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Definition

  1. (strategic marketing definition) A relatively simple, low risk linkage that allows a manufacturer to "enter" new markets. It is an arrangement in which a licensee is given the right to use a process, trademark, patent, or other proprietary item for a fee or royalty.
  2. (global marketing definition) An agreement between two companies in which the licenser grants the right to the licensee to sell a patented product in specified markets for an agreed-upon fee. It is a tool for participating in foreign markets without large capital outlays. When capital is scarce, when import restrictions forbid any means of entry, when a country is sensitive to foreign ownership, or when it is necessary to protect trademarks and patents against cancellation for non-use, licensing is a legitimate means of capitalizing on a foreign market.
  3. (sponsorship) The right to use a property's logos and terminology on products for retail sale. Note: While a sponsor will typically receive the right to include a property's marks on its packaging and advertising, sponsors are not automatically licensees.[1]

See also


References

  1. ^ American Marketing Association. Dictionary. <https://www.ama.org/resources/Pages/Dictionary.aspx> (cited 3 June 2015).

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