Licensing, franchising and other contractual strategies (Key Terms) Flashcards
An arrangement in which the owner of intellectual property grants a firm the right to use that property for a specific time period.
Licensing
An arrangement in which the firm allows another the right to use the entire business system in exchange for royalties.
Franchising
A royalty is…
A fee paid periodically to compensate a licenser for the temporary use of its intellectual property. Often based on a percentage of gross sales generated.
Cross-border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract.
Contractual entry strategies in International Business.
Ideas or works created by individuals or firms.
Intellectual property
The legal claim in which an owners intellectual property is protected and other are unauthorised to use it.
Intellectual property rights
A patent provides…
An inventor the right to prevent others from using a process or product they invented.
A trademark is…
A distinctive design or logo placed on a product label.
A copyright protects…
Original works of authorship and only allows them to reproduce it.
Grants a firm permission to use another firms proprietary name, characters, or logos for a period of time in exchange for a royalty.
Trademark licensing
A contract in which the focal firm provides technological or managerial knowledge about how to design manufacture or deliver a product or service.
Know-how agreement
Turnkey contracting is…
An arrangement in which the focal firm or a consortium of firms plans, finances, organises, manages and implements all phases of a project abroad and then hands it over to a foreign customer once local workers are trained.
Arrangement in which the firms or a group of firms contracts to build a major facility abroad, operate it for a specified period then transfer control to the project sponsor. (host government, public firm)
Build-Operate-Transfer (BOT)
Arrangement in which a contractor supplies managerial know how to operate a facility in return for compensation.
Management contract
Where the focal firm, rents out machinery and/or equipment to a government or corporate client in return for regular payments, for a specified period of time.
Leasing
