Fonterra to licence out products

NEW ZEALAND – Dairy co-op Fonterra is creating a new business within the company that will concentrate on licensing out its intellectual property (IP).

The business will provide licenses to other companies, allowing them to use its formulations and IP in return for sales-based royalty payments or licensing fees.

John Smith, business manager formulated milks, said: “We want to establish a small set of customers that rely on us for their product development, who will tell us their business strategies and what products they want ahead of time, so that we can develop them.”