The Technology Transfer Office facilitates agreements between the IP owner (the licensor) and an interested party (the licensee) to use, modify, and or resell the IP in exchange for compensation. The compensation may take the form of a lump sum royalty, payment based on volume of production (called running royalty), or right to use licensee’s technology (called cross licensing). Through licensing of proprietary technology, small firms can earn substantial income from markets that they could not penetrate on their own, and large firms can have foreign affiliates without high financial and legal risks.