WHAT IS LICENSING
IT IS AN CONTRACTUAL AGREEMENT BETWEEN TWO BUSINESS ENTITIES WHEREBY THE LICENSOR (SELLING FIRM) ALLOWS THE LICENSEE (THE BUYING FIRM) TO USE ITS TECHNOLOGY PATENTS TRADEMARKS DESIGNS-PROCESSES INTELLECTUAL PROPERTY IN EXCHANGE FOR A FEE OR A ROYALTY
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DEFINITIONS
ACCORDING TO ANDREW WAKEFIELD THE TRANSFER OF RIGHTS TO MANUFACTURE OR MARKET A PARTICULAR PRODUCT TO ANOTHER INDIVIDUAL OR ORGANIZATION THROUGH A LEGAL ARRANGEMENT OR CONTRACT. IT USUALLY REQUIRES A FEE,COMMISSION, OR ROYALTY THAT IS PAID TO THE LICENSOR.
ACCORDING TO PAT UPON LICENSING IS A PRACTICE OF ALLOWING A MANUFACTURER TO AFFIX THE IDEA ,CHARACTER , DESIGN , OR OTHER REPRESENTATION OWNED BY ANOTHER TO HIS PRODUCT.
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OBJECTIVE
THE MAJOR OBJECTIVE OF LICENSING SYSTEM IS TO GIVE EFFECT TO THE INDUSTRIAL POLICY OF THE GOVERNMENT. TO REGULATE FOREIGN CAPITAL AND TECHNOLOGY. TO ENCOURAGE EXPORTS AND THE SUBSTITUTION OF IMPORTS. TO CONSERVE FOREIGN EXCHANGE. TO ENSURE THE USE OF LARGE SCALE ECONOMIES AND PROPER TECHNOLOGY
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BENEFITS OF LICENSING
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