If you agree to a licensing agreement, you authorize another person or company to use your intellectual property for any of its products, including the name of the product or company, logo or other details. Small brands and small products can also benefit from licensing agreements. As long as the product or brand has some kind of value, whether within a given niche or at the regional level, it can be successfully licensed. Because of the legal basis they have to cover, some licensing agreements are quite lengthy and documents complex. But most of these agreements cover the same fundamentals. These include the scope of the agreement, including restrictions on exclusivity or territories; financial aspects, such as necessary advances, royalties and royalty calculations; Guarantees for minimum sales Calendars with “on-the-market” dates, contract duration and renewal options; the lessor`s rights to quality monitoring and control, including procedures to follow; Minimum inventories that need to be maintained and returns and allowances. 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. Start and End Date – Calculate and indicate when the agreement will come into effect and when the terms will expire. If you want to include the option to continue after the agreed terms expire, you can include it by agreeing.

Most licensee training programs begin with training that immerses licensees in branding and usage policies. They also cover the steps that takers must take to obtain approval for products, packaging and materials or communications bearing the brand identity. The first step in licensing a product or brand is to ensure that you have legal protection for your intellectual property.