The bargaining power of both parties to a licensing agreement often depends on the type of product. For example, a film studio that licenses the likeness of a popular superhero to an action figure creator could have significant bargaining power in this negotiation, as the manufacturer is likely to benefit enormously from such an agreement. The film studio thus has the leverage to relocate its activity elsewhere if the manufacturer is cold on its feet. International trade was defined as “any commercial activity organized and carried out by enterprises in pursuit of their stated objectives beyond national borders”. The way to run a business in a foreign market is possible with contractual methods that become international. This is usually a one-time transfer of intellectual property. A franchise, on the other hand, involves continuous support and a mutual relationship between two parties (Sharma, nd). In the business world, a license allows a company to use a property right with certain restrictions, while the licensor retains ownership of the product. For example, a apparel company may allow a foreign manufacturer to use its specifications and designs to manufacture clothing under a U.S. license agreement. Learn how to license a patent and how to buy and license other people`s patents.

However, if you`d rather not risk financial losses if your product doesn`t support well and you`re more interested in developing other new products or technologies, licensing can definitely benefit you more than starting your own business. .