Complete Question:
Diners Corporation, a U.S. firm, signs a contract with Essen, A,G., a German firm, to give Essen the right to use Diners’ trademark in restaurants in Germany. This is?
Group of answer choices
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Answer:
D. Licensing.
Explanation:
Diners Corporation is a U.S. firm which signed a contract with Essen, A,G., a German firm, to give Essen the right to use Diners' trademark in restaurants in Germany. This is licensing.
Licensing can be defined as a strategic business approach, which involves a company giving permission (license) to another company so it has the right to produce or manufacture its products, usually for a specific amount of money.
Hence, the company being granted a license has the right to use the other company's patent, copyright, design and trademark in its productions.
