"Exhilaration is that feeling you get just after a great idea hits you, and just before you realize what's wrong with it!"
"THE ILLUSION OF EXCLUSION"
You don't want to share your patented technology with competitors because you want to keep it for your own beneficial use. This is a common belief that is more myth than reality as you will see below.
Myth No. 1- Patents protect your competitive position and licensing will only allow competition. Enforcing those patent rights against competitors requires extreme vigilance in your markets as well as very deep pockets to exercise that right against possible infringers. While there are rare situations where both of these are viable paths to pursue, most inventions do not meet that criteria. Most inventions have a "next best alternative" available from competitors that can be used if the inventor choses to go it alone in the market. All this results in is lost sales and lost profits.
Myth No. 2- Our know-how gives us an advantage over our competitors and licensing it only makes them stronger. This may partially be true but it also shuts off another very lucrative source of royalty income that goes beyond what a patent license can generate. Know-how licensing, and the income stream from it, can survive well beyond the typical 20 year life span of a patent. It can also help to establish your technology as the industry standard if it is made available to others rather than letting them create their own. By doing so you create the scenario where it is easier for a competitor to use your technology than spend the effort to develop their own competing technology.
Having the right licensing strategy available at the right time can help your organization achieve significant profits from your IP portfolio well beyond what you can do alone.
Every licensing deal is unique. It starts though with the decision to share your technology with others, including even your competitors. There are many advantages to be gained by doing so, including generating a totally new stream of revenue and having your technology instead of a competitors become the industry standard.