LICENSED PRODUCTION

A direct commercial arrangement between a US company and a foreign government, international organization, or foreign company, providing for the transfer of production information which enables the foreign government, international organization, or commercial producer to manufacture, in whole or in part, an item of US defense equipment. A typical license production arrangement would include the functions of production engineering, controlling, quality assurance and determining of resource requirements. It may or may not include design engineering information and critical materials production and design information. A licensed production arrangement is accomplished under the provisions of a manufacturing license agreement per the US International Traffic in Arms Regulation.