Licensing the product

Licensing the product

• Plan detail:
• The company (licensor) will sign a licensing contract with a European firm
(licensee) included the right for the licensee to manufacture and sell the
product within the Europe market.
• The licensee are responsible for marketing , distributing and payments.
• The licensor will provide information , personnel training and support to the
licensee.
Pros and Cons
• Pros
• Quick and easy entry mode.
• Avoid tariff barriers and border requirements.
• Lower capital requirements.
• Able to generate profits quickly.
• Protect the ownership of the product.
• Lower risks .
• Chances of collaboration .
Pros and Cons
• Cons
• Low level of control.
• Loss of technology and ownership.
• The licensee might become competitor.
• Contract disagreements
• Dependency on the licensee.
• Poor strategy and quality management.