Week 5 - 9

Question 1

What are in-bound and outbound licensing strategies?

Answer 1

In-bound refers to themes developed by third parties, outbound are issued by the party (Prime example - LEGO).

Question 2

What are Contractual entry strategies in international business?

Answer 2

Cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract.

Question 3

What is Intellectual Property?

Answer 3

Ideas or works that individuals or firms create, including discoveries and inventions; artistic, musical and literary works; and words, phrases, symbols and designs.

Question 4

What are IPR?

Answer 4

The legal claim through which the proprietary of assets (ownership/ claim of assets) of firms and individuals are protected from unauthorised use by other parties. Crucial for encouraging creativity and innovation

Question 5

What is licensing?

Answer 5

Arrangement by which the owner of IP grants a firm the right to use that property for a specific time period in exchange for royalties or other compensation.

Question 6

What is a royalty?

Answer 6

A fee paid periodically to compensate a licensor for the temporary use of its intellectual property, often based on a percentage of gross sales generated from the use of the licensed asset.

Question 7

What are some examples of how royalties are generated using contractual entry strategies?

Answer 7

LEGO

Licensing agreements such as Smyths. Co-brand partnerships such as video games.
Franchising models or merchandising rights such as clothing or theme parks.

Question 8

What are the risks with licensing?

Answer 8

• Brand misalignment
• Lack of quality control
• Cultural sensitivity/ reputation
• IP Infringements