate licence to several different licensees, each in a distinct country or territory. The licensor may, or may not, reserve for itself the right to develop and commercialise the product in a particular country or territory.

The complexities of this deal structure arise from the fact that there needs to be a degree of either centralised control or decentralised co-ordination in relation to a number of matters — particularly regulatory compliance and intellectual property management. Such centralised control or decentralised co-ordination needs to be acceptable to all parties involved, not all of whom may be known or identified at the time of entering into the first licence. Clearly, the complexities increase as the number of licensees increases. The deal may be further complicated if, prior to commercialisation, the licensor works with one or more of the licensees to undertake development work to get the product to market…

Click on the link below to read the rest of the Taylor Wessing briefing.

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • merger deal

    Corporate crunch time: who will triumph at The Lawyer Awards 2014?

    As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014. 

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 228.00
No. of lawyers: 860
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 67 (International 50)

Jobs