Which type of agreement is believed to reduce the risks associated with licensing technological know-how?
A)Franchise agreement
B)Service-licensing agreement
C)Lateral agreement
D)Cross-licensing agreement

Question

Quizplus · Accepted Answer

Under a cross-licensing agreement,a firm might license some valuable intangible property to a foreign partner,but in addition to a royalty payment,the firm might also request that the foreign partner license some of its valuable know-how to the firm.Such agreements are believed to reduce the risks associated with licensing technological know-how,since the licensee realizes that if it violates the licensing contract (by using the knowledge obtained to compete directly with the licensor),the licensor can do the same to it.

Which Type of Agreement Is Believed to Reduce the Risks