Abstract: This paper proposed a model to analyze the licensing schemes when the patentee had private information about its technology value. In this model, the patentee was considered as an insider in Homogenous Stackelberg Market instead of an independent R&D institute. Based on this model, this paper presented the patentee’s optimal licensing option for maximizing its profit under the condition that the licensee may accept the contract. In the same way, this paper analyzed the fixed fee, royalty and the profit of the patentee in the model, respectively. This paper aims at proposing an idea for the participants to advance the efficiency of licensing.

Key words: asymmetric information, homogeneous Stackelberg, licensing, technology quality, asymmetric information, homogeneous Stackelberg, licensing