Wonder Cat Licensing (Scenario)
Wonder Cat is a popular, new cartoon series created by the U.S-based All Cartoon Channel (ACC). Currently, the only Wonder Cat item available for sale are shirts that are sold exclusively through the ACC Web site. The cartoon series is a big hit in China, and as a result ACC has been approached by a Chinese firm about a licensing agreement. ACC executives are considering the pros and cons of such an agreement before making any final decisions.
Which of the following questions would be more important to evaluate before ACC enters a licensing agreement with the Chinese firm?
◦ What other cartoon characters in the U.S. have been licensed to Chinese firms?
◦ Should the Wonder Cat shirts that were available on the firm's Web site be removed from sale?
◦ Will the Wonder Cat products made by the Chinese firm be available for sale on the ACC Web site?
◦ How much control will ACC be able to maintain over the use of the Wonder Cat brand?
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