Licensig Proprietary Technology for Process - myassignmenthelp

Question: Discuss about theLicensig Proprietary Technology for Process and Trademark. Answer: Introduction: Licensing is one of the conventional ways for entering a new market. The concept of the licensing refers to the legal and ethical documentation of a company that enable the company to enter into the new market with proper right and authority to use its property in the market (Lichtenthaler and Ernst 2012). Licensing is the method for the development and exploitation of the intellectual property with the use of rights of transferring to the third party concealing the ownership. Licensing includes various ways such as the patents, formulas, designs, copyright, inventions, process and trademarks. In short, licensing is the permission permitting a company for the transfer of the manufactured product other company. Loss of Competitive Advantage: Technology being one of the major determinates in the global economy, plays an important role in ensuring competitive advantages for the company (Campbell, Coff and Kryscynski 2012). It is definite that the competitive advantages in the new foreign market is ensured and determined by the licensing proprietary technology of the company. However, licensing proprietary technology is capable of losing some competitive advantages (J. Contractor 2013). For example, the company depended majorly on the technologies; it is possible for the company to lose the competitive advantages if the company licenses its rival company the core technologies of the product (Eapen 2012). There can be possibilities of the rival company to misuse the rights of the licensing provided by the licensee company. Therefore, in some specific situation it is possible for the company to lose the competitive advantage in terms of licensing proprietary technology. Licensing Proprietary Technology as the Perfect Strategy: Licensing proprietary technology primarily secures the competitive advantages in terms of the being the perfect strategy for the business operation of the specific company (J. Contractor 2013). There are some situations in the company as well as in the market that requires the licensing proprietary technology as the strategic solution for the company. For certain company that has more than one owner that is named with joint ventures. In this situation, the foreign investors who is interested to invest in the company would like to use the strategy of the licensing proprietary technology, as this strategy will help the company to expand smoothly and promptly as well as directly reduce the cost and risk for the investors. Conclusion: Therefore, it can be concluded from the above discourse that the licensing proprietary technology to the foreign competitors is the best way to give up the competitive advantage of an organization. The licensing proprietary technology of a company helps the same to use the rights of transferring products I terms of achieving the competitive advantages. However, despite the determination of the competitive advantages of the company, the licensing proprietary technology is capable of losing the competitive advantages in certain situations. On the other hand, the licensing proprietary technology can stand as the perfect strategy for the company in some specific situations that includes the foreign competitors as well as the foreign investors in the contemporary market. Reference: Campbell, B.A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage from human capital.Academy of Management Review,37(3), pp.376-395. Eapen, A., 2012. Social structure and technology spillovers from foreign to domestic firms.Journal of International Business Studies,43(3), pp.244-263. Contractor, F., 2013. Punching above their weight The sources of competitive advantage for emerging market multinationals.International Journal of Emerging Markets,8(4), pp.304-328. Lichtenthaler, U. and Ernst, H., 2012. RETRACTED: Integrated knowledge exploitation: The complementarity of product development and technology licensing.Strategic Management Journal,33(5), pp.513-534.