Licensing: Licensing means giving a grant to others to access their patents, technology and trade secrets for a fee.
The fashion industries like Pierre Cardin and high tech firms use licensing as an entry mode because it prevents them from piracy of their products by others. They give license to those who required and get royalty instead of that.
This is being an attractive mode of entry because the companies do not need to open their stores by itself. They just give licensing to others and in return earn royalty (2 to 5 %) of sales. Also, they have full control over the discard the license.
Joint Venture: A joint venture is a mutual agreement in between two or more companies to share their financial and non-financial resources to achieve a specific goal.
Strategic Alliance: In this, two or more companies do agreement to achieve a specific task while remaining independent firms.
The difference between a strategic alliance and the joint venture is as follows:
Table: 13.11. Difference between a strategic alliance and the joint venture
The duplication of patent or copyright content of a company, an individual or scientists etc. in an unauthorized way, to sell the products made with help of this or formulas etc. at a lower price than of the actual price, to earn money is known as piracy.
When the goods are either physical or intellectual property, the piracy might be beneficial for an exporter. For example, piracy of intellectual property like MS software's, Japanese's Magna would be taken in a positive way by the customers despite dangers. It is taken as a product diffusion tool and also now supported by commercial industries.