Magnira Chocolates, a company in Sparanthea, signed an agreement with Chocolate Town that enables Magnira Chocolates to sell Champ Candy in Sparanthea by giving royalty payments to Chocolate Town. Which of the following marketing strategies is illustrated in this scenario?
licensing T/F

True

Explanation:

A licensing arrangement is an agreement between two parties where one party allows the other party to manufacture its products for a specific payment called royalty.

In licencing agreement, the licencee is granted permission by the licenssor to use his intellectual properties such as copyright, patents, trademark etc. for the production of his or goods or rendering of his services in return for the payment of royalties.

Therefore, The agreement between Magnira company and Chocolate town can be referred to as a licensing agreement.      

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