At its most basic, Brand Licensing is a contractual relationship between a brand owner (Licensor), and a manufacturer or retailer (Licensee) who develops and distributes a product or service under the brand name in exchange for a fee.
What is a brand licensing agreement
Brand licensing agreements are legal contracts that are drawn up between two parties. According to License Global, they enable one party (the licensor) to allow the other (the licensee) usage rights to their trademark, logo, name, brand, patent, likeness, or character.
How does licensing brands work
When you license your brand, you are giving another company permission to use your intellectual property on products they produce and sell.
You can earn an upfront advance as well as royalties, which are calculated as a percentage of total sales or net profits, depending on the licensing agreement.
What is a brand licensing model
Brand licensing is a way for brand owners to increase their current fan base and move into new businesses categories without major investment in new manufacturing processes.
It allows retailers and manufacturers to stand out from the competition and offer consumers the hottest brands as well as drive sales.
What is an example of brand licensing
An example of a brand licensing agreement includes Reese’s, who knew the large market for peanut-based chocolates, but instead of trying to create the products themselves, they licensed their brand to other manufacturers.
They gave the license agreement to Betty Crocker, who had experience and expertise in the field.
What does a brand licensing manager do
Licensing Manager oversees the licensing of employees responsible for the sale and marketing of insurance, loan, or investment products.
Ensures compliance with all applicable regulations; maintains all necessary records. Being a Licensing Manager may require a bachelor’s degree in area of specialty.
What makes a brand attractive for brand licensing
They approach licensing with purpose and commitment and share the following characteristics: They are authentic to the brand.
Packaging, product design language, brand messaging and quality all come in to play. They are legitimate whereby the licensed product design and quality are aligned with the brand.
Why is brand licensing important
If a brand owner chooses to extend a brand via licensing into a new category, the brand gains tremendous additional exposure in those categories in every retail store the product is sold.
When sold into major chain retailers, the brand can gain thousands of additional feet of brand exposure in each category.
How does licensing a brand name work
When you license your brand, you grant the rights to a licensing partner who can manufacture, market and sell products bearing your brand name.
You’ll collect royalties from the arrangement and, oftentimes, an advance of those royalties in exchange for letting the licensee use your brand.
What are the benefits of brand licensing
Licensing will help increase the use and visibility of your brand name and raise consumer awareness in relation to the products/services offered under your brand.
Depending on the networks and distribution streams of a licensor or licensee, this could mean reaching new types of consumers and geographical locations.
What is licensing of a product
Licensing occurs when a licensee obtains permission from a licensor to produce and sell its product or products within a certain market.
Referred to as the licensee, the party that obtains the rights to sell the product is usually required to pay the licensor a royalty fee.
What is the largest brand licensing company?
- The Walt Disney Company – $54 billion
- Meredith Corporation – $30.1 billion
- Authentic Brands Group – $13.8 billion
- WarnerMedia – $11 billion
- Hasbro – $7.8 billion
- NBCUniversal/Universal Brand Development – $7.5 billion
- ViacomCBS – $5.8 billion
How is licensing different from branding
How is licensing different from branding? Licensing isn’t branding because branded items don’t use another company’s trademarks, they only feature the logo of the manufacturer.
What companies use licensing?
- The Walt Disney Company – $54B
- Meredith Corporation – $30.1B
- Authentic Brands Group – $13.8B
- WarnerMedia – $11
- Hasbro – $7.8B
- NBCUniversal/Universal Brand Development – $7.5B
- ViacomCBS – $5.8B
- The Pokémon Company International – $5.1B
What are the benefits for a company licensing their brand to someone else
You get access to the experience and know-how of the company that developed the product.
This company may be much larger than yours, with development capabilities that you cannot afford.
You get to break into a new market with this new product, but with the benefit of the experience gained in another market.
What are the disadvantages of licensing for a brand?
- loss of control (partially or fully) over your invention
- relying on the licensee’s ability to effectively commercialise your patent
- risk of poor strategy or execution damaging the product success
- poor quality management damaging your brand or product reputation
What does licensing mean in marketing
Licensing Definition: A business arrangement in which one company gives another company permission to manufacture its product for a specified payment.
What is the difference between a licensed product and a branded product
Licensing is used by brand owners to extend a trademark or character onto products of a completely different nature.
A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer’s decision to choose one product or service over another.
How can a company utilize licensing
Licensing intellectual property increases a company’s ability to grow its business, launch new products and services, and expand into a wider range of geographic markets.
Companies are willing to pay substantial sums of money to use another company’s intellectual property in their own products and services.
Is licensing part of marketing
Licensing is a marketing and brand extension too! that is widely used by everyone from major corporations to the smallest of small business.
Entertainment, sports and fashion are the areas of licensing that are most readily apparent to consumers, but the business reaches into the worlds of corporate brands, art,
Which company is an excellent example of licensing
Examples are Toyota™, Ford™, Intel™, Apple™, Sony™, Canon™, Budweiser™, Kraft™, and millions more of such brands.
What does licensing mean in business
What is a Business License? A business license grants the owner the right to start and run a particular type of business in the city, county, state, or country that issues it.
It is a type of permit indicating the company has the government’s approval to operate.
What is licensing and its examples
Examples of licenses include a company using the design of a popular character, e.g. Mickey Mouse, on their products.
Another example would be a clothing manufacturer like Life is Good licensing its designs and brand in a certain country to a local company.
What is the purpose of licensing
79. The role of licensing is about regulating the carrying on of licensable activities.
80. The Licensing Authority will primarily focus on the direct impact of the licensable activities taking place at licensed premises on members of public living, working or engaged in normal activity in the area concerned.
What does a brand management team do
Key elements of the job are researching the marketplace to determine where the product or client fits in (i.e., analyzing competitive positioning, products, brands and spending); developing marketing and advertising strategies and managing those budgets; helping create designs and layouts for print and digital
What advantage does licensing provide to a consumer products manufacturer
Licensing offers immediate credibility and recognition, enabling licensees to enter new markets while enhancing sales of their core products.
Consider a tee-shirt manufacturer with specialty printing capabilities.
How does licensing work in the fashion industry
Simply expressed, a license gives the licensee access to the property without transferring ownership.
Licensing allows fashion brands to grow, complement and reinforce their brands, expand into new areas, and improve their image.
How do you get a product license?
- Invent an original product
- Research your market
- Do a patent search
- Consider filing a provisional patent application
- File a patent application
- Search for licensees
- Sign a licensing agreement
- Collect royalties
What is the brand management process
Strategic brand management revolves around building brand equity and ensuring its growth over time.
Therefore, the brand management process involves the planning, executing, and controlling marketing and branding strategies, including activities to promote brand equity building, measurement, and control.
How companies can successfully manage their brands?
- Set Rules
- Bring Employees on Board
- Include Third Parties
- Define Workflows
- Centralize Assets
- Facilitate Regional Marketing
- Promote Collaboration
- Bring Brand and Customer Experience Closer Together
What is a licensing strategy
Licensing is a transfer-related market entry strategy. It involves a company (known as the licensor) granting permission to a company in another country to use its intellectual property for a defined time period.
Citations
https://www.aipla.org/list/innovate-articles/licensing-intellectual-property-101-what-every-entrepreneur-and-business-owner-should-know
https://medium.com/@PeteCanalichio/why-do-manufacturers-license-brands-ddc44c3dfcc6
https://www.coursera.org/articles/business-development-manager
