We examine the spillover effects of public firm disclosures on patent licensing, a key mechanism for technology diffusion. An interquartile increase in public firm presence, our proxy for peer disclosures, is linked to a 20.7% higher likelihood of a firm obtaining a license. For licensed patents, contracts become less strict as public disclosures increase: licensors are more likely to forgo unilateral termination rights, grant exclusivity, and charge lower royalties. We find support for a causal narrative using Bartik instruments and the EDGAR implementation as a setting. The documented link is stronger when information asymmetry is higher, disclosures are more relevant, and the economic environment is more volatile. That is, licensors are less likely to rely on restrictive clauses when public disclosures likely have a more pronounced role in resolving information frictions. Conditional on licensing, we find a significant increase in licensees’ innovative activity that directly builds on the licensed patent, consistent with patent licensing stimulating the diffusion of technology and ideas across firms.