Brand Licensing For Dummies E-Book

Steven Ekstract

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 365

Veröffentlichungsjahr: 2025

Beschreibung

Your guide to profiting from the world of licensing

The brand licensing business is everywhere, turning intellectual property in sectors like entertainment, sports, and fashion into consumer products. Brand Licensing For Dummies offers advice from a pair of the leading experts on licensing to anyone entering the business of connecting content owners with product creators. In this clear guide, you'll learn about the inner workings of licensing and how both licensor and licensee benefit. Discover how to identify opportunities, negotiate deals, market licensed products, and navigate the legalities of licensing. Licensing gurus Steven Ekstract and Stu Seltzer bring decades of experience to this guide, demystifying the world of licensing and teaching you all about the win-win partnerships that allow licensors and licensees to do the things they do best.

• Discover why licensing is valuable to licensors and licensees alike
• Explore licensing agreements and different types of deals
• Learn how to spot a valuable licensing opportunity
• Negotiate solid licensing deals using the latest strategies

This book is a must for brand managers, licensing executives, intellectual property attorneys, product developers, marketing managers, and business owners. Whatever your role, Licensing For Dummies will give you practical guidance, legal insights, and strategic approaches to the dynamic landscape of licensing agreements and intellectual property management.

Leseprobe

Brand Licensing For Dummies®

To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Brand Licensing For Dummies Cheat Sheet” in the Search box.

Table of Contents

Cover

Title Page

Copyright

Introduction

About This Book

Foolish Assumptions

Icons Used in This Book

Beyond the Book

Where to Go from Here

Part 1: Getting Started with Licensing

Chapter 1: How Brand Licensing Works

Getting a Bird’s-Eye View of Brand Licensing

Seeing Why So Many Top Companies Love Brand Licensing

Deploying a Brand Licensing Strategy

Brand Licensing Includes Products, Services, and Experiences

Navigating Digital Licensing: The New Frontier

Bringing Together Brand Collaborations

Chapter 2: Probing Branding: Why People Buy

Defining Branding

Investigating the Ingredients of Branding

Breaking Down Why Branding Is Important

Trusting in Brands

Emotional Branding: Creating Connections That Last

Building Brand Trust with the Purchase Pyramid

Tapping into the Power of Brand Licensing

Noting Three Key Brand Licensing Principles You Can Apply Right Away

Chapter 3: Where on Earth Do Brands Come From?

Recognizing Top Brand Licensors

Eyeing Entertainment Licensing for Consumer Products and Experiences

Finding Opportunity in Entertainment

Tapping into Brand Licensing for Products of All Kinds

Bringing a Product Back to Life: Zombie Brands

Chapter 4: Exploring Licensing Trends and Innovations

Tracking the Rise of the Brand Collaboration

Digital Licensing: Finding Opportunity Online

Seeing How Video Game Brands Are Winning with Licensing

Growing Opportunity in Cannabis Branding and Licensing

Maximizing YouTube Celebrity through Licensing

Connecting with a Brand through Experiential Licensing

Part 2: Diving into Licensing

Chapter 5: Navigating the Licensing Process

Knowing Where to Research Licensing Opportunities

Understanding How to Match Product to License

Immersing Yourself in the Licensing Trade

Developing Relationships in the Business

Chapter 6: Negotiating the License Deal

Connecting with the Brand Owner (Licensor)

Using Your Research to Your Advantage When You Make Contact

Finding and Hiring an IP Attorney

Crafting and Submitting Your Licensing Proposal

Advancing to the Next Stage: The Licensing Agreement and Term Sheet

Discussing Additional Terms

Knowing When to Walk away from a Bad Deal

Finalizing the Long-Form Legal Agreement

Chapter 7: Getting Your First Licensed Product Up and Running

Designing Your Product

Finding the Right Manufacturer for Your Product

Crafting a Compelling Package that Meets Licensor Requirements

Developing Your Pricing Strategy

Getting the Word Out through Marketing and Public Relations

Tracking Sales and Royalty Reporting

Hiring a Licensing Manager to Address Growth

Chapter 8: Developing Retail

Understanding What Retailers Want

Comparing Wholesale versus Retail

Following the Channels of Retail Distribution

Finding the Best Retailer for Your Product

Evaluating Brick-and-Mortar and E-Commerce Options

Developing Marketing Promotions for Consumers

Part 3: Forging and Maintaining Strong Licensing Partnerships

Chapter 9: The Key Points in a Successful Partnership

Building Strong Partnership Teams

Developing and Maintaining Relationships with Licensors

Chapter 10: Keeping Your End of the Deal

Reporting and Paying Royalties

Dealing with an Audit of Royalty Payments

Addressing Administrative Tasks in Licensing

Part 4: Maximizing Sales through Licensing

Chapter 11: Selling Your Licensed Products

Peeling Back the Layers of a Licensing Business

Understanding Aspects of Retail Business Development

Setting Up Your License Agreement for Retail Success

Watching Out for Challenges in the Market

Chapter 12: Marketing Tools That Boost Retail Sales

Taking Direction from Your Partners

Using Social Media Marketing to Reach Your Target Audience

Distinguishing Customers from Fans and Superfans

Chapter 13: Globalization of Brands

America: Land of the Free, Home of the Brand

Setting Your Sights on the Global Market

Securing Licenses for International Markets

Chapter 14: The Future of Brand Licensing

Learning from the Past to Predict the Future

Riding the Technology Wave

Examining Emerging Tech Shaping Licensing

Culture Meets Commerce: Seeing How Trends Shape Licensing

Part 5: The Part of Tens

Chapter 15: Ten Do’s (and Don’ts) for Licensing

Do Thorough Research on the Brand Opportunity

Do Plan Properly

Do Set Realistic Financial Expectations

Do Walk Away from Bad Deals

Do Leverage the Licensor’s Marketing Power

Do Build Strong Relationships

Do Stay Compliant with Licensing Agreements

Do Invest in Quality Legal Support

Do Consider Hiring a Licensing Consultant

Do Consider the Risks

Chapter 16: Ten Essential Tips for Licensors

Develop a Strategic Licensing Plan

Invest in Style Guides and Presentation Materials

Join the Licensing Community

Ensure Your Trademarks Are Protected

Stay on Top of Tracking and Optimizing Licensing Revenue

Consider Hiring a Licensing Agency

Keep Your Brand Safe and Successful by Managing Licensing Risks

Plan for a Long-Term Investment

Strengthen Your Partnerships by Hosting a Licensing Summit

Expand Your Licensing Program Globally

Chapter 17: (Nearly) Ten Brand Licensing Areas

Entertainment and Character Licensing

Corporate Brand Licensing

Sports Licensing

Fashion and Apparel Licensing

Celebrity and Influencer Brand Licensing

Music Brand Licensing

Art and Museum Licensing

Nonprofits and Licensing

Index

About the Authors

Connect with Dummies

End User License Agreement

List of Tables

Chapter 1

TABLE 1-1 Famous Successful Brands

Chapter 6

TABLE 6-1 Royalty Rates

TABLE 6-2 Points of Negotiation

Chapter 8

TABLE 8-1 The Three-Star Process

TABLE 8-2 Noting Differences between Seller Types

Chapter 10

TABLE 10-1 Sample License Audit Provisions

TABLE 10-2 Administrative Tasks in Licensing

Chapter 13

TABLE 13-1 Licensing Revenue for Media Franchises

Chapter 14

TABLE 14-1 Technology Trends Impacting Licensing

List of Illustrations

Chapter 2

FIGURE 2-1: The purchase pyramid allows brands to build trust with their custom...

Chapter 9

FIGURE 9-1: The licensing relationship triangle.

Chapter 11

FIGURE 11-1: This one’s funny because it’s true!

Guide

Cover

Table of Contents

Title Page

Copyright

Begin Reading

Index

About the Author

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Brand Licensing For Dummies®

Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com

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Introduction

Brand licensing occurs when one company lets another company use legally protected (trademarked or copyrighted) intellectual property (IP) on products, services, or experiences. As a business, brand licensing has seen significant growth since the beginning of the 2000s. Consumers have transformed into fans of brands, and the Internet has supercharged the business of brand licensing through globalization, speed to market, e-commerce, and new forms of digital engagement.

The fascinating world of brand licensing currently represents $365 billion per year in retail sales of licensed consumer products and experiences and is growing at a rate of 4 percent a year. From cradle to grave, brand licensing reaches into every area of consumer products, services, and experiences. If you’re reading this, you’re on your way to becoming a licensing insider. The business of IP licensing is still relatively young, and opportunities abound for entrepreneurs looking to cash in on famous brands for their products and services.

In uncertain times, brands have become the trusted anchors for consumers — the one trustworthy constant that keeps them moored in safe harbors. This status is why brand licensing continues to grow. More and more brands are recognizing the power of brand licensing and jumping on board. This growth provides significant opportunities to companies interested in brand licensing.

You can find quite a few books published on the topic, but they tend to be dry and technical. We’ve written Brand Licensing For Dummies to provide an easy-to-understand overview of the licensing business to help you in your journey.

About This Book

Brand Licensing For Dummies is your guide to successfully navigating the world of brand licensing. We’ve written this book to help you to quickly and easily understand the ins and outs of brand licensing and make your licensing journey smooth and successful. From understanding the requirements necessary to acquire a license to finding a retail partner to sell your licensed products, this book covers it all.

Brand Licensing For Dummies provides you with info on topics like these:

Taking advantage of brand licensing to grow your business

Finding the right brand for your product

Identifying who the major brand players in the business are

Recognizing pitfalls to avoid when entering the licensing business

Negotiating a licensing deal

Getting your licensed product sold at retail

This book guides you through these subjects and plenty of others. We bring you up to speed on how to successfully navigate your brand licensing business journey.

Foolish Assumptions

We’ve made only one assumption about you, dear reader, while writing: that you’re interested in brand licensing and want to find out more, whether you’re reading this book to help you develop a brand licensing strategy for your products or simply to discover more about the brand licensing business in general.

Icons Used in This Book

As you go through this book, keep an eye out for the following icons in the margins:

This icon highlights small pieces of advice that can help you understand key information about brand licensing.

The Remember icon points out information that’s particularly useful. These nuggets will come in handy to you as a new licensee, so pay close attention to them!

Look out when you see this icon; it prepares you for potentially detrimental situations to be aware of.

Beyond the Book

You can find even more brand licensing info to delve into online at Dummies.com.

Check out this book’s online Cheat Sheet, which includes helpful tips for licensees such as do’s and don’ts for licensing deals, questions to ask before signing your licensing contract, and more. Head to www.dummies.com and type Brand Licensing For Dummies Cheat Sheet in the search box.

Where to Go from Here

Feel free to skip around to the chapters that contain the information you’re most interested in. If you’re totally new to brand licensing, you may want to start with good ol’ Chapter 1 for an overview. Chapters 5 and 6 help you research and negotiate that first license; after you have it, Part 3 can help you keep it by nurturing lasting relationships with your partners.

When you have the nuts and bolts of licensing down, you’re ready to go out and find your first licensing deal. Start by looking into all the different IP available for licensing.

Part 1

Getting Started with Licensing

IN THIS PART …

Get a handle on how brand licensing works.

Make the connection between branding and why people buy.

Understand where brands come from.

Get up to speed on licensing trends and innovations.

Chapter 1

How Brand Licensing Works

IN THIS CHAPTER

Introducing brand licensing

Showcasing why businesses love brand licensing (and you should too!)

Looking at the strategy of brand licensing

Breaking down the major licensing categories

Collaborating with other brands

Welcome to the world of brand licensing, and specifically to Brand Licensing For Dummies. In the next 16 chapters, we provide you with an easy-to-understand overview of the brand licensing business.

To kick things off, this chapter gives you the big-picture view of why brand licensing can be a game-changer for a product you make (or plan to make). But what exactly is brand licensing, what business practices does it involve, and why do companies do it? We break it all down here; and don’t worry, we’ve got plenty more details throughout the book.

Getting a Bird’s-Eye View of Brand Licensing

Here’s how brand licensing works: A company owns intellectual property (IP) — also called the brand — that builds a strong positive emotional connection with consumers. Over time, people develop an affinity for the brand. That connection makes licensing a powerful goal for expanding a brand’s reach and impact.

Brands license for several key reasons:

Boosting consumer engagement by partnering with businesses that can reach a wider audience

Tapping into new markets by licensing products that appeal to different demographics and are sold through different marketing channels

Driving sales and brand visibility by creating new products or experiences that keep the brand fresh and top of mind

To make brand licensing work, IP owners team up with key players to get their products into the hands of consumers. Each member of the licensing squad has a specific role:

The licensor:

The brand owner who holds the intellectual property and grants the licensee the right to use it.

The licensee:

The manufacturer or service provider who licenses the brand to use on its products or services. In return, it pays the licensor a

royalty

(a percentage of sales).

The sellers:

Retailers, wholesalers, and distributors who help get the licensed products or services into stores, online marketplaces, and ultimately, into customers’ hands.

When these three work together, brand licensing becomes a powerful business tool that benefits everyone involved!

Seeing Why So Many Top Companies Love Brand Licensing

The reason so many companies use brand licensing is pretty simple: It’s an incredibly powerful marketing tool. When done right, licensing boosts a brand’s visibility, strengthens its reputation, and — unlike traditional marketing — actually generates revenue (through royalties paid by licensees) instead of just costing money.

Licensing as a marketing powerhouse

To put licensing’s marketing potential in perspective, here’s how other common marketing tactics work:

Advertising:

This marketing aspect can include anything from print ads in newspapers and magazines to billboards, TV or radio ads, or even ads online. Companies can spend millions here, but after the money’s spent, it’s gone.

Social media posts and campaigns:

Platforms such as Instagram, Facebook, and YouTube connect brands with customers, but effectively managing campaigns requires a dedicated social media team to handle the posts.

Email marketing:

Sending emails with special offers and sales to customers to keep the brand fresh in their minds is a great way to encourage repeat buyers. However, developing and maintaining an email database and constantly updating it requires significant time and investment.

Marketing analytics:

Tracking customer behavior helps refine marketing strategies, but it requires specialized software and trained experts to interpret the data.

Search engine optimization (SEO):

Ensuring a brand ranks high in search results helps drive traffic; however, optimizing websites and content requires ongoing work by SEO specialists.

Public relations (PR):

Gaining media attention through press releases and earned media helps maintain visibility, but PR efforts require an in-house team or external agency.

Unlike these other strategies, licensing allows a brand to expand into new products, reach fresh audiences, and generate revenue at the same time — all while strengthening customer loyalty.

Brand Licensing 101: How Coca-Cola capitalizes on its brand

Ever wonder why you see so many Coca-Cola hoodies, T-shirts, and caps? It’s not just fashion; it’s smart business! Coca-Cola is a master at brand licensing; the following sections break down how.

Step 1: Spend big to make big

Coca-Cola knows that advertising equals sales. In 2023, the company spent a whopping $5 billion on ads — TV, social media, billboards, you name it. That was 20 percent more than in 2022. But it worked. Its net operating revenue (a fancy term for total sales) hit $46 billion that year.

Step 2: Turn fans into free ads

Coca-Cola goes beyond selling drinks by licensing its brand for all kinds of products. Its favorite? Fashion and apparel. Sixty percent of Coca-Cola’s licensing business comes from clothing.

Think about it: When someone wears a Coca-Cola hoodie, they’re a walking billboard for the brand. But here’s the genius part: Instead of paying for the ad, Coca-Cola gets paid!

Step 3: Be selective

Even though Coca-Cola makes billions from licensed products, it doesn’t just slap its logo on anything. It carefully chooses licensing partners to protect its brand.

Too much licensing can flood the market and weaken a brand’s image. That’s why Coca-Cola sees licensing as a marketing tool first and a money-maker second.

COCA-COLA CHEWING GUM: THE BIRTH OF BRAND LICENSING

Did you know that Coca-Cola was one of the first brands to do licensing? Way back in 1903, Coca-Cola licensed its name to a separate company to produce Coca-Cola–branded chewing gum. This early move set the stage for modern brand licensing.

Fast forward 120-plus years, and Coca-Cola is still one of the most recognizable brands in the world. Licensing has been a key part of its marketing strategy from the very beginning, helping expand its brand far beyond soft drinks. (Flip to the nearby section “Brand Licensing 101: How Coca-Cola capitalizes on its brand” for details.)

Want to dive deeper into Coca-Cola’s rich licensing history? Check out The Martin Guide to Coca-Cola Memorabilia’s article at www.earlycoke.com/coca-cola-chewing-gum.

Coca-Cola’s licensing journey proves that a strong brand can go way beyond its original product and sometimes even create a whole new industry.

Exploring the licensing of other brands

Brand licensing is everywhere. From fashion and publishing to automotive, music, film, and even heavy construction, companies across industries have successfully leveraged licensing to expand their brand reach.

What do all these brands have in common? Brand equity, the loyalty and recognition that consumers have for a brand that makes it valuable beyond its core products. Strong brand equity allows companies to license their names into new and exciting product categories, from merchandise and retail experiences to theme parks and even digital content. Licensing is about creating deeper consumer connections and ensuring that a brand stays relevant and visible across different industries.

Table 1-1 provides a look at some of the most famous brands that have thrived through licensing (aside from Coca-Cola, which we cover in the earlier section “Brand Licensing 101: How Coca-Cola capitalizes on its brand”). These brands have successfully turned their names into powerful revenue streams and marketing tools, proving that a well-managed licensing strategy can be a game-changer.

TABLE 1-1 Famous Successful Brands

The Brand

How It Started

What It Licenses

Star Wars

Premiered as a film in 1977 and became an instant hit that turned into a franchise.

Toys, collectibles, apparel, home décor, kitchenware, LEGO sets, board games, books, comics, trading cards, video games, and many others

Caterpillar

A manufacturer of construction and mining equipment (becoming the world’s leader in the industry); synonymous with rugged durability and quality.

Footwear (work boots), work wear, storage products, tools, and even toys

Grateful Dead

Formed in 1965; became one of the most legendary rock bands, with a devoted fan base known as Deadheads.

Apparel, posters, home décor, collectibles, accessories, lifestyle products, and even ice cream. Ben & Jerry’s Cherry Garcia flavor is one of the most famous licensed products.

Chevy Corvette

Introduced by the Chevrolet automobile company in 1953 as a boost for sluggish sales; became an icon and developed a fan base worldwide with its iconic designs.

Apparel and accessories, collectibles and diecast toys, jewelry, and car care products.

Keith Haring

Came to fame in the 1980s New York art world as a graffiti artist and died young; art became ubiquitous in the licensing world.

Apparel, accessories, home décor, footwear, and limited-edition collaborations with luxury and streetwear brands.

Pokémon

Released in Japan in 1996; video games (Pokémon Red and Pokémon Green) for the Game Boy expanded into a global franchise.

Trading cards, toys, apparel, accessories, home décor, video games, board games, collectibles, plush figures, stationery, and collaborations with fashion and lifestyle brands.

Dockers

Launched in 1986 by Levi Strauss & Co.; became the go-to brand for casual and business-casual khakis.

Footwear, belts, bags, eyewear, socks, and accessories.

Scotts Miracle-Gro

Founded in 1868; became a trusted name in lawn and garden care.

Lawn mowers, gardening tools, gloves, sheds, hoses, and outdoor power equipment.

Yves Saint Laurent

Founded in 1961; revolutionized high fashion with ready-to-wear collections that merged elegance with modern style.

Fragrances, eyewear, jewelry, shoes, and accessories.

Better Homes & Gardens

Founded in 1924; became the leading magazine for home décor, gardening, and food, shaping American lifestyles for generations.

A direct-to-retail partnership with Walmart featuring over 4,000 products, including bedding, bath, home décor, furniture, paint, wallpaper, and lighting; also licensed for Better Homes & Gardens Real Estate with over 400 offices worldwide.

Each of these brands has successfully expanded far beyond its original product through licensing. Whether it’s toys, clothing, gardening equipment, or luxury goods, these companies have tapped into consumer loyalty to create entire new revenue streams while strengthening their brand presence worldwide.

Deploying a Brand Licensing Strategy

If you’re new to licensing, the most important concept to grasp is how leveraging a brand’s power can boost sales, expand market presence, and strengthen consumer loyalty.

In later chapters, we guide you through the key steps of deploying a brand licensing strategy, including the following:

Finding the right licenses (

Chapter 5

)

Developing strong retail relationships (

Chapter 8

)

Creating effective marketing strategies (

Chapter 12

)

By understanding and applying these principles, you’ll be equipped to capitalize on brand licensing opportunities and drive success in the marketplace.

Examining the different categories of brand licensing

Though the most common form of brand licensing involves consumer products, licensing extends into experiences and digital or virtual items as well; we cover those later in the chapter. Many brands license their names, logos, and characters for immersive experiences and digital content.

Here’s a quick breakdown of commonly licensed items in all three categories:

Consumer products:

Encompasses nearly every product type, including these:

Toys and collectibles

Apparel and accessories

Food and beverages

Home décor and furnishings

Footwear

Pet products

Consumer electronics and appliances

Health and beauty

Experiences:

Licensing can also bring brands to life through interactive, real-world experiences, such as the following:

Stage shows and live events

Theme park rides and attractions

Branded restaurants

Cruises and travel experiences

Gaming and lottery partnerships

Digital and virtual Items:

As technology evolves, brand licensing has expanded into the digital world, including these options (read more about them in

Chapter 4

):

Online video games and in-game content

Avatars and skins for characters

Online sports betting

Non-fungible tokens (NFTs)

By understanding these categories, you can better identify licensing opportunities and strategically expand your brand into new revenue streams.

Understanding trademarks, copyrights, and patents

Before diving into brand licensing, you need a handle on how intellectual property is categorized and protected by law. The three main types of IP — trademarks, copyrights, and patents — help safeguard different aspects of products, brands, and innovations.

This book focuses on trademark licensing, which is the most common form of licensing in branding. However, knowing how copyrights and patents differ is still useful.

With guidance from the U.S. Patent and Trademark Office (USPTO), here’s a quick breakdown of each category:

Trademarks:

Trademarks

protect brand names, logos, slogans, and symbols that identify and distinguish a product or service. Think of Nike’s swoosh logo, the McDonald’s golden arches, or the word

Coca-Cola

in its signature font; these are all trademarks. A registered trademark prevents others from using the same or confusingly similar marks.

Copyrights:

Copyrights

cover original artistic, literary, or intellectual works, including music, books, paintings, movies, software, and photography. A song by Taylor Swift, a novel by Stephen King, and a movie script are all items protected under copyright law. A copyright owner controls the rights to reproduce, distribute, and display their work.

Patents:

Patents

apply to new inventions, processes, or designs like a pharmaceutical drug or device, a unique engine design, or a new type of touchscreen technology. A patent grants the inventor exclusive rights to make, use, or sell the invention for a set period.

Visit the USPTO website for full descriptions and examples of these IP types: www.uspto.gov/trademarks/basics/trademark-patent-copyright.

Before entering any licensing agreement, make sure the brand owner has properly registered and protected its IP. If it hasn’t, anyone can legally use the brand without permission! (See Chapters 6 and 7 for more.)

Boosting sales through brand licensing

You may be wondering, “How can brand licensing help my business?” The answer is simple: Brand power equals more sales.

If you’re selling products, adding a well-known brand to your lineup can instantly boost consumer trust and interest. People are more likely to buy a product with a familiar name because they already recognize and trust the brand behind it.

And as we note earlier in the chapter, it’s not just for consumer products. Brand licensing works across many industries. Consider the following:

Theme parks and attractions:

A Batman-themed ride will attract far more visitors than a generic roller coaster ride.

Restaurants and hospitality:

A café named after a beloved brand will likely draw in more customers than an unknown name (see the nearby sidebar “

How a movie inspired a restaurant empire

” for an example).

Retail and apparel:

A Michael Jordan Chicago Bulls-branded NBA jersey will outsell a generic basketball jersey because of the legendary name associated with it.

No matter what business you’re in, strategically using well-known brands can drive sales, increase foot traffic, and give you a competitive edge.

HOW A MOVIE INSPIRED A RESTAURANT EMPIRE

When Forrest Gump hit theaters in 1994, it became an instant blockbuster. One of the film’s most memorable storylines was Bubba Gump Shrimp Co., the seafood business Forrest started in honor of his friend Bubba.

In 1995, a seafood company licensed the Bubba Gump name to sell frozen shrimp. Soon after, a Monterey, California, restaurant saw the potential and secured a license for a Bubba Gump Shrimp Co. restaurant. The themed dining experience was a hit, catching the attention of Landry’s, a major restaurant group, which expanded the brand.

As of this writing, Bubba Gump Shrimp Co. has locations worldwide, making it the first restaurant chain ever inspired by a movie — and a perfect example of how brand licensing can turn fiction into a thriving real-world business.

Brand Licensing Includes Products, Services, and Experiences

In this section, you find a quick overview of key brand licensing segments and how they may fit into your business strategy.

Consumer products: Recognizing the licensing everywhere

The most widespread form of brand licensing is in consumer products. If you want to see brand licensing in action, the best thing you can do is hit the stores! Walk through Walmart, Target, Uniqlo, Zara, GAP, Macy’s, Primark, or Hot Topic and take a close look at the products on the shelves. Ask yourself the following:

Which ones are licensed?

Which ones are

core

(owned by the company itself)?

Chances are you’ll be surprised by how many products are either licensed or feature a licensed brand. For those new to licensing, retail research is an eye-opening experience. Most consumers assume that all products come directly from the brand, but after you start looking at packaging details, you realize how deeply licensing is embedded in the marketplace.

Experiences: Selling memorable moments

For Gen Z (born between 1997 and 2012) and Gen Alpha (born between 2010 and 2024), real-world experiences have become an expectation, not just a luxury. These younger generations seek out branded, shareable experiences and love to commemorate them with merchandise.

But experiential licensing is much bigger than just concerts and festivals. Immersive brand experiences such as the following are thriving:

The FRIENDS Experience:

Launched in 2019 for the show’s 25th anniversary, this interactive exhibit became a global success with permanent locations and touring exhibits. Fans can explore Central Perk, Monica’s apartment, and original props from the show.

The Office Experience:

A touring interactive exhibit where fans can step into Dunder Mifflin, sit at Michael Scott’s desk, and relive classic moments from the show.

Titanic: The Exhibition:

A licensed, immersive experience featuring life-size recreations, authentic artifacts, and personal stories from the ship’s passengers, offering a deep dive into the history of the legendary vessel. RMS Titanic, Inc. is a company that aims to preserve the legacy of the Titanic's passengers and crew. The company has recovered over 5,500 artifacts from the wreck site since 1987. They have conducted research and recovery expeditions and have also created educational programs and exhibitions.

Branded theme parks and travel, such as the following, are also huge:

Universal’s Wizarding World of Harry Potter

Disney Cruises

Even baby boomers have embraced experiential licensing. Case in point: Margaritaville, the multibillion-dollar lifestyle brand inspired by Jimmy Buffett. Today, it includes restaurants, resorts, and cruises and even retirement communities. The Latitude Margaritaville retirement communities, located in Florida and South Carolina, offer a tropical, laid-back lifestyle for Parrothead fans, complete with live entertainment, beach-themed amenities, and a permanent vacation vibe.

Navigating Digital Licensing: The New Frontier

Brand licensing is going digital at lightning speed. As technology advances, brands are finding new ways to engage consumers in the virtual world, creating massive opportunities for licensing in gaming, AI, and digital fashion:

Video game licensing:

Video games have become one of the largest entertainment industries in the world, with billions of players globally. Brands are partnering with game developers to create exclusive in-game content, including branded weapons, character outfits, vehicles, and even entire game worlds. For example, Batman, Star Wars, and Nike have successfully licensed their IPs in hit games like Fortnite, Call of Duty, and Roblox, allowing players to interact with their favorite brands in a whole new way.

Virtual avatars and branded skins (branded skins are the outfits you can dress your virtual avatars in):

The rise of digital self-expression has driven brands to expand into virtual fashion and accessories. Luxury fashion houses like Gucci, Prada, Louis Vuitton, and Balenciaga have all launched branded skins, clothing, and accessories for avatars in video games and metaverse platforms. (The metaverse is a virtual world accessed online in which users are represented by avatars.) These digital fashion items allow consumers to showcase their style in virtual spaces, and in some cases, they even come with real-world perks, such as access to exclusive events or physical product tie-ins.

AI-generated brand collaborations:

Artificial intelligence (AI) is opening new doors for brand licensing, enabling companies to create AI-generated virtual influencers/brand ambassadors, artwork, and branded content and personalized experiences. For example, AI-driven fashion collections, branded chatbots, and interactive storytelling experiences are becoming new revenue streams for brands looking to tap into digital licensing.

As digital licensing continues to explode, it’s creating endless opportunities for brands to reach consumers in immersive and interactive ways, whether that’s through gaming, AI, or virtual fashion.

Bringing Together Brand Collaborations

Brand collaborations happen when distinct brands join forces to create new, innovative products or experiences. These partnerships generate buzz, exclusivity, and high demand, making them one of the fastest-growing areas in licensing. Consumers love brand collaborations because they’re unexpected, fresh, and fun. Following are some examples of brand collaborations; Chapter 4 has more info on collabs:

The Air Jordan sneaker:

The Air Jordan sneaker is the granddaddy of brand collaborations. Nike’s partnership with Michael Jordan not only changed the sneaker industry but also paved the way for today’s booming footwear collaborations.

Supreme X Louis Vuitton:

In 2017, Supreme and Louis Vuitton redefined luxury streetwear with a groundbreaking collection featuring Supreme’s bold red box logo fused with Louis Vuitton’s classic monogram. The collab sold out instantly, with resellers flipping items for ten times their retail price., Turns out that high fashion and streetwear can dominate both hype and high-end markets.

Lady Gaga and Oreos:

In January 2021, Oreo released pink and green Lady Gaga-themed cookies inspired by her

Chromatica

album. The collab was a hit; it became Mondelez’s top-selling online item and made up one-third of all Oreo sales that month.

Off-White X American Red Cross:

Fashion brand Off-White, founded by Virgil Abloh, partnered with the American Red Cross for a fashion collab featuring hoodies, T-shirts, and hats that blended streetwear with a charitable cause. The collection was a hit, with $710 hoodies at Saks Fifth Avenue selling out quickly, proving that high fashion and philanthropy can drive impact and demand.

Chapter 2

Probing Branding: Why People Buy

IN THIS CHAPTER

Starting with an understanding of branding

Looking at the ingredients of branding

Understanding branding’s importance

Creating and maintaining trust with brands

Creating connections with emotional branding

Building brand trust with the purchase pyramid

Considering brand licensing to boost your product or business

Welcome to the fascinating world of branding! In this chapter, you dive into the collective 50 years of brand knowledge and experience of Professor Stu Seltzer of NYU and me (25-plus years publishing the leading licensing publication). Together, we explore the power of branding and how licensing a brand is one of the best-kept secrets in business.

Brand licensing’s success hinges on the power of branding. Only the strongest of brands can successfully extend into new products, services and experiences. Understanding the essence of what makes a strong brand helps you understand more about brand licensing and begin your journey of finding the right brands to create your success in licensing.

Defining Branding

Branding is the process of creating a unique name, design, and image in a consumer’s mind and distinguishing an organization, product, or experience with the aim of creating a lasting impression and developing consumer trust. At its core, branding is about creating an emotional connection with customers through consistent messaging and experiences.

Because you’ve picked up this book and are reading this chapter, you’re already familiar with the concept of a brand. The For Dummies series is a perfect example of a well-known and trusted brand. Over more than 30 years, the For Dummies brand has helped millions of people simply and easily discover the ins and outs of everything from human anatomy to chess to social media marketing. The For Dummies series is so successful as a brand that it has extended its reach into licensed products. How? Because as a brand, For Dummies is well-known and trusted. Readers who trust what they’ve gotten from the For Dummies series are naturally attracted to other books branded under the For Dummies name. And there are over 1,000 of them!

By exploring how critical branding is to increasing product sales, you can understand the attributes that separate a brand from simply a product. This distinction is the first step on your licensing journey.

Investigating the Ingredients of Branding

A simple way for you to understand branding is to think of it like cooking a great dish: Both follow a tried-and-true recipe. By using the right combination of ingredients in just the right amounts, products develop into brands. Here’s a list of the ingredients that make up successful brands.

Brand identity:

This identity begins with creating strong visual elements. A brand’s logo should be simple yet unique in its color and design. Think about Coca-Cola, Apple, and McDonalds; they all have simple, unique logos that utilize design and color to stand out.

Brand promise:

What differentiates a brand from a product? Brands make a promise, whether that’s high quality, low prices, innovation, or customer service. Think about Walmart. What makes it so special? Quality products at affordable prices and thousands of convenient locations.

Brand perception:

Brand perception

is how consumers perceive a brand. If you have an Apple product, you know it’s at the forefront of technology and ease of use.

Brand loyalty:

Branding done right leads to consumer brand loyalty. After you’ve shopped at Walmart, you’ll most likely return based on previous experience.

Breaking Down Why Branding Is Important

Branding isn’t just about having a cool logo or catchy slogan; it’s the heart and soul of your business. It’s what makes people recognize you, trust you, and choose you over the competition. Whether you’re selling sneakers, software, or sandwiches, strong branding helps your business stand out, build meaningful connections with customers, and create lasting value. Think of it as your business’s personality, reputation, and promise — all rolled into one.

Here’s why branding is a big deal:

Differentiation:

In a crowded marketplace, a strong brand stands out.

Connection:

It’s about creating an emotional bond with your consumer.

Value:

A well-established brand provides a company more leverage in the industry, like getting prime retail shelf space.

Consistency:

Branding builds recognition and trust, helping customers feel more confident in their purchasing choices.

Attraction:

A strong brand keeps loyal customers coming back and also attracts new ones through its reputation and visibility.

The bottom line is that branding isn’t just important; it’s essential.

Trusting in Brands

Trust in brands simply means that consumers have confidence and belief in a company’s products or services, stemming from the company’s perceived reliability, integrity, and competence.

Why trust matters in branding

Trust is the foundation of any strong brand. It’s what turns first-time buyers into lifelong customers and casual followers into passionate advocates. When consumers trust a brand, they believe in its products, services, and promises. This confidence comes from a company’s perceived reliability, integrity, and competence — qualities that aren’t built overnight but are earned through consistent performance and authentic connections.

Here’s why trust is a game-changer for brands:

Customer loyalty:

Trust fosters loyalty, encouraging customers to return again and again.

Brand differentiation:

In a crowded marketplace, trust sets a brand apart from the competition.

Tough times: