License construction
License building is a legal term. It describes the reproduction of a product with the permission of the manufacturer, usually against financial compensation.
Defense industry
Emerging countries in particular often buy such licenses from companies in industrialized countries. In the military sector, such licensed buildings harbor a certain risk and negotiations about them are often accompanied by diplomatic negotiations.
In Switzerland it is a tradition not to buy a weapon system , but to manufacture it under license. For example, the FIM-92 Stinger was manufactured and further developed at RUAG . A total of 3500 guided missiles and around 492 launchers were manufactured.
Automotive industry
The BMW 3/15 PS (Dixi), which was produced until the early 1930s, was a license for the Austin 7 from 1909. From its founding in 1950 to the 1970s, Fiat vehicles were built under license at Seat . The type designation was mostly the same ( Seat 127 = Fiat 127 , Seat 1500 = Fiat 1500 ).
Up until the fall of the Wall in Eastern Europe, cars were built under license, especially in the socialist countries. So in Poland under the brand Polski Fiat the Polski Fiat 126p ( Fiat 126 ) and the Polski Fiat 125p ( Fiat 125 / 1500 ), in the USSR the Lada 2101 ( Fiat 124 ) and in Romania the Dacia 1100 ( Renault 8 ) and the Dacia 1300 ( Renault 12 ). A license was signed with the Volkswagen Group for vehicle construction in the GDR in 1984 , which enabled the 1.1 and 1.3 liter engines of the VW EA111 series to be produced at the VEB Barkas plant .
BMW was able to avert the impending bankruptcy in 1954 by reproducing the Iso Isetta of the Italian ISO group under license.
