What is Corporate Brand Licensing?
Where the owner of a corporate brand grants another company / manufacturer the right to use its brand or trademark in association with a product or service for an agreed time and within an agreed territory.
- Specialist companies acquire the right from the brand owner to develop, manufacture, market and distribute products bearing the brand under licence.
- The brand owner is compensated by being paid a royalty in the form of a percentage of the sales price of the licensed products.
- The brand owner retains full control at all times of the design, look and quality of the product and its packaging, as well as its marketing, positioning and the retail channels through which the licensed products are sold.
Brand Extension and Marketing :
- Extending a corporate brand into new categories, new areas of store or new stores altogether
- Marketing Support for the Core Product
- Entrée into new distribution channels
Trademark Protection in the Product / Service Category :
Brands only have trademark protection in a product category / “Trademark Class” if actively sold in the category – if the category lies vacant, others may claim rights to use mark.
Additional Revenue Stream :
A way for a brand owner to monetize its brand or IP with minimal cost and limited risk.
Benefits of Brand Licensing?
- Build on a brand’s core equities and reinforce the brand’s strategic initiatives
- Strengthen the relationship with existing customers and increase brand awareness among new customers
- Secure partnerships with best-in-class licensees through proactive licensee selection, meticulous due diligence and practical and involved licensee management
- Produce and distribute licensed products through appropriate retail channels, positioned at the right price and which have the appearance of a seamless extension of the core product
- Develop long lasting licensee relationships which results in profitable business built through gradual category extension and consumer brand permission
- A structured and disciplined approach, together with close and regular communication with brand owner and licensees is key to establishing long term and successful licensing partnerships