Licensing Disadvantages of licensing Licensee controls marketing function and licensor does not gain expertise in local market No guarantee of entry after license expires Licensee may become local and international competitor of licensor No extension of license permitted by local government Licensee may create quality control and marketing problems for licensor Copyright 2001 by Harcourt, Inc. All rights reservedCopyright © 2001 by Harcourt, Inc. All rights reserved. 9-4 Licensing Disadvantages of licensing • Licensee controls marketing function and licensor does not gain expertise in local market • No guarantee of entry after license expires • Licensee may become local and international competitor of licensor • No extension of license permitted by local government • Licensee may create quality control and marketing problems for licensor