INTB 2200 Lecture Notes - Lecture 4: Royalty Payment
27 Jul 2018
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For information 1, 2, 3 use the latest year financial numbers given in the case b. That is why it is generally suffested not to license. Don"t sign a 5 year licensing agreement, try 3 years. Exclusive license means that that licensee is the only and sole company can manufacture in that country but can sell it anywhere else unless specified in the contract. Multinational companies should not issue licenses unless they want their technology to become industry standard. Sandy is a good businessman, but he is sneaky and alex should not trust him. What should alex do: get patents all across the world, so nobody could steal the technology. Sandy is offering a jv in australia, and he wants 60%, giving alex 40%. Sandy offers management to run a jv and his equipment. Australia is a strategic point, located close to asia, so sandy wants to penetrate asian markets.
