Technology

IBM operates across a broad spectrum of hardware, software and services in the information technology industry. Whether created as a part of basic or applied research, product development or engineering, or to support services delivery engagements, IBM is willing to consider licensing its technology outside the company.

Technology licensing practices

IBM has an active program of licensing selected technologies to third parties. Technology potentially available for licensing covers the full range of IBM's businesses, from processes used in integrated circuit and hard disk storage device manufacture to complete product and device designs and software source code. Licenses can include rights under copyrights, trade secrets, know-how, and patents. Licenses under this program are non-exclusive and on an "as-is" basis with extremely limited warranties.

IBM licenses technology primarily to enhance the return on its investment in the technology. License fees are at market rates and typically consist of combinations of up front payment and royalties based on revenues generated from use of the licensed technology. The decision to license a particular technology is based on a number of factors, including but not limited to:

	whether IBM wishes to have a continued presence in the particular technology field concerned,
	the relative importance of the technology to IBM's own present and future business,
	the potential for the licensee's use of the technology to enhance its value by increasing its utility or the likelihood of complementary sales of IBM products or services,
	any potential negative business impact resulting from the licensee's activities.
Licensing is undertaken with the aim of forming a complementary relationship between IBM and the licensee. In certain circumstances IBM will consider arrangements alternative to licensing, such as sale or joint development of technology assets. The structure of such transactions is determined on a case-by-case basis. IBM makes it a practice not to license its technology to companies or individuals that do not respect IBM's intellectual property interests. A license to an IBM technology does not include any rights to IBM's patents unless explicitly covered in the license. All technology licenses are subject to variations in local laws and regulations. If you are interested in licensing other IBM technologies, contact us.