Definition of licensing
Licensing consists in regulating the temporary cession to a third party of the right to use and exploit not material assets (brands, copyrights, images) which are legally deposited and can be legally protected.
License is granted by a party called "Licensor" to another party called "Licensee". Licensing rights are normally acquired by the Licensee through payment of a fee (fixed or variables) to the Licensor.
Licensing as marketing leverage
Licensing can become an important marketing leverage for Licensees:
- represents an added value to products and services
- provides new elements of discussion in the phase of sell-in
- constitutes the foundations to increment the sell-out
- allows for widening the reference target
- allows the entry into new distribution channels
- provides new marketing communication opportunities