Creating Profit Through Alliances - business models for collaboration E-book | Page 81

John Cöhrs explains the success of the alliance: “Both parties have been extremely open to each other about their own interests, and therefore we could work out the right solutions. Stepstone has other products that compete with Raet, and in some cases we have the same customers. Even then we can agree on the right course of action.” Technology licensing technology is granted exclusively to one party only, possibly paired with knowledge transfer and further support, it becomes more like a real form of collaboration. Technology licensing occurs particularly in the pharmaceutical industry. There are basically two settlement methods available:   Licensing in general means to share the right to use a brand, software program, artwork or technology that is protected by intellectual property rights. In most cases, payment is due according to the extent of use, rather than as a one-off transaction. Technology licensing, in its simplest form, is more of a purchase-sale transaction with a variable payment model (just as you pay for the mileage of your lease car) than an alliance. However, as soon as the A one-off or periodical compensation for making the technology available, enabling unlimited use within a specific context, for instance within one company. A compensation according to usage, for instance a fixed sum for each product that incorporates the technology. This compensation may be tied to an absolute minimum, an absolute maximum, may vary with the volume. If a party provides its own technology exclusively in return for compensation, it will want assurances that the technology will also be marketed. This so-called 'shelf clause' is discussed further in Chapter 5. It is also important to make arrangement for the transfer of knowledge and further development support. This generally pertains to the deployment of personnel, which can be settled on the basis of working time. 79