If growth is what you seek, but you lack the patience to endure the slow pace of organic growth, and don’t have the capital necessary to finance launching or expanding a business operation, then you might want to consider the many benefits associated with partnering through licensing.
Licensing is one of many strategy options that include Joint Ventures, strategic alliances, corporate partnering, revenue sharing, distribution agreements, and numerous other collaborative business arrangements that provide an exceptional opportunity to catalyze growth. A licensing venture can rapidly meet your business needs for key resources, generate more customers, attract capital, acquire needed expertise, expand product lines, open new markets, secure new facilities, access new distribution channels, increase production capacity, and offer a whole host of other additional benefits.
Some advantages to using a licensing partnership is the low financial and operational barriers to entry, combined with very rapid deployment capabilities. The need for speed is critical to evaluate when considering partnering as an option. Corporate partnering is very commonplace in industries experiencing rapid technology change. There is often a strong correlation between the rate and scope of change within a particular industry, and the amount of partnering that occurs within a particular industry.
Licensing can be an extremely fluid and flexible business model. Each licensing partnership should be engineered based upon its own unique requirements. The most common method of structuring and governing the licensing partnership is by written contract. The presence of a governing document allows both parties to address such issues as non-competition and non-circumvention, use of brand guidelines, intellectual property considerations, performance requirements, indemnifications, and winding-up provisions among others.
The reality is that few organizations have everything they need, and the basic principle behind partnering is that no matter what the need, there is another entity somewhere that can fulfill any unmet need.
Rand Brenner is President / CEO of Licensing Consulting Group, an intellectual property management and licensing company specializing in assisting clients in IP Management, Strategic Consulting, Acquisition of Licensing Rights, and Property Representation. Rand has licensed some of the biggest Hollywood blockbusters, including “Batman” and the “Mighty Morphin Power Rangers”, both of which generated billions of dollars in worldwide merchandise sales. He has lead various international licensing programs as both licensee and licensor, and through consulting projects focused on licensing strategy, brand development, sponsorship sales and property representation.