BizTerm Definition
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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 conditions include fields of application, geographic limitations, and royalty rates. Financial commitment (for product commercialization), access to market niches and distribution channels (domestic and global), and gaining access to other technologies, are just a few of the reasons why businesses choose to license, rather than develop or market internally.

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