The article presents a model that looks at how companies with patents interact with others who want to use their technology. The researchers found that when companies use fixed-fee or royalty agreements, the total output and consumption of goods are higher compared to when there are no agreements. Additionally, using fixed-fee agreements leads to even higher output and consumption than using royalty agreements. Companies prefer fixed-fee agreements when they have advanced technology. Overall, transferring technology through agreements can improve welfare, with fixed-fee agreements resulting in higher welfare levels than royalty agreements.