The world of licensing

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The idea of licensing is a proliferating business nowadays. A well-executed, strong licensing relationship brings benefits to all parties to the deal – property owners, licensees, their affiliates, retailers and, ultimately, consumers. Each of those parties has its own goals and aims that ultimately adds value to the final product or service.

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Licensors

There are many reasons for an intellectual property owner to grant a license:

  • Marketing support for the core business
  • Extending a corporate brand into new categories
  • Trying out potential new businesses or geographical markets with relatively small upfront risk
  • Maintaining control over an original creation

Licensees

Licensees lease the rights to a certain property for incorporation into their merchandise, but traditionally they do not share ownership in it. Nevertheless, licensing provides a number of important functions to them.

  • Gaining the consumer awareness and marketing benefit of a well-known brand, character, logo, design
  • Moving into new distribution channels
  • Reducing in-house costs
  • Enhancing authenticity and credibility

Source: http://www.licensing.org/education/intro-to-licensing/why-license/

Watch this video about licensing!