Answer:

A Major Advantage of Licensing Is: Passive Income

Licensing agreements allow companies to generate passive income from their intellectual property. This is one of the major advantages of licensing. Licensing offers an opportunity to leverage your financial resources and intellectual capital, while also providing you with a passive income stream. This can be especially advantageous in industries with high upfront costs, such as pharmaceuticals or software.

With proper licensing agreements, companies can realize a variety of financial benefits. For example, a company might license the rights to its intellectual property, such as patents, trademarks and copyrights, in exchange for royalties on sales of a particular product or service. This passive income can help to offset the costs of research and development, or provide additional funds for expansion or growth.

Licensing also provides companies with additional protection from unauthorized use of their intellectual property. Companies can seek out licensing agreements that restrict the use of their intellectual property by competitors or protect against unauthorized copying or use of their material. This helps to ensure that the company’s investments in their intellectual property are properly protected and compensated for.

The advantages of licensing are numerous, and companies should take full advantage of the opportunities that it provides. For companies that have the right mix of intellectual property and the right licensing agreements, licensing can be a great way to generate passive income, reduce risk, and protect their investments in the products and services they create.