The licensee should begin developing a one-year business plan. The business plan should begin with a clear understanding of the brand positioning statements and the licensee category. The important objectives of the licensing agreement should also be mentioned in the business plan. This includes: Benefits of Licensing Creating a business and manufacturing a product require a lot of time, money, responsibility and risk. By laying off your business idea, you are transferring all these responsibilities and risks to another person. Licensing is ideal for the person or team that wants to continue inventing instead of creating and running a business. With the license, you also have the advantage of presenting your venture ideas to established companies, which are founded for the manufacture and distribution of products similar to yours; Such compatibility can increase your chances of success in the market. For most brand owners, Brand Licensing is an underutilized method of entering a new product category. However, we hope to be able to illustrate what brand licensing is and the many benefits it can offer licensees and licensees, as well as describe the entire brand licensing process as we have seen in the real world of business. For a company that has an excellent product but does not have the capacity to manufacture it, licensing is a great way to market that product. Entrepreneur says that, among the possible opportunities to market a product, licensing "offers the greatest potential return on investment and has the greatest chance of success." There are certainly advantages to licensing your company`s assets, but be sure to consider these factors when creating a licensing agreement: Jimmy covers more than 40 years in international, commercial and investment banking and nearly a decade as a major shareholder and CEO of a fast-growing production and distribution business in California. Today, Jimmy advises and advises entrepreneurs on business planning, capital markets and financing strategies.
Jimmy works with clients around the world in sectors such as financial services, real estate, manufacturing and hospitality. View details. After updating your brief on the requirements of the license model, let`s be brief on how it works. If this sounds like you, then you may be better off using a licensing model than a traditional business model for marketing your intellectual property. Licensing weighs on the marketing of your IP on the shoulders of another. Licensing agreements cover a large number of known situations. For example, a retailer could enter into an agreement with a professional sports team for the development, manufacture and sale of goods bearing the sports team logo. Or a small manufacturer could concede a production technology owning a larger company to gain a competitive advantage rather than investing the time and money to develop its own technology. Or a greeting card company can agree with a movie distributor to create a series of greeting cards that carry the image of a popular animated character. What a license looks like, a licensing agreement generally describes in detail what is granted and under what circumstances the licensee can use the technology.
The latter includes the type of license it will be. In exclusive licenses, only a licensee can use the technology under certain conditions (which also excludes the owner of the technology from use under the specific conditions of the license). Partially exclusive licenses indicate either the total number of licensees licensed or the exclusivity ends after a given period.