Under a cross-licensing agreement, a firm can either request a royalty

QUESTION

Under a cross-licensing agreement, a firm can either request a royalty payment or license some valuable intangible property to a foreign partner.

Indicate whether the statement is true or false.

ANSWER

FALSE
Under a cross-licensing agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm.