Licensing Examples and Understanding Licensing Business Model – Licensing vs Franchising, Types of Licensing, Brand Licensing Examples, Licensing Agreement
Thank you for your emails, I really appreciate it. And Really Sorry For such a long break. I had a few things (like improving my reading speed from 300wpm to 700+wpm and in the dry run read 4 books 🙂 read this book and this one (in that sequence) if you also want an awesome reading speed) to take care off in the meanwhile thus MIA. I will compensate for this absence with this Monster Post (5,000+ words and counting)… Licensing Business Model.
Licensing business model is the favorite business model of the USA. As far as Shark Tank’s Kevin O’Leary and Lori Greiner are concerned it is their most favorite and second favorite deal to do respectively. In this licensing business model, the person (company) who invents/creates the product (called the licensor) doesn’t do anything but mint money (yes, if done effectively) and the person (company) who asks for the EXCLUSIVE rights (called the licensee) to market this product (and manufacture in most cases) does everything to make the product a hit.
In the licensing business model, As a monetary compensation for allowing the licensee to use their intellectual property (works fantastically well if patented), the licensor will receive a recurring income (called royalty) for every unit sold. The vehicle under the licensing business model through which the licensor acquires the right to use the IP, from the licensee is called a licensing agreement, and it is the basis for the licensing business model.