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A licensing arrangement provides the opportunity for the brand owner and the manufacturer to share insights and knowledge across multiple disciplines including product development, marketing, R&D and sales. 10. The brand owner to capture royalty revenue through the manufacturer's sales of licensed product.

Brand licensing is the act of giving permission for another company to use your business's intellectual property (IP). Brand owners lease their patents, software, or characters to other companies. Licensees can re-sell the IP at a higher price or manufacture merchandise with the IP on it.

Accessories such as hats, ties, and the like are regularly made by licensees, as are home products, footwear, fragrance, eyewear, and many others. Other major players in the product licensing world are media and gaming properties, professional and collegiate sports teams, and food and beverage companies.

Licensing is used by brand owners to extend a trademark or character onto products of a completely different nature. Examples of intangible assets include a song ("Somewhere Over The Rainbow"), a character (Donald Duck), a name (Michael Jordan), or a brand (The Ritz-Carlton).

Licensing is used by brand owners to extend a trademark or character onto products of a completely different nature. Examples of intangible assets include a song ("Somewhere Over The Rainbow"), a character (Donald Duck), a name (Michael Jordan), or a brand (The Ritz-Carlton).

What is brand licensing? Brand licensing is the act of giving permission for another company to use your business's intellectual property (IP). Brand owners lease their patents, software, or characters to other companies.

First StepsIdentify the owner of the trademarked merchandise you want to sell.Identify the demographics that will pay you money for the licensed merchandise.Obtain permission from the owner of the trademark to sell the goods.More items...