A multinational enterprise wishing to exploit a patent may choose to sell a foreign company the right to use the property rather than entering the foreign market itself. The sale of such rights is licensing.

Question

Quizplus · Accepted Answer

Licensing is a business arrangement in which one company gives another company permission to manufacture its product for a specified payment, effectively allowing the patent holder to exploit the patent through another company without entering the foreign market directly.

A Multinational Enterprise Wishing to Exploit a Patent May Choose