Character Licensing

Character licensing is a business practice where the owner of a popular character—such as from a movie, TV show, or book—allows other companies to use that character in their products. In exchange, the companies pay licensing fees or royalties. This often includes merchandise like toys, clothing, or video games that feature the character. The licensing agreement outlines how the character can be used, ensuring the integrity of the brand is maintained. This practice helps expand the character's reach while generating revenue for both the original creator and the companies utilizing the character.