6. What is licensing?
Licensing is the process of leasing a legally
protected (that is, trademarked or copyrighted)
entity – a name, likeness, logo, trademark,
graphic design, slogan, signature, character, or a
combination of several of these elements. The
entity, known as the property or intellectual
property, is then used in conjunction with a
product. Many major companies and the media
consider licensing a significant marketing tool.
7. Brand Extension
Licensing is a marketing and brand extension tool
that is widely used by everyone from major
corporations to the smallest of small business.
Entertainment, sports and fashion are the areas of
licensing that are most readily apparent to
consumers, but the business reaches into the
worlds of corporate brands, art, publishing,
colleges and universities and non-profit groups,
to name a few.
8. Licensing existing brands
Shark Tank example
Doing business in a specific category by using
an existing popular brand
Obtain the rights to use that brand in a
category through a legal license agreement
(discussed later)
12. Key things to know
Requires experience and credentials
Top focus on quality and sales strategy
A legal arrangement (need a lawyer)
$$$ upfront
Negotiations are key
Quality of the license matters
13. Start a business as a licensee
Identify a brand and the owner
Identify the product/service you want to offer
Research current deals
Create a short 2-3 page proposal
Contact licensing branch or broker
14. How to contact
MUST REVIEW: License Global
Great free magazine
Contact information of agents online and in
magazine
15. Discussions with brand
managers
Ask about existing deals
Check for interest in your product/service
Ask about (in email #3)
QA standards
Marketing standards
MRGs
Regional restrictions
Upfront fees
Duration/timeline
16. Submit a proposal
Marketing strategy
Sales/distribution strategy
Upfront fees
Royalty fees
Sales projections
Guarantees
CONVINCE THEM THAT YOU WILL MAKE LOT OF
SALES AND THEY WILL IN RETURN MAKE $$
17. License Agreement
Prepared by the licensor
Review with a lawyer
It is a legal contract
Sign and you are ready to go
Do not personally guarantee a thing
Form an LLC for all these relations
23. Become a Licensor
You have a super awesome brand and want to
license it out.
Licensing could be based on category or
region.
What do you have to do?
24. Become a Licensor
MAKE SURE YOU ARE PROTECTED (TM,
patents, copyrights, etc…)
Identify the value/worth of your brand
Identify what categories you want to be in
Get an agent or identify possible licensees
25. Become a Licensor
It is a lot more difficult to become a licensor
than a licensee
You need QA systems, accounting systems,
audit capabilities, legal structure, extended
insurance, $$ for marketing, etc…
26. Example
TM the name and brand
Develop a culture/experience
Show revenue models and profitability
Show ease of adoption and growth
Create a repeatable system
27. Example
The power of your brand when people ask for
it. (Montreal)
Tipsy Midwest expansion
28. Example
Create a licensing system
Upfront fees
Training and quality assurance
Royalty fees
Online support system
Financial system
Marketing strategy
Merchandise and designs
Broker partnership
