Final answer:
The correct sequence to settle conflicting demands by licensees is negotiation, followed by mediation, and then arbitration if necessary.
Step-by-step explanation:
The logical sequence that licensees may employ to settle conflicting demands is a) Negotiation, mediation, arbitration. This progression allows the parties to start with a more informal and cost-effective process where they try to work out their differences directly. If that fails, they enter mediation, where a neutral third party assists them in reaching an agreement. If mediation is unsuccessful, they proceed to arbitration, which is more formal and usually results in a binding decision.