Originally posted 2018-02-13 10:00:22
By Laura Schrauth|www.amdlawgroup.com
Brand Licensing is a great way for owners of intellectual property (copyrights, trademarks, and patents, primarily) to maintain legal protections in their works while making it possible for third parties to use and develop that work legally. Brand Licensing allows originators of intellectual property to grant non-exclusive rights in their creations, otherwise reserved solely for the originator, to third parties. At the same time, license agreements ensure that creators are paid royalties in exchange for permitting third party use.
Licenses exist everywhere! Restaurants, bars, venues, and even shopping malls license the music they play. Sports teams license their logos and designs to apparel companies. Inventors and scientists license their patents to tech companies and pharmaceutical labs. There is almost no limit to what can be licensed.
How does licensing work? Typically, a party seeking a license must negotiate with the owner of the rights to determine what a fair price is and what the scope of use of the product is going to be. Some industries use third-party services to handle licenses. In the music industry, for instance, musical composition licenses are handled by performance rights organizations, who distribute licenses, collect fees, and disburse royalties to the copyright holders.
Why license your brand? Licensing your brand is beneficial, not only in marketing, developing, and growing your products, but also in protecting them. Licensing allows owners to track use and maintain control over their brands. Being able to authorize the use of your brand while holding on to your rights as creator lets you know who is using your products, how they are using them, and whether they are using them to your preference or not.
Brand licensing is one of the many ways to monetize your protected brand.