A licensing agreement is a contract between two parties (conedenters and licensees) in which the donor grants the purchaser the right to use the mark, brand, patented technology or the ability to manufacture and sell goods in the licensee`s possession. In other words, a licensing agreement gives the licensee the opportunity to use the licensee`s intellectual property. Licensing agreements are often used by the licensee to market their intellectual property. Licensing your brand essentially means partnering with another company – one of the main benefits of marketing partnerships is reaching a wider audience. Working with another brand gives you immediate access to its customers and target groups. The deliberate granting of a brand license offers your brand the immediate opportunity to develop strategically in a new demographic and geographical situation… They call him. Curious about brand licenses? You are not alone. In today`s competitive market, brand licensing is virtually the norm for companies hoping to share their products with a wider audience. The benefits are many, whether you are a large company or you are starting out as a local company. If your brand has value, even within a tiny niche market, licensing may be right for you. We have developed a flow diagram to demonstrate the licensing processes: another important element of a licensing agreement defines the timing of the agreement.
Many licensees insist on a strict marketing date for products that are granted to external manufacturers. Finally, it is not in the licensee`s interest to license a company that never markets the product. The licensing agreement also contains provisions relating to the duration of the contract, renewal options and termination terms. With a brand license agreement and as a licensee, you will generally receive royalties for each license product sold. Royalties will not generally reduce your business from $1,000 in sales to $1 million, but they can be a good way to create incremental value and diversify the way your brand can make money. When a brand gets big enough, counterfeiters are never far back. Licensing your brand can help you stay one step ahead of this curve and help you be proactive in protecting your intellectual property.