What is Brand Licensing?
Brand licensing is an arrangement where the owner of a brand (the licensor) grants permission to another party (the licensee) to use the licensor's intellectual property (IP) in exchange for a fee or royalty. This IP can include trademarks, logos, characters, or any other distinctive features that are associated with the brand. The licensee typically uses these assets to manufacture, market, and sell products or services, thereby leveraging the brand's established reputation and consumer base. Both parties usually sign a legal document which outlines their respective roles, responsibilities and financial commitments.
The Importance of Brand Licensing
Brand licensing is a powerful tool for both licensors and licensees. For licensors, it offers a way to monetize their brand assets without directly investing in new product lines or markets. For licensees, it provides an opportunity to capitalize on the brand's equity, which can lead to increased sales, market entry advantages, and enhanced consumer trust.
Who is it for?
Brand licensing is suitable for all sorts of goods and services. Ranging from consumer products, F&B, fashion and lifestyle, publishing, live or location-based events, promotional activities, different types of services and the list goes on.
If you have specific questions about your industry and what types of brand licensing can work for your company, feel free to reach out to The Future Playground.
Know the WHY?
Around the world, companies successfully utilise brand licensing as a business strategy for generating growth and profitability.
As a first step, we ask our clients what business objectives they wish to achieve from brand licensing and then work with them to identify the correct IPs to match their goals.
