How does licensing a brand work?
Brand licensing is the act of giving permission for another company to use your businesss 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.
Does Gucci do licensing?
Specifically, many luxury brands license their brand names to firms (licensees) with the expertise to design, produce and sell licensed products. For example, Burberry, Gucci and Hugo Boss license their fragrance and/or cosmetics business to Coty one of worlds largest beauty and fragrance companies [Sandle, 2017].
What is the meaning of brand licensing?
Brand licensing is the act of giving permission for another company to use your businesss 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.
Which brands is the largest licensee in luxury and fashion eyewear?
Most of the luxury companies that you know from Chanel to, actually, Armani and all the others, do rely on a few partners in the licensing business. The first, the global leader in production and distribution of eyewear is Luxottica, an Italian company that was established in 1961 in Italy, by Mr. Leonardo Del Vecchio.
What are some examples of licensing?
Some examples of things that may be licensed include songs, sports team logos, intellectual property, software, and technology. Licensing agreements allow parties to control property and enter new markets without having to spend the money to do so.
What does it mean when you license a brand?
When you license your brand, you are giving another company permission to use your intellectual property on products they produce and sell. You can earn an upfront advance as well as royalties, which are calculated as a percentage of total sales or net profits, depending on the licensing agreement.
What is an example of brand licensing?
An example of a brand licensing agreement includes Reeses, who knew the large market for peanut-based chocolates, but instead of trying to create the products themselves, they licensed their brand to other manufacturers. They gave the license agreement to Betty Crocker, who had experience and expertise in the field.
What is the benefit of licensing to the brand?
Licensing will help increase the use and visibility of your brand name and raise consumer awareness in relation to the products/services offered under your brand. Depending on the networks and distribution streams of a licensor or licensee, this could mean docHubing new types of consumers and geographical locations.
What does it mean to license your brand?
When you license your brand, you grant the rights to a licensing partner who can manufacture, market and sell products bearing your brand name. Youll collect royalties from the arrangement and, oftentimes, an advance of those royalties in exchange for letting the licensee use your brand.
What are 5 examples of licensed products?
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.