Licensing as an exit strategy: practical lessons from the EIC webinar for beneficiaries

Brussels, February 3rd 2023
Summary
  • The European Innovation Council ran a webinar on 24 January 2023 to help EIC beneficiaries understand licensing as an exploitation route and potential exit strategy.
  • Seven practitioners from academia, industry and the European Patent Office presented sector cases across health, biotech, energy, agrifood and digital domains.
  • Key messages stressed the need to evaluate all exploitation routes, tailor licence terms to the business model, and prepare both pre- and post-licensing activities.
  • Around 260 EIC beneficiaries attended, with particular interest from Accelerator, Pathfinder and Transition projects.
  • Speakers and slides were made available after the event to allow beneficiaries to study real-world licensing examples and templates.

Licensing as an exit strategy: what EIC beneficiaries were told and what to watch for

On 24 January 2023 the European Innovation Council hosted an online webinar titled "Licensing as Exit Strategy" aimed at EIC-funded projects and companies. The event formed the second instalment in an EIC Licensing Series organised by the EIC Programme Manager for Health and Biotechnology, Iordanis Arzimanoglou. Programme Managers from other portfolios collaborated on the programme to broaden its reach across domains.

Event purpose, organisers and audience

The initiative was designed to give EIC beneficiaries practical expertise and hands-on insights into licensing and technology transfer so they could use licensing as part of their exploitation or exit planning. Presenters were asked to focus on selected cases and share first-hand experience about why some licensing deals succeed and why others fail. The organisers framed licensing as one of several possible exploitation routes rather than a guaranteed exit path.

RoleNameAffiliation / domain
Event organiserIordanis ArzimanoglouEIC Programme Manager for Health and Biotechnology
Collaborating programme managersFrancesco Matteucci, Isabel Obieta, Ivan ŠtefanićEnergy Systems and Green Technologies; Responsible Electronics; Food-chain technologies
SpeakersJohn CosmopoulosTufts University, USA, technology transfer (health/biotech)
SpeakersElicia MaineSimon Fraser University, Canada, innovation and commercialization
SpeakersSembi KamaldeepSimon Fraser University, Canada, technology licensing and IP counsel
SpeakersXana BelasteguiDnA Advisory Services / Universidad del Pais Vasco, agrifood and business strategy
SpeakersCarles PuentePolytechnic University of Catalonia (UPC) / Ignion, antenna and telecom licensing case
SpeakersThomas BereuterEuropean Patent Office, Innovation Support
SpeakersLilian VolcanUniversity of Oxford, agritech and IP strategy

Attendance was substantial for a targeted technical webinar. More than 120 EIC Accelerator beneficiaries joined, along with about 100 EIC Pathfinder participants and some 40 EIC Transition projects. The organisers aimed the content at entities at very early, early, and scaling stages so they could match licensing options to business case and maturity.

What the panel covered

Speakers were asked to present concrete cases across sectors and to describe the steps, trade offs and negotiation choices behind successful licenses. Presentations and discussion covered timing and readiness for licensing, different licensing models, tailoring agreements to business needs, how licensing interacts with other routes such as spin outs and sales, and the risks and concerns that licensors and licensees typically raise.

Licensing as an option rather than a single outcome:Panelists emphasised that licensing can be a route to revenue, a way to secure market access, or a bridge to partnership, but it is rarely a guaranteed exit. Licensing must be evaluated alongside alternatives including spin-out, strategic sale, joint development or continuing in-house development. Market timing and the maturity of both the technology and the team matter.
Common models explained:Speakers reviewed exclusive and non-exclusive licences, geographic and field-of-use restrictions, sublicensing rights, milestone and royalty payment structures, upfront fees, and cross-licensing. Case examples showed how deals bundle product supply, engineering services and IP rights to make adoption simpler for industry partners.

Practical takeaways endorsed by speakers

Across domain examples the event surfaced recurring lessons that are useful for European innovators and technology transfer offices. The list below synthesises the points covered in presentations and the panel discussion. These reflect practitioners' experience but are not a checklist that guarantees success.

ThemePractical implication
Consider all exploitation routesEvaluate licensing in parallel with sales, spin-offs and partnerships and be prepared to pivot as market feedback arrives.
Fit licence to business modelUse licence terms to support specific routes. For example, an early-stage licencing-for-access agreement may include services and training, while a revenue-focused licence will prioritise royalties and milestones.
Aim for win-win termsNegotiate options, rights to improvements, and clear performance obligations so both licensor and licensee can meet commercial goals.
Prepare pre-licensing workInvest in IP clarity, clear inventorship, quality data and defined go-to-market plans before negotiating to increase leverage and reduce friction.
Manage post-licensing activityPlan for enforcement, quality control, performance audits and commercialisation support after signature to protect value.
Sector and regional differencesExpect licensing dynamics to differ between sectors and between the US and Europe and between Western and Eastern Europe in terms of investor readiness and commercial standards.
Pre- and post-licensing phases:Speakers underscored that success depends heavily on what happens both before and after signing. Priorities include validating the technology in the target application, securing freedom to operate, clarifying ownership and inventorship, and preparing data and documents. After signing the parties must execute development plans, meet milestone obligations and manage compliance and enforcement.

Context and caveats worth noting

The webinar offered useful practitioner perspectives but attendees should treat case studies as informed examples rather than universally applicable recipes. Licensing outcomes depend on the strength and enforceability of IP, the structure of ownership in collaborative research settings, regulatory pathways in life sciences and agrifood, and the commercial incentives of potential licensees.

EU versus US market dynamics:Speakers commented on differences between the US and Europe and between Western and Eastern Europe. The US market can be more liquid and faster to adopt some technologies. In Europe fragmentation across countries, regulatory regimes and investor ecosystems can complicate licensing and scale. These differences affect valuation, negotiation posture and the attractiveness of licensing as an exit strategy.

Resources, materials and next steps

The EIC published the webinar agenda and made the recording and several slide decks available after the session. Presentations explicitly referenced in the post event material included an introduction slide deck and presentations by Xana Belastegui, Carles Puente and Thomas Bereuter. Beneficiaries were encouraged to study these materials and use them to inform their own exploitation planning.

Where to find the materials:The EIC posted the recorded session and slide presentations on its website together with an agenda. EIC beneficiaries can access those resources through the EIC events and news pages or by contacting the EIC programme services helpdesk.

Practical guidance for EIC beneficiaries considering licensing

If you are an EIC project or company that may licence technology, apply the following pragmatic sequence: assess the maturity and novelty of the IP, confirm ownership and any third-party claims, map potential licensees and their business models, pick licensing terms that enable adoption while protecting downside, and build a clear post-signature plan with measurable milestones. Engage your technology transfer office or external counsel early and use independent market validation to underpin licensing negotiations.

A reminder on expectations:Licensing can produce revenue or enable market entry, but it is not a simple or guaranteed exit. Many early-stage technologies need additional investment and development before industry partners will accept licensing risk. Expect long lead times in some sectors and factor enforcement costs into your commercial planning.

Selected resources and contacts

For a full overview of the event, including the agenda, recording and slide presentations, visit the EIC news and events pages. For follow up questions on EIC funding instruments and support services, beneficiaries should contact their EIC Programme Manager or the EISMEA helpdesk.