The third of the licensing management practice's thought leadership studies was released in June 2007. The first study, entitled, "2005 Technology marketplace study" looked primarily at large-cap technology companies. The second report, "2006 Licensing competitiveness study" looked at smaller to mid-size companies in the areas of technology, entertainment & media, and biotechnology. This current report "2007 Technology licensing marketplace study" revisits technology licensing trends. As technology has moved to the heart of most business processes, an increasing number of industries are suffering the effects of licensing non-compliance. This growth puts even more companies at risk of losing millions in earnings and potentially billions in market capitalization to unlicensed technology.
The five trends discussed in the report are:
- Consensus estimates seriously miscalculate the impact of licensing revenue leakage.
- Licensing leakage represents more than $25 million in lost revenue and $895 million in lost market capitalization for many companies.
- Technology licensors are most concerned about licensing revenue leakage in China and the United States.
- Regulation (Sarbanes-Oxley), changing attitudes, and new compliance tools are driving increased scrutiny of licensing compliance.
- Best practices could significantly improve the effectiveness of many licensing compliance programs in recovering lost revenue and strengthening customer relationships.
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