A licensing agreement is a written contract between two parties, in which one landowner allows another party to use that property under a number of parameters. A licensing agreement or licensing agreement usually involves a licensee and a licensee. Facilitate the commercialization of university innovations: The Carolina express license agreement, DeSimone, J.M., Mitchell, L. (2010). This article discusses ways to increase economic growth in the United States after the severe recession of the 1930s, by inventing ways to create more jobs and facilitate innovation in America. Some results have shown that new companies, which have performed well, have created new jobs. The author analyzes a number of practices derived from various researches from universities such as the University of North Carolina at Chapel Hill. It turns out that companies are formed by the university as a result of intellectual property. Some of these discussions and innovations led to the creation of the Carolina Express licensing agreement. One of the most important elements of a licensing agreement is the financial agreement. Payments made by the licensee to the licensee are usually made in the form of guaranteed minimum payments and royalties for sales. Royalties are generally between 6 and 10 per cent, depending on the ownership and the degree of experience and sophistication of the licensee. Not all licensees need guarantees, although some experts recommend that licensees receive as much compensation in advance as possible.
In some cases, licensees use warranties as the basis for renewing a licence agreement. If the taker completes the minimum sales figures, the contract is renewed; Otherwise, the licensee has the option of terminating this relationship. Patent licenses have been studied in formal business models in the field of industrial organization. In particular, Katz and Shapiro (1986) studied the optimal licensing strategy of a research laboratory sold to competing companies in the product market.  It appears that the licensee`s incentives to develop innovation may be exaggerated (compared to the social protection solution), while the licensee`s incentives to disseminate innovation are generally too low. Subsequently, the pioneering work of Katz and Shapiro (1986) was extended in several directions.