Intellectual property rights are valuable assets that can be licensed to a foreign licensee as a means to penetrate a foreign market rather than establish a wholly owned subsidiary.

Question

Quizplus · Accepted Answer

This statement is true. Licensing intellectual property rights to a foreign licensee is a common strategy for companies to expand into foreign markets without having to establish a wholly owned subsidiary. The licensee pays a fee or royalty to use the intellectual property, providing the licensor with an ongoing stream of revenue while allowing the licensee to benefit from the use of the intellectual property.

Intellectual Property Rights Are Valuable Assets That Can Be Licensed