License example sentences

Licensor/franchiser is paid by the licensee/franchisee by way of fees fixed in advance as a percentage of production or sales turnover.Such lapses on the part of the licensee/ franchisee can cause severe losses to the licensor/franchiser.When a licensee/franchisee becomes skilled in the manufacture and marketing of the licensed products, there is a danger that the licensee can start marketing an identical product under a slightly different brand name.The firm that grants such permission to the other firm is known as licensor and the other firm in the foreign country that acquires such rights to use technology or patents is called the licensee.Freedom is not unlimited license to do what one wants.Since the business in the foreign country is managed by the licensee/franchisee who is a local person, there are lower risks of business takeovers or government interventions.Licensee/franchisee being a local person has greater market knowledge and contacts which can prove quite helpful to the licensor/franchiser in successfully conducting its marketing operations.This royalty or fee keeps accruing to the licensor/franchiser so long as the production and sales keep on taking place in the licensee's/franchisee's business unit.This can cause severe competition to the licenser/ franchiser.Over time, conflicts often develop between the licensor/franchiser and licensee/franchisee over issues such as maintenance of accounts, payment of royalty and non-adherence to norms relating to production of quality products.It may be mentioned here that it is not only technology that is licensed.In the fashion industry, a number of designers license the use of their names.