Patents are a big capital investment for small or start-up businesses. If you don't have the money to manufacture or sell your own product, or you simply choose not to, you can license it to someone else. Show
Benefits of patent licensingFor patent owners, the licensing model offers the following advantages:
To be successful, a licensing arrangement should benefit all the parties involved. By acquiring rights to a patent, a licensee can:
If put into place correctly, licensing can be lucrative and mutually beneficial to both the patent and the licence holder. However, licensing can also increase potential competition and risks for both parties, so it's important to consider potential pitfalls. Disadvantages of licensing patentsIt can take a lot of effort and determination to find the right licensee. To give your product the greatest chances of success, you should put a lot of thought into evaluating potential licensees and structuring your licensing agreement. Other potential risks and downsides to patent licensing include:
In addition, by licensing out your product, you are effectively creating competition for yourself. You may try to limit the scope of the license as much as possible to avoid giving your competitors unnecessary advantage in the marketplace. Keep in mind that you will need to manage your relationship with the licensee carefully. If things go wrong, you may find yourself in disputes or needing to cover legal costs. Before you sign over any rights to your patent, it's worth doing due diligence checks on any potential licensees to assess their suitability and track record. If you decide to sell or license your patent, you should keep detailed records of any contracts or agreements you have made. Seek legal advice if in doubt. See how to license a patent and read about buying and licensing other people's patents. Asked by kateyengler Image transcription text Which of the following is a disadvantage of licensing as a means of acquiring new technology? It involves higher monitoring costs. The firm does not control or own the unique technology; it depends on another firm. The purchase of a company can be expensive. Coordination costs can be high and organizational cultures can clash. It is expensive and time-consuming to develop. ... Show moreThis question was created from Chapter 15 quiz Answer & Explanation Solved by verified expert Answered by kariwossa ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit Donec ali molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, s a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Don Unlock full access to Course Hero Explore over 16 million step-by-step answers from our library Subscribe to view answer Step-by-step explanation molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulv Which of the following is a disadvantage of a licensing agreement?Licensing agreements allow parties to control property and enter new markets without having to spend the money to do so. Drawbacks of these deals include establishing a relationship with the wrong company and the possibility of losing a company's reputation.
What are the benefits and risks of licensing technology?Advantages of Licensing. Income without overhead. ... . Potentially better marketing. ... . Enter foreign markets more easily. ... . Diffuse conflicts. ... . Risk of IP theft. ... . No guarantee of revenue. ... . Unintended competition. ... . Risk of diminished reputation.. Which of the following is not considered a specific disadvantage of licensing as a business strategy?Which of the following is NOT a disadvantage of licensing? Little control over the marketing of the products.
Which of the following is an advantage of licensing quizlet?11) One of the advantages of licensing is that the profits generated from such agreements are typically higher than for FDI.
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