Licence, 1) a permission granted by government bodies to carry out certain economic activity. Under state-monopoly capitalism this can be a form of the direct state interference in certain economic spheres to further the interests of monopolies. The authorisation of licences for building new enterprises is a way by which many capitalist countries try to regulate the territorial distribution of production. Licensing is also a way of regulating foreign trade, as it implies permission granted by the state to individuals or companies to import or export goods. 2) Licence, permission to use patented invention, technology, expertise, trade mark, etc., by other individuals or establishments. Granting a licence is a business transaction regulated by a licence agreement stipulating the terms, rights and duties of the seller of the licence (licenser) and the buyer (licensee). The rapid growth of the trade in licences both within a given country and on the world market is a result of the increasing role of the scientific and technological knowhow in developing production under the scientific and technological revolution. The sale of a licence is an extremely profitable economic operation, as it provides profits without the necessity of incurring additional costs. Profits that companies make by selling licences cover much of the cost of scientific and technological research. Companies often sell licences for the fruits of their research which cannot be used in 205 the particular industry they are involved in. Selling a licence not only produces direct profits, but is, in current conditions, an important weapon in the struggle for markets, since those who purchase the licence are often committed to bying machine parts or raw materials from the licenser. Through sales of licences monopolies gradually establish control over other firms both at home and abroad. Licence operations also result in large savings for those who purchase them for in many cases it is less expensive to buy a licence than to bear research costs. The industrially developed countries are the main sellers of licences. The socialist countries, which have created an extensive scientific apparatus and accumulated a wealth of technical experience, are acquiring a constantly growing share of the international licence market. Litzenzintorg, an export-import firm, has been established especially for selling Soviet licences and buying licences abroad.