IBUS1101 Lecture Notes - Lecture 12: Car Rental, Franchising, Sewage Treatment

• School: University of Sydney
• Department: International Business
• Course: IBUS1101
• Professor: Sidney Gray

Document Summary

Week 12 licensing, franchising and other contractual strategies (textbook. Intellectual property: ideas or works that individuals or firms create, including discoveries and inventions; artistic, musical, and literary works; and words, phrases, symbols, and designs. The legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties. Contractual entry strategies in international business are cross-border exchanges in which the relationship between the focal firm and its foreign partner is governed by an explicit contract. Two common types of contractual entry strategies are licensing and franchising. Licensing is an arrangement by which the owner of intellectual property grants another firm the right to use that property for a specific time period in exchange for royalties, fees or other compensation. A royalty is a fee paid periodically to compensate a licensor for the temporary use of its intellectual property.