December 11, 2020...5:42 pm

Licensing Agreement In Marketing

Licensed companies in other parts of Canada or other countries expand your potential while minimizing your risk by using companies with the necessary manufacturing capabilities and marketing networks. For a company that has an excellent product but does not have the capacity to manufacture it, licensing is a great way to market that product. Entrepreneur says that, among the possible opportunities to market a product, licensing “offers the greatest potential return on investment and has the greatest chance of success.” This process accelerated, as movies and later television became a staple of the U.S. economy. The rise of brand licensing only began much later, when companies realized that consumers would actually pay money for products with the logos of their favorite brands on them. McDonald`s game, King burger T-shirts and even Halloween costumes of scary good humor have been commonplace. Subsequently, the extension of the brand made the brand licensing market much more lucrative, as companies realized that they could earn real dollars to lease their equity to manufacturers. Instead of spending immeasurable millions to create a new brand, companies were willing to pay a fee for the net sale of their products in order to lease the product of an established brand. Armor All car voids, Breyer yoghurts, TGI Friday frozen entries, and Lucite Nail Polish are just a handful of products with well-known brand names, which are manufactured under license by companies that are not manufactured with the companies that own the brand. 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. An example of a licensing agreement in the restaurant industry would be that a McDonald`s franchisee has a licensing agreement with McDonald`s Corporation that allows them to use the company`s branded and marketing materials. And toy manufacturers regularly sign licensing agreements with movie studios and give them the legal authority to produce action characters based on popular similarities of movie characters. Many sectors and types of businesses depend on licensing agreements. For example, companies that use software have a licensing agreement with the software owner. Fast food restaurants enter into licensing agreements with entertainment studios to create and distribute toys with popular characters. There are many ways in which a licensing agreement can significantly increase your business, including: Start by creating ownership. If you are selling or buying a license for a product, make sure that ownership of that product is clearly stated in the agreement.