FTO licensing in the pharmaceutical industry deserves special consideration because of the large economic scale of the market, expensive cost of R&D, extremely low success rate, and easy duplication of the drug. Taking these unique aspects into consideration, the author first explaines how to perform a good FTO search and conclude an appropriate FTO licensing agreement, and then points out two issues
(i) the issue of FTO licensing and EU competition, especially the unreasonable application of the Guideline, and (ii) the issue of FTO licensing and differentiating between a bio venture company and a pharmaceutical company. Solutions for these issues are proposed.