Merchandise licensing
Merchandise licensing is a business practice where a company (the licensor) allows another company (the licensee) to produce and sell products using its brand, logo, or characters. This agreement typically involves a fee or royalty payment based on sales. For example, a popular movie franchise may license toys, clothing, or accessories featuring its characters, allowing the licensee to profit while the licensor expands its brand presence. This strategy benefits both parties: the licensor gains revenue and marketing, while the licensee can tap into established brand recognition to boost sales.
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Merchandise licensing is a business arrangement where a brand owner allows another company to produce and sell products featuring their intellectual property, such as logos, characters, or designs. The licensee pays a fee or royalty to the licensor for the rights to use the brand. This partnership enables the licensee to benefit from the brand's recognition and appeal, while the licensor expands their reach and earns revenue without directly manufacturing products. Common examples include toys featuring popular movie characters or apparel branded with sports team logos.