The definitions, requirements and terms of a licensing agreement are important negotiating points. Using a robust model for brand licensing agreements as we propose can help you define the framework for discussion with licensees. Other common licensing issues we deal with are: And if a licensee enters into an exclusive agreement to find a licensee who does a much better job in the same geographic area, he would have moved into a weak partner. There are four basic types of IP: 1 / Copyrights: They protect original works in their form of tangible expression. 2 / Patents: They protect original inventions. 3 Marks: You protect words, names or symbols of goods and/or services. 4 / Business secrets: they protect methods, processes or systems, sensitive information, unpatented inventions, software, formulas and recipes and other knowledge. First tests of the product, regular checks of the quality of the product, sales control – everything should be detailed in the agreement. Who determines the price of the product? Can discounts be applied to products? The Licensing Industry Merchandiser`s Association, which sponsors the annual Licensing International Expo, is the leading international trade association for trademark licensing. In addition to the benefits for licensees, there are also benefits for licensees. Licensees lease the rights to a brand to be included in their products, but do not share ownership. Access to major national and global brands and the logos and brands associated with these brands have considerable advantages for the taker. The most important is the marketing power that the brand confers on the licensee`s products.
When brand managers enter or expand into new product categories through licensing, they create a chance for a licensee to grow his business. Below is an example of the steps in the licensed production process: It depends on the type of product and the licensed brand. In general, the licensee`s main concern is to generate revenue while protecting the brand from anything that could tarnish it, such as product quality or other concerns about the relevance of the brand. The value of the brand takes years to build, but only days to destroy. If lawyers are essential for legal language to be involved with clauses such as guarantees and compensation and violation, they will probably not be sufficiently familiar with the terms of the license agreement, including testing protocols, authorized channels, authorizations and quality controls to negotiate them properly on your behalf. It can be advantageous for everyone if the taker hires related companies or negotiators. It increases the scope of the product and total revenue, but it could also result in profit transfers and brand damage, as these related companies may not be as cautious with brand considerations as the taker. As a result, most licensees are subject to membership or under-distribution requirements.