After years in the licensing game, managing global brands and launching local brands to expand sales and consumer engagements, there are three repeating and incorrect assumptions we contend with. As a Licensing Agency, we create innovative new consumer products, services and promotions for our Brand Owners. We are aware that for a Brand Owner to start licensing, they are hindered with these inaccurate ideas about licensing of their greatest assets.
1. Loss of Control
This is not an issue if the licensing strategy is robust and understood with your Agent. It is our job to create the deals and manage your Brand as per this strategy. We create this massive programme for all our Brand Onwer’s before any conversations with the market. A refined and agreed strategy determines the paramatres of your control over licensing.
Only once the strategy is signed off, does the focus then turn to your License Agreement. A well drafted agreement with an Intellectual Property Lawyer will seek to maintain control with the limits of brand use.
2. Licensing is Label Slapping
Wrong. Licensing can be overt or discreet depending on the outcomes each party wants to achieve. What if I shared that Nike doesn’t actually make their Boxing Shoes. They license them to another manufacturer/distributor/sales/marketing boxing shoe manufacturing company. Why? Boxing Shoes are not a core competency for the Nike company, but having leadership in the category remains the goal. So licensing with the best in class manufacturer to now create Nike branded boxing shoes fulfills this strategy. This is subtle and effective.
3. Licensing is the same as Franchising.
No way. Licensing is ‘leasing’ of your most valuable asset – your brand. Licensing can transform and unlock the intangible value of the brand you have carefully constructed by ‘loaning’ this to another third party to create incredible, desirable, lifestyle products in other categories and other territories for a fixed term when your own company lacks that experience and expertise. The Licensed Brand elements integrates into a manufacturer who already has their own skills, networks and expertise in a specific market and category to further develop the brand. Opportunities and skills that are too difficult or too expensive for you, Brand Owner, to create yourself.
Relationship is controlled by Brand Use.
Franchising is a business system in which the Franchisor provides the Franchisee with the operational framework in which to manage their business. Relationship controlled by business systems.
Untapped Agency is a Licensing Agent for Brand Owners, Licensees, Manufacturers and Retailers. We extend iconic brands, copyright, music, designs and trademarks into innovative, new consumer products, services and promotions.