Licenses are legal permissions, approvals or authorisations granted by relevant regulatory bodies or authorities that enable a company to exercise certain rights or engage in specific activities. Acquiring licenses is often necessary to comply with regulations, industry standards and IP protection. Licenses can become intangible assets by helping a company establish credibility and demonstrate compliance, thereby enhancing its market value. Licensing can provide exclusive rights to use patented technologies, trademarks or copyrighted materials, enabling a company to differentiate its offerings, restrict competition and create new revenue streams. While it may involve costs, the acquisition of licenses strengthens a company’s intangible asset portfolio, builds trust with stakeholders and can leapfrog its competitive advantage in the marketplace.
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