An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n)_____ agreement.

Question

Quizplus · Accepted Answer

A licensing agreement is a contractual arrangement whereby a firm (the licensor) grants the right to use its intellectual property, such as patents, copyrights, or trademarks, to another company (the licensee) for a specified period of time in exchange for royalties or other compensation. This allows the licensor to generate additional revenue from its intellectual property without having to manufacture and sell the product itself, while the licensee benefits from access to valuable technology, brand recognition, or other intangible assets.

An Arrangement Whereby a Firm Grants the Right of Intangible