Curious on what a brand licensing company is? Learn what they do and how to find the right brand licensing company for your brand in this guide.
What is a Brand Licensing Company?
A brand licensing company (aka a brand licensing agency) acts as an intermediary that connects major brands, trademarks, logos, characters, and other intellectual properties with companies that want to create products featuring those brands.
The core function of a brand licensing agency is to extend the reach of well-known brands by granting third-party businesses the legal right to use those brands on their products and marketing campaigns in exchange for upfront fees and ongoing royalties.
How Brand Licensing Works
Brand licensing involves two main parties – the brand owner and the licensee company that wants to leverage the brand.
The brand owner is the company or individual that controls the intellectual property rights to logos, trademarks, characters, celebrity names/likenesses, etc. Famous examples are Disney, Marvel, Cheetos, and iconic entertainers like Elvis Presley.
The licensee manufactures and sells products but doesn’t own rights to the brand assets they wish to feature. To legally use those brand logos, mascots, catchphrases, etc. on merchandise, marketing materials, promotions, and more, they need to obtain a license from the brand owner.
This is where brand licensing companies get involved. They represent the brand owners and/or product manufacturers looking to license established brands (licensee) and handles all aspects of the brand licensing process, including:
- Managing the brand’s intellectual property portfolio and licensing rights
- Identifying ideal licensing partnerships and merchandising opportunities
- Negotiating favorable usage terms, royalty rates, and contract length
- Coordinating design approvals to ensure brand consistency and quality control
- Promoting the brand to drive consumer awareness and demand
- Collecting and distributing royalty revenues back to the brand owners
By granting an official license and permission to use their brand assets, owners generate lucrative revenue streams from their brand equity without investing in manufacturing or distribution.
Benefits of Licensing Brands
Brand licensing provides significant benefits to licensees as well. Established brands have built-in customer recognition, trust, and marketing power. Licensed merchandise allows companies to leverage this brand equity rather than spend heavily promoting their own unknown brand.
Securing a brand license for your products gives you a competitive edge and higher perceived value. Brand-name products drive interest, buzz, and sales by instantly connecting with loyal fans and customers.
For apparel, accessories, toys, home goods, and other consumer products, branding is a major driver of purchase decisions. Companies of all sizes can benefit from brand licensing to increase brand awareness and ROI.
The Brand Licensing Experts
Broad Street Licensing Group (BSLG) is a leading brand licensing agency that represents some of the world’s most recognizable brand icons across entertainment, sports, art, publishing, and more.
With our unparalleled brand portfolio, licensing expertise, and industry relationships, we make it easy for companies to bring marketing campaigns, product lines, and promotional programs to life through brand licensing.
Whether you’re a major brand looking to monetize your intellectual property or a manufacturer wanting to create branded merchandise, we’d be glad to discuss how our brand licensing services can drive success.
Want to learn more? Contact us today to learn more about our comprehensive brand licensing solutions.
