What Is A Licensing Strategy?

What is an example of licensing?

Example: An example would include Walt Disney granting McDonalds a license for McDonalds to co-brand its McDonalds Happy Meals with a Disney trademarked character; (b) A license where a technology company, as licensor, grants a license to an individual or company, as licensee, to use a particular technology..

What is licensing How does it work?

Licensing involves obtaining permission from a company (licensor) to manufacture and sell one or more of its products within a defined market area. The company that obtains these rights (the licensee) usually agrees to pay a royalty fee to the original owner.

What does it mean to have a licensing deal?

A licensing agreement is a written contract between two parties, in which a property owner permits another party to use that property under a specific set of parameters. A licensing agreement or license agreement typically involves a licensor and a licensee.

What are the 3 P’s of licensing?

Licensing programs exist for three main reasons, also known as the three P’s—profit, public relations, and protection. You already know that licensed products are a lucrative source of revenue and that their sales promote a positive public image for the organiza- tions they represent.

What are the disadvantages of licensing?

Disadvantages of licensing patentsloss of control (partially or fully) over your invention.relying on the licensee’s ability to effectively commercialise your patent.risk of poor strategy or execution damaging the product success.poor quality management damaging your brand or product reputation.

What companies use licensing?

As a result, figures may be affected by recent changes in currency exchange rates.DISNEY CONSUMER PRODUCTS. … ICONIX. … Warner Bros. … MARVEL ENTERTAINMENT. … Nickelodeon & Viacom Consumer Products. … MAJOR LEAGUE BASEBALL. … PHILLIPS-VAN HEUSEN. … Sanrio.More items…

What are the advantages of licensing?

List of the Advantages of LicensingIt creates an opportunity for passive income. … It creates new business opportunities. … It reduces risks for both parties. … It creates an easier entry into foreign markets. … It creates self-employment opportunities. … It offers the freedom to develop a unique marketing approach.

Is licensing a good idea?

Licensing offers a balance of risk and reward, because it allows you to leverage the success of an already established company for distribution. … On the flip side, if you license a product to a company already doing those things, you can take a shortcut, and work your way into major retailers without as many hiccups.

How do I get a product licensing deal?

Below are tips we have learned along the way to help you land a product licensing deal:Know your stuff. … Know the downside. … Present like a pro. … Get it protected. … Submit smart! … Analyze your targeted licensee. … Don’t reinvent procedures. … Find a champion.More items…