Question

You are working in the finance department of Innotech Ltd (INT). The Company has spent $5 million

in research and development over the past 12 months developing cutting-edge battery technology
which will be incorporated into the electric vehicle market. INT now need to choose between the
following three options for bringing the product to market. These options are:
Option 1: Manufacturing the product “in-house” and selling directly to the market
Option 2: Licensing another company to manufacture and sell the product in return for a royalty
Option 3: Sell the patent rights outright to the company mentioned in option 2

Answer 1

I think option 1 is the best because it would be the most profitable rather than licensing another company to manufacture it and get the loyalty.