Jorda on: The Criticality of Trade Secrets in Technology Licensing and Tech Transfer

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[A]nent the criticality of Trade Secrets in technology licensing (also in franchising), let’s be mindful that over 80% of technology licenses cover Trade Secrets or are hybrid licenses covering Patents and Trade Secrets. Furthermore, it is indisputable that licenses under Patents without access to the associated or collateral know-how are often insufficient to practice the patented technology commercially. A patent specification is often too brief and too general and discloses only embryonic or rudimentary R&D results rather than the ultimate scaled-up commercial embodiment.
I have authoritative quotations from experts about the overarching role of Trade Secrets in technology licensing. For starters, let me recite just one from Mel Jager.
“Trade Secrets are a component of almost every technology license … (and) can increase the value of a license up to three times to ten times the value of the deal if no Trade Secrets are involved.”
Thus, as a licensor you would leave money on the table, if you did not include Trade Secrets in the transaction.
Karl Jorda

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This page contains a single entry by Jon Cavicchi published on September 28, 2007 8:01 PM.

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