Tips for Successful Trademark Licensing

A trademark licence is, in the final analysis, a business arrangement. The key to ensuring a successful outcome is to put in place a licence that is fair and beneficial to both licensor and licensee. A well-designed licensing programme can be an important tool to build the value of a brand, enhance sales of branded products and generate a significant income stream from royalties. The synergies that a licensing programme creates can greatly increase the exposure, and consequent public recognition, of a licensed trademark. Advertising and sales by licensees expose consumers to the core brand in new geographic markets or in new product categories. Not only can this lead to increased sales of the core product, but the greater public recognition of the licensed trademark can also significantly increase its value.