If you want to obtain a licensing agreement to utilize a well-known brand's logo or another intangible asset, then it's vital you have a complete understanding of the licensing industry. While obtaining a licensing agreement doesn't have to be a complicated process for either company involved, it is important for both parties to have a clear understanding of how the process works and the major pitfalls to avoid.
To help your chances of obtaining the licensing agreement you seek, here are some tips:
Tip: Expect Your Licensee to Want Prototypes
When you approach a brand and ask to license their intangible asset or logo, you should expect them to ask to see prototypes similar to the products you plan to produce. When you go to this first meeting, it's vital for you to bring along high-quality examples rather than simple sketches or half-completed products. Your goal is to impress the brand enough with your offering that you make them want to let you put their valuable name or images on your work.
Tip: Be Prepared with Projections and Supporting Documents When Approaching a Company
When you approach a company and ask to form a partnership via a licensing agreement, you need to be prepared for the meeting by bringing along sales projections. After all, brands want to make money, and if you can't show them how your partnership will benefit their bottom line, then it's likely they won't want to work with you. However, if you bring a solid projection with backup documentation, then your chances are a whole lot better.
Tip: Read an Educational Textbook on the Licensing Industry
Though you can always hire lawyers and other experts to assist you with the legalities of the license agreement process, ultimately, the more you know about it, the better things are likely to turn out in the end. Thankfully, there is plenty of information online where you can read and watch instructional videos about product licensing and the licensing industry.
Additionally, it's always advisable to purchase a licensing industry textbook used in a college-level class on this topic. By reading the textbook, you will have a more comprehensive understanding of the industry than what you can cobble together yourself from just websites and videos. Finally, when you purchase a licensing industry book, make sure you get one published within the last year to ensure the information it contains is current.
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