Asked by Amanda Turner on Feb 18, 2024
Verified
One way that a company can protect its product is by licensing its innovation to a large organization with protection already in place.This inventor then receives royalties.
Royalties
A share of the income of a business paid by a franchisee to the franchisor.
- Understanding the importance of protecting intellectual property in business.
- Understanding the concept of royalties and their role in generating income for inventors.
- Recognizing the potential benefits of licensing innovations to larger organizations.
Verified Answer
BM
Brendan Mitchell
Feb 18, 2024
Final Answer :
True
Explanation :
Licensing a product to a large organization with established protection can help ensure that the invention is not copied or stolen by competitors. The inventor can then receive royalties from the licensed organization.
Learning Objectives
- Understanding the importance of protecting intellectual property in business.
- Understanding the concept of royalties and their role in generating income for inventors.
- Recognizing the potential benefits of licensing innovations to larger organizations.