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TP FAQs : Positioning of a Licensed Manufacturer | 特许制造企业如何定位

Updated: Nov 8, 2022

A licenced manufacturer manufactures items under the terms of a licence agreement.

This manufacturer uses the intangible manufacturing assets the licensor owns, such as patents, product designs, manufacturing processes, and know-how.

The licenced manufacturer pays royalties for licenced intangibles, often purchasing raw materials and semi-finished goods on its behalf and maintaining inventories of completed goods and raw materials.

As a result, it is responsible for the risks of storing inventory and selling items, including the risk connected with demand and pricing.

The licenced manufacturer will typically own the facility and equipment required for manufacturing activities and invest in the workforce's training and development.

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