If you agree to a licensing agreement, you authorize another person or company to use your intellectual property for any of its products, including the name of the product or company, logo or other details. Small brands and small products can also benefit from licensing agreements. As long as the product or brand has some kind of value, whether within a given niche or at the regional level, it can be successfully licensed. 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? They hold a trademark or intellectual property (IP). You have identified licensees capable of manufacturing and marketing your products. You are in serious discussions with one or more companies. How do you make sure you negotiate a good deal? License – the agreement itself, including terms and conditions (time limits, territories) and the distinction of exclusivity. It is also important to break down all the methods in which the taker can use, sell, produce, sublicensing, divide or export the product. Curious about brand licenses? You are not alone. In today`s competitive market, brand licensing is virtually the norm for companies hoping to share their products with a wider audience.
The benefits are many, whether you are a large company or you are starting out as a local company. If your brand has value, even within a tiny niche market, licensing may be right for you. Protection against counterfeiters is another advantage of licensing. If a product is well known enough or if the brand becomes more well known on the market, those who want to get a part will start making similar products. By entering into a licensing agreement, you can stand ahead of counterfeiters and become more proactive in protecting the intellectual property for which you have spent time and money. This agreement also makes it easier to maintain the prestige of the brand, as you can limit product reduction and protect yourself from other potential value issues. Our trademark licensing model, designed by lawyers, includes 2 licenses/intellectual property – a shorter 16-page document for smaller, less complex contracts and a 40-page document longer for longer, more complex agreements. Both are modelled on the contract line of Newell-Rubbermaid, a leading provider of brand licensing. Licensing your company`s assets certainly has advantages, but be sure to consider these factors when establishing a licensing agreement: confidentiality – in addition, a sub-agreement may be proposed to continue to protect the licensee`s property. It`s the NDA, the confidentiality agreement.
This document prevents the licensee from sharing or discussing certain details of your product with third parties. NDAs are fairly easy to design and should be considered a mandatory component of your license agreement. As always, there may be drawbacks to success. Your brand may one day reach many people, or create too much activity, leading to counterfeiting attempts from other competitors. By allowing your brand at an early stage, you will learn to act proactively with safeguards to protect your intellectual property. Retailers also have the opportunity to be on both sides of licensing. You can license your product or brand to another company or you can choose to become a licensee and sell the products to another person or another company. It may also be helpful to lease the right to use your brand to a larger company or to use a combination of the two options in your business strategy.