Clothing Brand Licensing Agreement

If the licensee does not do so under the written license agreement, the licensor wishes to terminate the contract before the expiry of its term. Most contracts have three categories of termination: for example, film companies sell licenses to manufacturers, that is, licensees who make clothes, accessories, toys and electronics with the effigy of the characters in their film. Sports teams also sell licenses to companies that manufacture different types of products containing their team logos. If you allow another company to use your name, logo or image on its products, you are taking a calculated risk. Your brand is automatically associated with the quality and content of these products and, to some extent, is held responsible for them. For this reason, it is important to include the quality assurance terms in your license agreement. The license also defines the specific products to which the agreement is limited. You have it. In order to preserve the right to sell the product, the licensee pays you royalties to the licensor, either on the basis of a percentage of turnover or on a flat-rate basis. Depending on the type of product you`re outsourced, this extra income can come in handy during periods of low sales or seasonal curves. The agreement should also state how and when you are paid.

The licensee must pay you each time a licensed product is sold. Payment could come in a lump sum or license form, but the license agreement should use clear examples to explain the process. There should also be a minimum turnover target and guaranteed royalties that must be met or exceeded. As a retailer, you have the opportunity to be on both sides of the brand license. Depending on the specific goals you want to achieve, it may be a good idea to either license your trademark or the rights to another, normally larger brand (or both!) Developing a crazy-safe licensing strategy ensures that your product is not only protected, but will ultimately prove beneficial to your entire brand. . . .