You can also validate the technology for a fee. This can be effective when the technology is complex or unique and the risk of invading a foreign market on its own is high. The company cares for thousands of customers in a hundred countries around the world and represents many cultures. The company employs approximately 100,000 people in 95 countries and operates hundreds of sites around the world. But what many do not know is that Honeywell is very active in licensing its intellectual qualities; it has granted more than 1,500 licenses with annual sales of more than $100 million. Licensing can also be done for the use of a trade name, for the distribution of imported products and for a service. 7-Eleven is considered the leader in licensing the convenience industry and signed its first licensing agreement in the United States in 1968. A license gives the legal authority to commit certain acts. Some licenses are required to protect the public. For example, a doctor is authorized to provide professional competence, and the owner of a bar and restaurant is allowed to prove moral form.
Some licenses are used to increase government revenues (for example. B car licences) or to give permission to another party to use land (for example. B landing facilities). In the industry, a license is the granting of permission to use a property right in a limited capacity, while the licensee is still allowed to retain the property. For example, a U.S. apparel manufacturer may, as part of a licensing agreement, authorize a foreign manufacturer to use its designs and specifications to manufacture apparel. On the other hand, a small company should be careful to protect the information it shares with a foreign company as part of its licensing strategy. Export.gov, a U.S. government department, recommends that all patents and trademarks be registered in each country where a small business does business to protect its interests. A foreign company could use the intellectual information a company provides to start producing its own products and become a competitor rather than a collaborator. Since, in this type of entry, the transmission of knowledge between the parenting company and the licensee is important, the decision to enter into an international licensing agreement depends on the host government`s respect for intellectual property and the licensee`s ability to choose the right partners and prevent them from competing in the other`s market. Licensing is a relatively flexible labour agreement that can be tailored to the needs and interests of the licensee and licensee.