Maine License Agreement for Manufacture and Sale of Products in Foreign Country
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How to fill out License Agreement For Manufacture And Sale Of Products In Foreign Country?
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FAQ
Licensing is a contractual arrangement whereby the firm, the licensor, offers proprietary assets to a foreign company, the licensee, in exchange for royalty fees. Let's say you are unable to export to an overseas market due to complex rules and regulations or because the transportation cost is prohibitive.
Licensing agreements are found in many different industries. An example of a licensing agreement is a contract between the copyright holders of software and another company, allowing the latter to use the computer software for their daily business operations.
International licensing: International licensing gives a foreign business entity the right to manufacture or use a company's product for its market. While there are many benefits to international licensing for IP owners, there may also be obstacles exclusive to foreign territories, such as quotas or tariffs.
An international licensing agreement allows foreign firms, either exclusively or non-exclusively, to manufacture a proprietor's product for a fixed term in a specific market.
Types of licensing agreement The unique feature of this type of agreement is that even the licensor is excluded to use or exploit the licensed property during the term of the agreement. Copyright, trademark and patent licenses are the best examples of an exclusive license agreement.
How can a company use licensing agreements to enter world markets? By licensing, a company can negotiate an agreement that entitles it to produce or market another company's product in return for a royalty or fee.
Practitioners and licensing executives often refer to three basic types of voluntary licenses: non-exclusive, sole, and exclusive. A non-exclusive licence allows the licensor to retain the right to use the licensed property and the right to grant additional licenses to third parties.
Licensing also has the following advantages: The licensor company gains a market stronghold very rapidly. The licensor company's capital is not tied up in foreign operations. The licensor company has the option to expand into the market further by investing in the licensee company at a later date.
Following are the main advantages and reasons to use an international licensing for expanding internationally: Obtain extra income for technical know-how and services. Reach new markets not accessible by export from existing facilities. Quickly expand without much risk and large capital investment.
Licensing also has the following advantages:It enables a company to enter a market that has restrictions on foreign companies. The licensor company benefits from the licensee company's local market knowledge. The licensor company gains a market stronghold very rapidly.