In some industries, major companies often seek to ensure that there are multiple sources of supply of key strategic components. To achieve this objective they often press a key supplier to license a second source manufacturer to supply the component.
Agreeing to such an arrangement can be very high risk for the supplier, since it may in effect be creating its own competition. There may be an argument in certain situations that demanding to favourable license terms to a second source supplier from the first source is an abuse of monopsony or oligopsony power.