Have you ever heard about licensing?
Well, many times I’ve found myself talking about licensing with friends and business partners, and every time I had to explain what is it, and also what I was doing in our licensing project with Candy Crush.
So I’ve thought to collect more pieces of information about this interesting business practice.
First, licensing enables you to obtain and use intellectual property (“IP”) rights, in exchange for an agreed payment or fee.
A licensing contract involves 2 parties:
Licensor: A licensor is the owner of the intellectual property, and it gives to a third party the rights to develop products using the intellectual property.
I.E: Walt Disney (licensor) gives rights to sphero (licensee) to produce BB-8 s Star Wars toy.
Licensee: A licensee is a person, company etc to whom a license is granted or issued under defined terms with the licensor.
I.E: Moschino (licensee) gets a license from Warner bros (licensor) to develop a Looney Tunes’ inspired collection.
Now that the main components of a licensing deal are clear, let’s move forward, the licensing market is huge, according to Licensing.org in 2014 retail sales related to licensed product hit $241.5B.
But which are the main advantages in developing a product with a license with (just example) Batman elements?
1. You get a very recognizable brand that will facilitate sales, for you and for your buyers;
2. Online marketing is more clear, you can target Batman’s fan base on Facebook, Twitter and so on, and you can expand your customer base;
3. If you make a great product, maybe you can cooperate with your licensor to market these products, as your licensor will get a fee on transactions (it depends on the kind of deal); so everybody wins;
Then if you want to get a license, where do you have to go, to meet big licensors like Disney, Warner Bros, and many others?
2. You can contact Wowcracy team who is already working on licensing projects and can help you to get projects with other big licensors.
In conclusion, the licensing business practice can be a phenomenal opportunity for you and your brand, obviously, in order to launch a great licensing operation, you will need to develop a good plan, allocate a budget for promotion and choose the right licensor.
If you want to jump in in this business you can browse the web for more piece of information or say hello to our team, we would be more than glad to consult you and also to set for you the licensing project of your dreams.