商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT international tradechap.26 some methods for selling know how.pptVIP

Some Methods for Selling Know-how Definition Know-how can be defined as confidentially held, or better, closely-held information in the form of unpatented inventions, formulae, designs, drawings, procedures and methods, together with accumulated skills and experience. The three methods used to sell know-how are licensing technical-aid agreements management contracts Licensing Firms hold proprietary rights to patents, trademarks, copyrights, production processes, and brand or company names and insignia. They can license others to use these rights. Advantages The major advantage of licensing is that it provides a low-cost, low-risk form of market entry. Indeed, there are instances where licensing may be the only method of entry available. Disadvantages The major disadvantage is that of having to police the license. Technical-aid Agreements Technical-aid and management contracts are written for specific services to be rendered by one firm for another. Management Contracts management contracts involve the use of expatriate personnel who are not citizens of the host country. Usually, but not always, they are citizens of the country where the parent firm is headquartered. Differences The management contract differs from a technical-aid agreement in that it provides the foreign-based firm with management control over the recipient, of course, this is not to say that foreign-based firms do not wield some control over placement of technology in a technical-aid agreement. Technical-aid agreements sometimes accompany licensing arrangements. * *