The Licensing Decision

What this pack runs.

A license is permission for another company to make or sell the thing that makes you special, as its own product, for a payment on each unit and a set of terms. The thing stays yours. The customers do not. A room multiplies the licensee's forecast by the rate, calls the result free money, and argues about whether the rate is high enough. That is not the comparison. Each unit the licensee takes from you costs the margin on the unit it replaced rather than the royalty, and where the licensee sells in your market that is most of its units. This pack turns it into two multiplications and a subtraction. What the license pays a year is the royalty on every licensee unit, plus what rides along, less what running it costs. What it takes is the licensee's units that would have been yours, at what one of your own units earns you. The rate at which the two are equal is the break-even royalty, and how far the rate on the table clears it is a distance a board can watch. The second distance is the break-even overlap, the share of the licensee's customers that can already be yours before the license takes more than it pays, and the Model tab sweeps it from none to all, because the same license lands in a different column for every licensee. It stops on two halts: no one has counted where the licensee's customers would come from, and no one has asked what rides along. Both accept a deliberate zero, and each zero is its own reading: a licensee whose customers were never yours, and a license on which nothing rides.

The casebooks these cases come from.

The pack reads nine sourced decisions through the framework. They are drawn from these casebooks, each one a set of verified records on a single decision type.

A verified record has passed a mechanical claim-versus-source check, a second model's read, and human approval. The count is what exists today, not a target.