Licensing

Question 1

What is the GOAL with how companies can leverage licensing

Answer 1

To generate money (revenue) and create a win-win scenario for both providers and clients.

Question 2

What is licensing

Answer 2

The right to use another company’s brand, logo, or product to make money.

Question 3

The owner of the brand, logo, or product who gives permission to someone else to use it.

Answer 3

Licensor

Question 4

A company or person that gets permission to use someone else’s brand, logo, or product for marketing or selling.

Answer 4

Licensee

Question 5

3 ways to define Eligible Products:

Answer 5

• Product Item – One Specific Product
  ( i.e. – Under Armour Shirts)
• Product Line
  (i.e. – Under Armour athletic performance items)
• Product Assortment
  ( i.e. – All products produced by Under Armour)

Question 6

Rights for Specific Product(s) Granted to a Single Licensee

Answer 6

Exclusive (Scope of Exclusivity)

Question 7

Allowing multiple competing companies to use the same brand, logo, or product.

Answer 7

Non-Exclusive (Scope of Exclusivity)

Question 8

The 3 Agreement Terms

Answer 8

1. Eligible Products
2. Scope of Exclusivity
3. Geographic Scope

Question 9

3 things in Compensation

Answer 9

Fixed Fee
* “Signing bonus”
* Upfront fee (i.e. application fees)
* Reduces risk of licensor

Royalty
* Largest portion of cost
* Set percentage of total revenue

Minimum Guarantee
* Satisfactory return on relationship

Question 10

-Unauthorized Use of an Organization’s Trademarks and Logos

-Lower quality

-Similar Trademarks
Example: “ABA”
American Billiards Association; American Bar Association;
American Basketball Association.

Answer 10

Infringement

Question 11

Developing Licensing (Marketing) Plan

Answer 11

• Identify Licensable Intellectual Properties
• Establish Fee Structure
• Establish Selection Criteria
• Establish (Type) Terms of Agreement
• Engage in Compliance Review
• Market Surveillance
• Performance Review