Licensing strategies for patents will often seek to be broad enough and priced at a level that avoid creating commercially significant non-core markets for unlicensed products or services. The problem with not licensing participants in such markets is that it creates too great an economic incentive for a proliferation of infringing activity for the IP owner to effectively litigate to enforce its rights, i.e., a whack-a-mole type problem – and infringing goods and services from such infringers can eventually leak into the IP owner’s or its licensees core markets. For this reason a well thought out licensing strategy, rather than granting no licenses or only exclusive arrangements, may seem to license enough licensees outside the intellectual property owners core business as to prevent this problem.

