If the invention desired by the company for commercial purposes is claimed in a patent or patent application owned by the U.S. Government, the company must negotiate either a Commercial Evaluation License, an Internal Commercial Use License, a Nonexclusive Patent License or an Exclusive Patent License through the OTT.

Commercial Evaluation Licenses grant the nonexclusive right to make and use the technology for the purpose of evaluating its commercial potential. The license is for a limited number of months and does not grant the right to sell or otherwise distribute the invention. Companies are required to obtain a commercial patent license for further use and/or development of the invention.

Internal Commercial Use Licenses grant the nonexclusive right to make and use the invention for the purpose of internal use by the licensee. These licenses do not grant the right to sell or otherwise distribute the invention, but allow the licensee to use the invention as a tool in their commercial development activities.

Nonexclusive and Exclusive Patent Licenses allow a company to commercialize the invention, under appropriate circumstances pursuant to applicable statutes and regulations. An exclusive license limits the use of the invention to a single group or entity while a nonexclusive license allows for use by multiple concerns.

If the invention desired by the company for commercial purposes is not claimed in a patent or patent application owned by the U.S. Government, the company must negotiate a Biological Materials License.

Biological Materials Licenses allow a company to make, use and/or sell commercially useful biological materials which are not in the public domain and for which patent protection cannot or will not be obtained. This type of license typically is nonexclusive and facilitates the commercial development of biological materials developed in PHS laboratories without requiring that patent protection be obtained for every material.