BioHealth Inc., a biotechnology startup, owns a patent on a…
BioHealth Inc., a biotechnology startup, owns a patent on a novel drug delivery system. To expand its market reach without investing heavily in manufacturing and distribution, BioHealth considers licensing the patent to a large pharmaceutical company, PharmaPlus. The proposed license agreement includes terms on royalties, exclusivity, sublicensing rights, and quality control standards. What are the key considerations BioHealth should evaluate when negotiating the IP licensing agreement with PharmaPlus. What are the advantages and risks of licensing the patent versus commercializing the product independently. What clauses should be included in the license to protect BioHealth’s interests while enabling PharmaPlus to effectively exploit the patent?