Licensing revenues are an enormously important source of revenue for U.S. technology companies, and licensing will continue to grow at a rapid pace for years to come. The US leads the world in terms of licensors controlling Intellectual Property (IP) rights. Both large and smaller technology companies are likely to partake in licensing in one form or another, and many are shifting their organizations to licensing-driven business models.
Nonetheless, without strong licensing management and compliance programs in place, the risk of revenue leakage continues to grow, particularly as licensing increases revenues in new regions of the world. Such revenue leakage is and will continue to be much larger than most companies currently believe it to be.
To date there is strikingly little public data available on the growth in licensing in the technology sector and the subsequent revenue leakage. PricewaterhouseCoopers’ 2005 Technology Licensing Marketplace Study begins the process of building empirical analysis of the worldwide technology licensing economy and the revenue leakage issues that have been triggered as a result of this growth.
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