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Licensing information | How to...

In a nutshell

What is licensing?

The business of granting the right to use a legally protected trademark, copyrighted name, graphic, logo, slogan, likeness, or other similar intellectual property in conjunction with a product or promotion for a prescribed amount of time in a specific geographic area in exchange for a defined payment in the form of royalties or fees. In return, the trademark owner receives marketing benefits and earns royalties on the sale of that particular product or promotion.

In the business of character licensing the Licensors are typically film companies, TV production companies who own the rights to the property (character). Licensees are the companies who want to use these protected trademark or images in their promotions or on their products.

By adding a character to a product you turn a “regular product” into a complete new licensed product (character merchandising).

Why a license?

It is not allowed to use a copyrighted character or logo for a product or a promotion without the permission of the copyright owner/licensor. Such approval can be obtained -subject to the approval of the licensor/ copyright owner- through an official license agreement.

Character merchandising or branding is a specialism and a relative new (and very strong) marketing tool. In recent years, the number of licenses granted have increased significantly, and are increasingly popular with many retailers worldwide. 

The benefits of licensing for the licensor

Typical benefits for the licensor include increased character or brand exposure, additional revenue, and a stronger negotiating position with third parties such as TV, video and theatrical distributors. TradeMarc delivers strategic and thorough developed licensing programs for owners of high calibre brands including TV animated characters, lifestyle, corporate and globally recognised fashion and sports brands. We understand the emotive nature of brands and work with a variety of brand owners to define the direction they want to pursue with their property. We develop and manage licensing programmes in a high quality every brand deserves.

The benefit of licensing for the licensee

Typical benefits include an immediate increased of awareness of products and promotions and consequently an increased sales and revenue. Licensed products expand your customer base and provide a competitive advantage versus similar products in the marketplace. In markets in which low selling prices are common, a well targeted brand creates a differentiated offer. This opens the opportunity for more shelf space, better margins and increased sales.

As a licensee, it is therefore essential that you find the right brand to help you gain recognition, sales and profit. Teaming up with other licensees, recognized brands and their marketing campaigns gives a real competitive advantage.

TradeMarc Licensing can help licensees finding the right license with the specific consumer appeal you seek for, and provide advice on product categories and businessplan to expand in or into.

The Licensing Industry
“Licensing remains as one the most exciting activities of the marketing mix. Many brand owners are waking up to the idea that their brands have a value that can be exploited in areas outside their current existence. The core equities of their brands can be used to raise much-needed additional revenue which can contribute directly to their bottom-line.”

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