In a typical licensing agreement, the licensee undertakes to make intellectual property rights such as technology, brand name or licensee know-how available to the licensee. In exchange for the intellectual property of the licensee, the purchaser usually plays the donor a pre-feeding and/or a licence fee. A licence fee is an ongoing fee paid for the licensee`s right to use intellectual property. Most licensing agreements also deal with the issue of quality. For example, the licensee may enter into the contract conditions that require the purchaser to provide prototypes of the product, mockups of the packaging and even occasional samples for the duration of the contract. Of course, the best form of quality control is usually achieved before the fact – by carefully checking the reputation of the licensee. Another common quality provision in licensing agreements is the method of disposing of unsold products. If stock items are sold as cheap knockoffs, this can damage the licensee`s reputation in the market. A licensing agreement between a trademark holder and a manufacturer is an official document indicating that the manufacturer of a product is authorized to manufacture the product by the company or by the person who protected it. However, the trademark holder may choose the terms of the licence for this contract. A non-compete clause.
The licensee agrees not to allow anyone to compete with the licence in the area and period defined in the agreement. Consider the others „What-Sis. If you are working with a lawyer to write the contract, it is a good idea to now consider circumstances that could be a problem later. What happens if the licensee goes bankrupt? What happens if the licensee goes bankrupt? What happens if one of the parties is unable to meet its obligations? Can the licensee transfer his property to another party? What are the penalties for infringement? Character Licensing is another major licensing segment of the brand in India. The major players in the character licensing industry in India are Disney India, Viacom 18 and Cartoon Network Enterprises. Disney India-licensed characters include Mickey Mouse and Donald Duck. Viacom brought popular Nickelodeon characters like Dora the Explorer and SpongeBob SquarePants. Cartoon Network has a portfolio of characters like Ben 10, Powerpuff Girls, Mr Bean, Roll No. 21, We Bare Bears.
Brand Licensing in Italy began in the 1970s with very few licensing agencies. Apart from Disney, which had its own office on the market, all other major entertainment groups were represented by independent agencies. One of these companies, DIC 2 (Distribution International Characters), founded in 1973 by Gianfranco Mari, has contributed to the creation of licenses in Italy and has created great phenomena like He-Man and the masters of the universe, Marvel Comics, Star Wars, Hanna `Barbera characters, Zorro, Asterix and so on.