Question

Which of the following is an example of licensing?a- An Indian automobile manufacturing company buys engines from a Japanese manufacturer for its environmentally-friendly cars.b- A South-Korean consumer electronics manufacturer produces the screens for its brand of television and sends orders to a factory in China to manufacture the casing for the television.c- A U.K-based motorcycle manufacturer, produces limited-edition customizations of the company's stock models and sells it to customers around the world.d- An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada.

Answer 1

Answer: The correct answer is "d- An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada.".

Explanation: "An American electronics firm has given the right to a new process for manufacturing e-book readers to an electronics manufacturer in Canada." is an example of licensing because in this contract the owner of a registered trademark (Licensor) grants authorization to a company (Licensee) to produce and sell products with that brand in a specific territory and for a specific period of time.