Exclusive Licensing of a Patent Holder
Exclusive patent license agreements offer the most protection to licensees but also comes with the most responsibility and expectations. An exclusive patent license is an agreement between the licensor and the licensee stating that the licensor will not practice under the patent or grant other exclusive licenses to other parties.
Exclusive license holders also enjoy the full commercial advantages that come with the patent license agreement. The licensor may require that the holder of an exclusive patent license agreement meets certain goals. This is often known as a minimum annual royalty provision. According to minimum annual royalty provisions for exclusive patent license agreements, an inventor may be expected to commercialize their patent within the first year or another designated time period.