CONSOR’s research indicates that success in licensing requires alignment between the marketing objectives of the licensor and the business objectives of the licensee. The company’s 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.
Through this new Licensing Alignment service, CONSOR works with licensors, licensees, and advisors involved in trademark licensing to strengthen each individual license agreement to maximize the effectiveness of the overall licensing strategy. In addition to restructuring existing license agreements, CONSOR principals also assist in the planning stage for new agreements.
Doug Bania, Director at CONSOR, believes the Licensing Alignment service can benefit a wide range of companies involved in trademark licensing.
“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,” according to Bania.
“Licensing Alignment is a tool that can help to create balance and provide proper focus for the licensed business,” said Bania. “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.”