NaturalShrimp Inc (SHMP)

[Matt1963]

Licensing is merely a revenue stream just like any other product or service sales contract. Usually the licensing agreement will have restrictive covenants included that prevent NS from directly competing with the licensee's customers. That means they gain revenue for the license to utilise the tech, but lose all of potential customers they could otherwise have approached directly.

Personally, if they license the tech to one of the bigger outfits and deprive themselves of future income from large key accounts, I think it could prove a disastrously restrictive strategy.

Might as well franchise the whole operation instead.