Less than five percent of products that enter development ever reach the market, and licensees generally seek to structure arrangements that share the risk of failure with the University. Type of License A license is usually either exclusive or nonexclusive. An exclusive license grants all rights for a particular field and territory to a single licensee. The licensee is normally given rights to sublicense others to exploit the technology. The University will normally write specific development milestones into such a license agreement.
Nonexclusive licenses enable a number of companies to exploit a technology.
Nonexclusive licenses normally do not allow the licensee to sublicense and normally do not include due diligence provisions. Enabling technologies, such as assays for use in discovering new drugs, will normally be licensed nonexclusively. Coexclusive licenses are a hybrid type of license, where only a limited number of licenses will be granted. The number will normally be determined at the outset, so that potential licensees know exactly how much competition they can expect.