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How does geography come into play in a licensing agreement? give an example.

How does geography come into play in a licensing agreement? give an example.

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Geography has an important part to play in a licencing agreement. It involves the geography where the licensing rights will be exercised by the licensee. Unless geography information is not shared with the licensor, the correct estimation of cost, competition, and success cannot be made. A company often avoids giving license in close proximity to an already existing licensee as it will affect the business of both existing and new licensees. It can be understood with an example, suppose a company ABC has already taken a license to produce a specific range of furniture. If the company awards the license to another company XYZ that would be doing the business in the same geographical location, it would affect the business of both.

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