The main advantage for a licensor is the ability to use and improve their brand or property. A company may choose to license its brand(s) if it believes there is strong consumer adoption for brand extensions or products. For example, when Apple launched the iPod, there was an immediate need for accessories such as headphones, charging and syncing stations, and carrying bags. Apple decided not to manufacture these products and instead decided to have the products manufactured by a licensee. In this way, Apple could offer branded “headphones,” “iPod docking stations,” and “iPod socks.” Each is made by a separate company, but together it offers the consumer an elegant solution. All these accessories are sold by the licensees. The trademark licensing process consists of several phases. Not all brands are created equal, see what the brand licensing industry can do specifically for your business. Licensing is the process of renting trademark or copyrighted properties for use in connection with a product, service or promotion. The property can be a name, image, logo, graphic, saying, signature, character, or a combination of several different elements. Licensing agreements entered into by Owners and Licensees have the potential to exploit strong brands with in-demand products that create real value for both parties.

Businesses large and small make billions of dollars each year in licensed retail products. From “Toy Story” action figures to T-shirts with the Coca-Cola logo, the potential to use a brand to get a license or license for a popular brand is huge. “Brand licensing has become a business imperative for any brand owner or product manufacturer looking to take their business to the next level. It`s one of the best ways to create an experience-driven buying opportunity for customers to connect with popular brands in innovative ways. The glamour and appeal of licensed products for movies, TV shows, sporting events, celebrities, famous people and even fashion brands make them perfect for products from different industries and regions. A license agreement allows a company (a licensee) that markets a product or service to lease a trademark from a trademark owner (a licensor). Licensee`s responsibility is to produce, promote and distribute the Product, while Licensor receives royalties for its brand. For example: The huge popularity of Reese`s peanut butter cups led to an immediate need for other peanut-based chocolates. Instead of making other peanut chocolates, Reese`s opted for a brand license. Betty Crocker is licensed and handles production, sales and distribution due to her experience and expertise in the market.

This partnership has allowed Reese`s to generate more revenue by expanding its brand into uncharted and uncharted territory; In turn, Betty Crocker was able to increase her income by using the Reese brand, which seduced the masses. Trademark licensing is an established activity, both in the field of patents and trademarks. Brand licenses have a rich history in American business, beginning largely with the rise of mass entertainment such as movies, comics, and later television. The popularity of Mickey Mouse in the 1930s and 1940s led to an explosion of toys, books, and consumer goods depicting the adorable rodent, none of which were manufactured by the Walt Disney Company. In addition to the benefits for licensors, there are also benefits for licensees. Licensees lease the rights to a trademark for inclusion in their products, but do not share ownership of it. Access to leading national and global trademarks, as well as the logos and trademarks associated with those marks, provides significant benefits to the licensee. The most important of these is the marketing power that the brand brings to the licensee`s products. When brand managers enter or develop new product categories through licensing, they create an opportunity for a licensee to grow their business. Here is an example of the steps in the licensed product process: The answer is the trademark license.

Disney doesn`t make all the t-shirts or coffee mugs with one of their characters — thousands of other companies sign deals with Disney for the right to use their characters and other brands. And these companies take care of the essential details, such as the manufacture and manufacture of these products. As your brand grows, your customers` wishes and expectations grow with you. As a small retailer, it can be difficult to expand your business and product line in a meaningful way that meets the expectations of these customers. Licensing your brand is a way to bridge the gap between your manufacturing and product design capabilities and the products your customers are looking for. Here are some guidelines and considerations when entering into a trademark license agreement. You know your brand and audience better, but a qualified licensing agent can help you answer these questions and becomes indispensable in the next step. They gave the licensing agreement to Betty Crocker, who had experience and expertise in the field. Reese`s was able to enter new markets and generate new revenue, and Betty Crocker was able to increase sales by using the Reese`s brand name, which had wide mass appeal. Examples of intangible assets include a song (“Somewhere Over The Rainbow”), a character (Donald Duck), a name (Michael Jordan) or a brand (The Ritz-Carlton). A trademark license agreement requires a license agreement. A license agreement authorizes a company that markets a product or service (a licensee) to rent or lease a trademark from a trademark owner that operates a licensed program (a licensor).

[2] A walk through each shopping aisle illustrates the impact that licensing has both on the consumer and on an increasingly diverse range of retailers, brands and manufacturers. Licenses can completely extend a brand into new categories, areas of a store, or into new stores. It`s a way for brand owners to expand their current fan base and embark on new ventures without making big investments in new manufacturing processes, and allows retailers and manufacturers to stand out from the competition and offer consumers the hottest brands as well as increase sales. The leading international trade association for brand licensing is the Licensing Industry Merchandiser`s Association, which sponsors the annual Licensing International Expo. .