Mercedes-Benz has been given the right to use the Swatch watch brand name for its new Swatchmobile, a micro-compact car that is just over 8 feet long and capable of holding two people and one overnight bag. Mercedes-Benz paid a fee to Swatch for the use of its name and hopes the popularity of the Swatch watch will give the midget car instant brand recognition. This is an example of:

Question

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Mercedes-Benz paid a fee to Swatch for the use of its brand name, which is a typical arrangement in licensing agreements where one company allows another to use its brand, logo, or technology in exchange for a fee.

Mercedes-Benz Has Been Given the Right to Use the Swatch