By Establishing A Brand Name And Market Power Through A Licensing Agreement

In a typical licensing agreement, the licensee undertakes to make intellectual property rights such as technology, brand name or licensee know-how available to the licensee. In exchange for the intellectual property of the licensee, the purchaser usually plays the donor a pre-feeding and/or a licence fee. A licence fee is an ongoing fee paid for the licensee`s right to use intellectual property. Examples of licenses are available in many different sectors. An example of a licensing agreement is an agreement between software copyright holders to a company, which allows it to use computer software for their day-to-day activities. Licensing agreements cover a large number of known situations. For example, a retailer could enter into an agreement with a professional sports team for the development, manufacture and sale of goods bearing the sports team logo. Or a small manufacturer could concede a production technology owning a larger company to gain a competitive advantage rather than investing the time and money to develop its own technology. Or a greeting card company can agree with a movie distributor to create a series of greeting cards that carry the image of a popular animated character. Did you know that if you buy a pair of Calvin Klein underwear, it`s not really made by Calvin Klein? The only clothes that Calvin Klein makes itself are some of its women`s lines.

Any other Calvin Klein clothing you buy, including perfume and jeans as well as their famous underwear, are the result of a licensing agreement. The manufacturers of these products have authorized the Calvin Klein name and logo to sell their own products. Examples of intangible assets are a song (“Somewhere Over The Rainbow”), a character (Donald Duck), a name (Michael Jordan) or a brand (The Ritz-Carlton). An agreement for the granting of a licence requires a licensing agreement. A licensing agreement authorizes a company that markets a product or service (a licensee) to lease a trademark from a trademark holder who operates a licensing program (a licensee). [2] In addition to the details of all parties involved, the licensing agreements detail how licensed parties can use real estate, including the following parameters: In addition to the benefits to 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.

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