DISCUSSION CHAPTER 6 - 8 Licensing propriety technology to foreign competitors is the best way to give up a firm's competitive advantage Discuss MO

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8. Licensing propriety technology to foreign competitors is the best way to give up a firm's competitive advantage. Discuss. MO 6.5 Technology licensing is a contractual arrangement in which the licensor's patents, trademarks, service marks, copyrights, trade secrets, or other intellectual property may be sold or made available to a licensee for compensation that is negotiated in advance between the parties. This compensation, or royalties, may be a lump sum royalty, a running royalty (royalty that is based on volume of production), or a combination of both. U.S. companies frequently license their technology to foreign companies that then use it to manufacture and sell products in a country or group of countries defined in the licensing agreement. A technology licensing agreement usually enables a firm to enter a foreign market quickly, and poses fewer financial and legal risks than owning and operating a foreign manufacturing facility or participating in an overseas joint venture. Licensing also permits U.S. firms to overcome many of the tariff and nontariff barriers that frequently hamper
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This note was uploaded on 04/07/2012 for the course MANAGEMENT 301 taught by Professor ?? during the Spring '10 term at Thomas Edison State.

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