What You Should Know About Licensing Your Brand

Originally posted 2018-11-19 11:18:09

By Chloe Coska | amdlawgroup.com


What is a licensing agreement?

Licensing means renting or leasing an intangible asset to another party who want to use the brand. A licensing agreement grants the right to develop, manufacture, to market and sell a product or service associate with the brand. Licensing is a way to be engaged in new business without the cost of manufacturing, marketing or facilities etc…

Licensing is a tool widely used by major corporations but also small business, it is used in every sector from entertainment, sports and fashion to publishing, art, non-profit …

How does it work ?

The licensor (the brand owner) chooses the product to license and the logo. The licensor with the help of an agency finds and negotiates the license contract with a licensee (manufacturer, distributor…). Then, the licensee manufacture and sell the approved product to a retailer approved by the licensor. In exchange for the right to use the license property licensor receives royalties from the licensee.

Why license your brand?

There are many benefits of licensing your brand. Licensing enables companies to build their brand, unlock the brand latent value to satisfy other pending demands. For example, a non-profit association can give her brand to another companies to do, T-shirts, bracelet, bags or shoes. It, also, enhances the brand image and grows its value.

The merchandising of the Michael Jordan brand is one of the greatest examples in licensing.

It helps to increase brand awareness and its product, reinforce the brand message and positioning on the market. It attracts new customers. It helps protect trademark and generate revenue.


Image credit: www.brandingstrategyinsider.com