Licensing a Brand – Unlocking the Brand Equity

Companies who know their brands well will have a good understanding of the equity of the brand. A brand’s equity is derived from the awareness and image a brand holds with its consumers.

Licensing enables companies whose brands have high preference to unlock a brand’s latent value and take advantage of demand that exists for non-competitive products.

Apple’s IPod is a good example of a brand (and product) that created an  immediate need for accessories. Since these accessory products were not core to Apple’s business, they chose to use licensing to meet the demand for these accessory  products, and benefit from the incremental revenue. Licensing the iPod brand provided great opportunities for savvy companies to produce all kinds of terrific products to make the iPod more user-friendly and enhance the listening experience.

Examples include the iPod docking station, alarm clock radios featuring iPod docks, wireless blue tooth receivers and other products that enable an iPod to be heard through a vehicle’s built-in stereo and iPod holding devices that allow users “to take their music with them” when they go running.

Rand Brenner Author
Founder , Licensing4Profits
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience includes medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the Mighty Morphin Power Rangers. Rand is a featured speaker on licensing at investment conferences, trade shows, colleges and startup events. He’s a published writer with articles appearing in several prestigious trade magazines. Rand also mentors at Cal State Fullerton Business School and is a judge for their startup business plan competitions.

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