Industry Trends – Transportation Equipment and Parts

ktMINE analysts often utilize our databases to compile industry trends. The following post covers trends for the Transportation Equipment and Parts industry, and utilizes licensing and patenting information. Specific attention was paid to the types of IP licensed, royalty/payment structures, exclusivity, territory, and sublicensing.

Figure 1. IP Licensed 

Manufacturing intangibles involve the right to use any combination of patents, processes, know-how, technical information, recipes, formulations and manufacturing training materials.

Marketing intangibles include the right to use any combination of trademarks, trade names, trade dress, copyrights, service marks, and logos.

Combination intangibles are designated when both manufacturing and marketing intangibles are licensed as part of the same transaction.

Figures 2-3 Exclusivity

Exclusive deals provide sole rights to the licensed IP to the licensee.

Non-exclusive deals allow the IP owner to enter into numerous licensing deals related to the licensed IP.

Multi-exclusive deals have both exclusive terms and non-exclusive terms. For Example, a multi-exclusive deal may grant the right to utilize the licensed IP in one field of use exclusively and in all other fields of use non-exclusively.

N/A signifies exclusivity was not specified within the agreement.

Figures 5-7 Royalty Bases

An integral aspect of IP valuation is determining the royalty bases associated with the license of IP. For this study, the royalty bases from each agreement were analyzed and, where necessary, normalized to conventional accounting definitions of gross sales, net sales, costs, gross profit, operating profit, and net profit.

Figure 8 Sublicensing

Sublicense is a license granted to a third party by the licensee.

Figure 9 Territory

The territory of an IP deal refers to the geographic location(s) the licensee may exploit the licensed rights.

About the author: ktMINE
ktMINE
Based in Chicago, IL, ktMINE collects, organizes, and connects transactional and IP data to help you quickly and confidently perform research. ktMINE then take that data and turn it into real, actionable insights. Because ktMINE believes that there’s a big difference between data and intelligence.