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Brand Licensing

  • Jan Lindemann
Chapter

Abstract

Brand royalties or licenses have become an important source of brand value creation. The size of the global licensing market was estimated to amount to about US$187 billion in 2008.1 Brand licensing is one of the fastest growing sectors in the licensing industry. Licensing is a contractual agreement in which the owner of a trademark grants permission to a third party for the economic use of the brand. In exchange for granting the rights of a brand to a licensee, the licensor obtains financial remuneration — known as the royalty. On average, royalty payments are between approximately 5 and 15 percent of the wholesale price of each sold product depending on the industry. Luxury and strong consumer brands can command a royalty fee at the higher end. Brands are licensed in categories and markets including: consumer goods; luxury goods; retailing; telecommunications; and many B2B categories.

Keywords

Brand Equity Transfer Price Corporate Brand Taxable Profit Royalty Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Jan Lindemann 2010

Authors and Affiliations

  • Jan Lindemann

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