Patent ID: 7685039

Claim:
A method for transferring intellectual property (IP) between competing parties, wherein the parties include a manufacturer of products and a licensor of the IP, comprising: generating a license agreement between the parties that includes a royalty rate, a mark-up rate, and a target division of manufactured products that include the IP; determining the royalty rate as a first percentage of a cost of a component material of the manufactured products using a computer system; determining the mark-up rate as a second percentage of the cost of the component material of the manufactured products using the computer system; selecting a target net material cost using the computer system, wherein the net material cost is on a per-unit basis; determining the target division of the manufactured products as a split of the products between the parties that results in the target net material cost using the computer system; and dividing the manufactured products between the manufacturer and the licensor in accordance with the target division, wherein the target division includes a demand division based on demand for the manufactured products, target net material cost.