Question

In which of the following modes of entry, does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee?

• A. Licensing
• B. Contract
• C. Joint venture.
• D. None of the above

Answer 1

Answer: (A)

Licensing

A licensing agreement is a between partnership between an intellectual property rights owner (licensor) and another who is authorized to use the such rights (licensee) in exchange for an agreed payment.

A variety of such licensing are available which may be broadly categorized as follows:

1. Technology license agreement .

2. Trademark licensing.

3. Copyright license agreement.