Trademark Licensing
Quick Summary: As a trademark owner, you can earn more money from your valuable brands by licensing your mark to other users, on your terms. A trademark license is an agreement between a trademark owner (the “licensor”) and a third party (the “licensee”) that allows the licensee to use the licensor’s brand. The rights of both parties are defined by a contract called a “Licensing Agreement.” Licensing can be a significant source of revenue for companies that have established brands.
Why Should You Consider Licensing Your Trademark?
Why Should You Consider Licensing Your Trademark?
You’ve got a valuable brand, and you spend time and money policing and maintaining it. A properly-constructed licensing agreement can both help you monetize your brand and expand the scope of your trademark rights.
What Are Some Examples of Trademark Licensing?
What Are Some Examples of Trademark Licensing?
Examples of trademark licensing abound. Have you ever purchased a T-shirt, toy, or gift item with a movie character on it? That Star Wars action figure you bought for your child might be manufactured by Mattel, but it’s made under a license from Lucas Licensing, which is owned by the Disney Corporation.
That Dallas Stars hockey jersey, beer mug, and window decal that you bought in the arena gift shop after the game? Those are all very common examples of a products manufactured under license. A trademark license allows the trademark holder to profit from the manufacture, distribution, and sale of products by the license holder, even when the trademark owner doesn’t have the interest in or the capability to manufacture the products themselves. It’s a great way to monetize your brand without doing any extra work.
Can I Earn Money By Licensing My Trademark?
Can I Earn Money By Licensing My Trademark?
Licensing is very lucrative. According to the publication Global License, in 2012, Disney Consumer Products reported $39.3 billion in worldwide retail sales of its licensed merchandise. Even though Disney does no manufacturing, distribution, or sales, Disney gets a piece of every product sold. Even assuming a mere 1% license fee, (usually, for retail product, the royalty is about 2% of the retail price) that’s an additional $400 million a year in revenue for Disney. That’s the power of trademark licensing.
How Can I Use a License Agreement to Monetize Trademark Infringement?
How Can I Use a License Agreement to Monetize Trademark Infringement?
Rather than playing “whack-a-mole” with trademark infringers, you might consider offering them a license agreement. A licensing agreement can be a win-win for both parties, because it allows the licensee — formerly an infringer — to transform into a legitimate brand partner. It also allows the licensor — formerly the injured party in a trademark infringement conflict — to earn money, dictate the terms of the trademark use, and expand their brand reach.
How Can I Use Licensing to Expand the Reach of My Brand?
How Can I Use Licensing to Expand the Reach of My Brand?
The license of your trademark to a third party is legitimate “use” under the trademark laws. This means that you can expand the number of International Classes for which you have trademark rights. Going back to the Disney example, Disney is known for entertainment services and for films. But it’s licensed characters are also applied to an endless assortment of consumer goods, such as shoes, clothing, keychains, sippy cups, costumes, plush toys and sunglasses. Every time Disney brings on another product with a licensed character on it, Disney expands the reach of its trademark empire.
Bottom Line: Licensing your brand to others can be a significant source of additional revenue for your company. Contact Trademark Licensing Attorney Angela Langlotz and let’s talk about how you can use licensing to monetize your brands and expand the scope of your trademarks.
Expand the power and reach of your brand by licensing your trademark.
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