History[ edit ] Brand licensing is a well-established business, both in the area of patents and trademarks. Trademark licensing has a rich history in American business, largely beginning with the rise of mass entertainment such as the movies, comics and later television. This process accelerated as movies and later television became a staple of American business.
Tap here to turn on desktop notifications to get the news sent straight to you. Which Is Right for You? To license, or not to license? Neither option is universally right or wrong. It all depends on which option is the best fit for you. Now it is time to expand. The most common way to grow a business is by overseeing each and every aspect of the company, the "ground up" method.
Most Fortune companies began as small start-ups whose entrepreneurial founders slowly developed the infrastructure, hired the staff, sourced manufacturers or built their own factory, and created distribution, sales, and marketing plans.
Or you can go another way: This differs from a royalty fee, in which you sell your idea outright in exchange for regular payment. Which option you choose - "ground up" or licensing - depends on a variety of factors, including risk, initial investment, and time to market.
Pros of Creating Your Own "Ground Up" Infrastructure If you are an operating person who loves the idea of owning the road you travel to success, then your choice is clear: Build your business from the ground up. My husband Stewart and I are operating people, and I bet for every other entrepreneur who falls into this category, the following benefits far outweigh the headaches associated with running a vertically integrated company.
Also if one vendor is working to your standards or your price point you can move to a new one of your choice. You have totally flexibility in meeting the demands of a changing marketplace.
No quarrels, no brainstorming ideas on brand direction. Because you alone control the product, you have final say over all aspects of the brand, which means you have sole control of its integrity. With licensing, even if you build watertight clauses into your contracts, your idea is never as soundly protected as when you keep it to yourself.
In a licensing business model, you have to make sure that your partners are honest and respect quality and integrity. Quality control was just one of the reasons that Monica Williams of Pacimals cited for not being "ready to sell the idea" and sticking with an in-house infrastructure.
In that case, the problems associated with building a business will zap your creative spirit. If the following benefits appeal to you, a licensing plan may be in your future.
Under a licensing agreement, the licensee the one who licenses from you handles all the manufacturing, and perhaps distribution and sales. Because a licensing business model allows you to have multiple partners for production, distribution, etc.
This is especially important if your idea is timely, such as if it is tied to a specific event Olympics, an election or trend the boy band du jour. Compared to in-house infrastructure costs, a licensing business plan requires a much smaller investment on you part.
With your partners covering other areas, you have more time to dedicate to your strengths, such as design or developing back-end products. Once she struck her licensing deals, Lolita, of Designs by Lolita, used her newfound time to expand her product line and to focus on marketing and sales.
Still stumped as to which route to take? Understanding your talents and business goals is key to the decision-making process."Our primary goal is to help companies—both property owners and licensees—use licensing as a strategic business tool to profit from intellectual property," Marty says.
"Brands, characters, and. Brand Licensing Europe brings together the entire European brand licensing industry for three days of relationship building, deal making and trend spotting. It is the only place to discover what the European licensing industry has to offer under one roof.
Licensing Program Strategic Planning Understanding Your Business and Brand DNA We recognize the immeasurable value of the trademarks we represent and as a result we are always protecting and seeking to enhance the value of our clients’ brand(s) through each license partnership we develop.
Definition of brand licensing: The leasing of a brand name to a company other than the owner of that particular brand. As an example, a beer company located in Europe could lease its brand name to an American brewer.
Brand licensing is a well-established business, both in the area of patents and trademarks. Trademark licensing has a rich history in American business, largely beginning with the rise of mass entertainment such as the movies, comics and later television.
If the following benefits appeal to you, a licensing plan may be in your future. Workload. Under a licensing agreement, the licensee (the one who licenses from you) handles all .