Updated: Nov 15, 2022
The Licensed Distributor uses intangible assets he does not own but licenses them.
A license is a formal permission or authority to do something that otherwise would be forbidden, for example, using a brand, patent-protected technology, software or a database.
The Licensed Distributor decides on the quantity of purchased goods to sell it. So he bears inventory and market risk.
A Licensed Distributor performs similar functions and carries similar risks as a fully-fledged distributor.
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