Advantages and Disadvantages of Product Licensing

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There are several pros and cons to product licensing and they are listed below.

Benefits to the Licensee:

Getting the best product ideas and features and turning them into tangible assets for quick market entry with a potential high-demanding product.
Does not require investment in research and development, saving time and money. Current resources can be optimally utilised to manufacture and sell the product.
Benefits to the Licensor:

Reduction of the significant investment required to establish factories for spain phone number list production, distribution outlets for sales, and advertising campaigns for promotion.
Can concentrate more on innovation and development of new product concepts while the licensee handles its operations.
Drawbacks Faced by the Licensee:

Relying on the intellectual property of any licensor can pose problems in terms of market performance. Products could become less popular, or customers might look for different products.
Royalties are expensive, and negotiating favourable terms for the price is challenging.