A license is an agreement through which a licensee leases the rights to a legally protected piece of intellectual property from a licensor – the entity which owns or represents the property – for use in conjunction with a product or service.
The property could be a name, likeness, logo, graphic, signature, character or a combination of several of these elements.
The concept of licensing is fast gaining acceptability with a number of international brands planning to cater to India via licensing.
Licensing prospects now exist in all spheres in India – Manufacturers from various industry sectors including apparel, consumer goods, toys, gifts, accessories, sports are keen on taking licenses. The licensee is able to keep the profits earn by their use of the licensed items. In return, the licensor receives an agreed-upon royalty out of those profits for the ongoing use of their items.
Benefits of Licensing:
- It creates an opportunity for passive income.
- It creates new business opportunities.
- It creates an easier entry into foreign markets.
- It creates self-employment opportunities.
- It offers the freedom to develop a unique marketing approach.