Definition: Granting of permission to use intellectual property right under defined conditions. The licensing concept can help a company expand beyond the initial period of product development. The defined condiDefinition: tions include fields of application, geographic limitations, and royalty rates. Financial commitment (for product commercialization), access to market niches and distribution channels (domestic and gDefinition: lobal), and gaining access to other technologies, are just a few of the reasons why businesses choose to license, rather than develop or market internally. Definition: [crh] Arrangement in which a local firm in the host country produces goods in accordance with another firm's (the licensing firm's>) specificationDefinition: s; as the goods are sold, the local firm can retain part of the earnings.

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