A multinational enterprise wishing to exploit a patent may choose to sell a foreign company the right to use the property rather than entering the foreign market itself. The sale of such rights is licensing.

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Randy Prieto · Accepted Answer

Final Answer : True, Explanation :  Licensing is a business arrangement in which one company gives another company permission to manufacture its product for a specified payment, effectively allowing the patent holder to exploit the patent through another company without entering the foreign market directly.

A multinational enterprise wishing to exploit a patent may choose to sell a foreign company the right to use the property rather than entering the foreign market itself. The sale of such rights is licensing.

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