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Business English Exercises
 

Technology licensing

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 198
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technology licensing answer 1
Technology licensing is a contractual arrangement in which the licensor's patents, trademarks, service marks, copyrights, trade secrets, or other intellectual property may be sold or made available to a licensee for compensation that is negotiated in advance between the parties.

Correct answer: (c) intellectual

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technology licensing answer 2
This compensation, or royalties, may be a lump sum royalty, a running royalty (royalty that is based on volume of production), or a combination of both.

Correct answer: (c) lump

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technology licensing answer 3
A technology licensing agreement usually enables a firm to enter a foreign market quickly, and poses fewer financial and legal risks than owning and operating a foreign manufacturing facility or participating in an overseas joint venture.

Correct answer: (c) poses

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technology licensing answer 4
Licensing also permits U.S. firms to overcome many of the tariff and nontariff barriers that frequently hamper the export of U.S. manufactured products.

Correct answer: (c) hamper

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technology licensing answer 5
Technology licensing can also be used to acquire foreign technology, such as cross-licensing agreements awarding rights to improved technology developed by a licensee.

Correct answer: (b) cross-licensing

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technology licensing answer 6
Franchising is also an important form of technology licensing used by many service industries, where the franchisor (licensor) permits the franchisee (licensee) to employ its trademark or service mark in a contractually specified manner for the marketing of goods or services.

Correct answer: (c) specified

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technology licensing answer 7
As a form of 'exporting', technology licensing has certain potential drawbacks: one negative aspect of licensing is that control over the technology is weakened because it has been transferred to an unaffiliated firm.

Correct answer: (c) drawbacks

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technology licensing answer 8
In considering the licensing of technology, it is important to remember that foreign licensees may attempt to use the licensed technology to manufacture products in direct competition with the licensor or its other licensees.

Correct answer: (b) competition

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technology licensing answer 9
In many instances, U.S. licensors may wish to impose territorial restrictions on their foreign licensees, depending on U.S. and foreign antitrust laws as well as the licensing laws of the host country.

Correct answer: (c) impose

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technology licensing answer 10
Also, U.S. and foreign patent, trademark, and copyright laws can often be used to bar unauthorized sales by foreign licensees, provided that the U.S. licensor has valid patent, trademark, or copyright protection in the United States or the other pertinent countries.

Correct answer: (c) pertinent

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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