The Tsingtao Brewing company pays a fee to AB-InBev for the right to brew and distribute Budweiser in China. Tsingtao is the licensor and the fee paid is a royalty.

Question

Quizplus · Accepted Answer

The statement is incorrect. Tsingtao is the licensee and pays a fee to AB-InBev for the right to brew and distribute Budweiser in China. The fee is a license fee, not a royalty.

The Tsingtao Brewing Company Pays a Fee to AB-InBev for the Right