Among the main commercial components of a trademark licensing agreement are: developing a foolproof licensing strategy ensures that your product is not only protected, but will also benefit your overall brand. Here are a few steps to follow before entering into a licensing agreement: as soon as you pass the basics, a brand licensing agreement takes into account every detail that goes into the collaboration of two companies. For example, the licensee (the company that buys licensing rights for a trademark) often pays a portion of each sale of the product granted to the licensee (the mark is granted). Brand Licensing in Italy began in the 1970s with very few licensing agencies. Apart from Disney, which had its own office on the market, all other major entertainment groups were represented by independent agencies. One of these companies, DIC 2 (Distribution International Characters), founded in 1973 by Gianfranco Mari, has contributed to the creation of licenses in Italy and has created great phenomena like He-Man and the masters of the universe, Marvel Comics, Star Wars, Hanna `Barbera characters, Zorro, Asterix and so on. DIC 2 is still one of the largest independent agencies in Italy, representing various cartoon characters and famous brands. For companies that have big ideas but limited manufacturing methods, licensing is the best way to bring a product into a mass market while offering the greatest potential for return on investment. What happens if one of the parties is bankrupt? Or are they not able to meet their obligations? Can the licensee transfer his property to another party? What are the penalties for violating the agreement? Other common topics of the licensing agreement we deal with are: you know your brand and your audience better, but a qualified licensee can help you answer these questions and becomes indispensable for the next step.
If you or someone on your team has no experience negotiating licensing agreements, you risk catastrophic consequences unless you understand what the terms of standard licensing agreements mean. The best way to protect your brand is to work directly with an intellectual property lawyer, and start early. Make sure your brand`s assets are protected and protected from the start. You can then consider conceding them on the track. Limit licensing partners to one or a few people in each product category or geographic area. The Licensing Industry Merchandiser`s Association, which sponsors the annual Licensing International Expo, is the leading international trade association for trademark licensing. 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? No matter the size or small size of your distributor, the brand license is always a possibility on the track. That`s why it`s advantageous to understand the basics of what it means and how you can get a trademark license.
Whether you become licensed or licensed, it`s up to you, your brand and your goals. Brand licensing is a well-established company in both patents and trademarks. Brand licenses have a rich history in American business, especially from the rise of mass entertainment such as movies, comics and later television. Mickey Mouse`s popularity in the 1930s and 1940s led to an explosion of rodent-endearing toys, books and consumer products on them, none of which were manufactured by the Walt Disney Company.