An understanding of the fundamental aspects of licensing is important whether you are a new licensor or licensee, or if you are seasoned in licensing but need insight into a specific licensing issue. Licensing consultation begins with the fundamental understanding of the relationship between parties and the rights and duties of licensor and licensee, to specific advice on provisions such as term, product, distribution, royalty payments, royalty reporting, pricing, exclusivity, advertising, product approval, and quality control, among others. CONSOR’s decades of licensing and consulting experience enable us to offer consultation and strategy for licensors and licensees, so that they can have an advantage in expediting profitability in the launch of a new licensing program or the expansion of a mature licensing program.
Licensing Alignment
Success in licensing requires alignment between the marketing objectives of the licensor and the business objectives of the licensee. Our Licensing Alignment service helps to identify and incorporate key performance indicators into the license agreements so they reflect critical business drivers of the licensed businesses.
Licensing Alignment is a tool that can help to create balance and provide proper focus for the licensed business. Most license agreements include standard terms such as the grant of rights, territory, and royalty terms. Determining appropriate royalty rates and minimum guarantees is important, but it is also critical to consider the real drivers of the business. Overemphasizing royalties can cause an imbalance that is detrimental to licensed businesses and relationships. Incorporating leading indicators such as advertising and promotion, instead of lagging indicators such as sales and royalty revenue, can provide a more effective way to plan and manage many licensed businesses.
Through our Licensing Alignment service, CONSOR principals work with licensors, licensees, and advisors involved in trademark licensing to strengthen each individual license agreement in order to maximize the effectiveness of the overall licensing strategy. In addition to restructuring existing license agreements, our professionals also assist in the planning stage for new agreements. We are happy to offer a courtesy consultation to interested parties.
