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Licensing
Brand licensing in the fashion industry
14 March, 2019 by Alberto in Licensing

The marketing strategy of companies is not only developed in the economic sector for which they were born. Many brands go from being a consumer product to being part of the lives of many people. The feeling of belonging or engagement is one of the tasks that most companies study and work, especially multinationals.

I’ m sure we know someone who has a garment with the logo of a brand stamped. Or maybe we do not need to think about others and if we open our closet we will find some sweatshirt or T-shirt with some well-known logo, be it a drink, a musical group or a technology products company.

There is legislation that determines permits. Companies with a recognized and patented logo care a lot about how their stamped brand is displayed. Copyrights are applicable worldwide but even so, fraud is , unfortunately an habitual practice.

What is brand licensing?

The musical group The Beatles -or its label- does not manufacture all the t-shirts, postcards, posters or coffee cups with the figure of the four musicians crossing the pedestrian crossing. Many companies request the rights to The Beatles to use their name and image. And those businesses handle the essential details like producing and manufacturing those products.

The trademark license could be defined as the legally protected agreement through which a third party leases the use of the brand, name or image of the company. In short, and to explain it in a simple way, is a contract that allows a company to use the name or image of another legally.

The owner of the registered trademark and to whom “rent” the exploitation of the same, will work together. In general, the one who buys the rights to obtain a trademark license pays the owner a percentage for the sale of each product.

With all this, the brand is grown to reach a wider audience, stronger relationships are built with customers, diversify and increase revenues, and the brand is more protected against counterfeiting because they can be detected by expanding the geography in which the company is present.

Alberto

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