Business Decisions Flashcards
1
Q
Define a license
A
A license allows a third party organisation the rights to exploit and asset belonging to the licensor
2
Q
Benefits of a license
A
Allows growth into markets without investment
Could lead to further offerings of license if successful
If not taken competitor may make their own developments
Fixes Revenue reducing risk
3
Q
Disadvantages of license
A
If licensee is larger, this could create a power imbalance
Possibility licensee will learn method and develop competitor patents
Fixed term of license, what happens after
