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Development of strategies to enhance license relationships
> Licensor
> Licensee |
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| Brand license alignment |
 Brand License Alignment |
Most trademark licensing relationships are defined and evaluated based upon provisions in a license agreement contract. In the case of a brand extension license, there can be a lot at stake, including the health and vitality of the licensor's brand. Surprisingly, many license agreements do not include specific terms or requirements that reflect key brand and marketing related objectives. |
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| How much for the brand license? |
 How much for the... |
Corporate or brand licensing represents a growing share
of the many trademark license agreements developed each
year. Given the value of these brands, it's surprising
that few licensor's use a formal valuation process for
new license opportunities. Although valuation remains a hotly debated subject, a modified 'value in use' approach can help to determine the market value of brand extension
license opportunities.
For years, licensing has been used as strategy to generate revenue from established trademarks or brands. Indeed, royalty revenue remains one of the primary objectives of the licensor. That’s too bad, because for many licensors, royalties can be only a fraction of the value that is created by a thoughtful, carefully executed licensing program.
Consumer goods manufacturers are scrambling as a growing number of retailers gain control of powerful brands. Much to the dismay of brand marketers, retailers are securing licenses to develop exclusive products that attract more shoppers while they are reducing the shelf space devoted to the leading national brands.
An increasing number of licensors are extending their brands into new product categories. These brand owners are finding that brand extension licenses can provide substantial marketing benefits and can generate significant, ongoing royalty revenue. As a result, brand extension licensing continues to grow in food and beverage products.
Brand extension has become a major focus of many firms in the corporate trademark licensing business. Unfortunately, few licensors have the resources required to simultaneously evaluate and develop multiple brand extension licensed product categories. Product concept screening can help the licensing firm separate the winners from the losers. |
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