Core Principles of Global Licensing

Global licensing is an excellent way for businesses to increase profit. You can diversify revenue streams and expand your brand presence into newer global marketplaces. AliveAdvisor, helps you gain access to resources, new technologies, markets, and countries worldwide.


What is Global Licensing?

Global licensing gives certain rights and/or resources to manufacturers or service providers in a host country. A global licensing agreement is where a company gives another company permission to manufacture its product or propagate services under defined conditions for a specified payment.

Global licensing is a legal vehicle for taking your product or service to another country under an agreement for a specified period under which the licensor is paid a royalty on each unit produced or service sold for ongoing support or advice. It is a low-risk option that requires no up-front investment.


Global Licensing Agreements

Global Licensing Agreements
There are many reasons why your business should strike a global licensing agreement during international expansion. The most obvious one is that you can generate revenue and royalty payments from the deal.

Some other reasons for global licensing agreements are:

  • Marketing Support: Alongside generating product sales, global licensing also promotes your core property in countries abroad. Imagine your product or service being displayed across countries, in local norms, without any effort from your side.
  • Extending Your Corporate Brand: Foray into new areas, categories, and overall into new businesses without making any major investments into machinery or manufacturing processes. A well-run global licensing agreement enables you to maintain control over the brand image and how it is portrayed.
  • Relatively Small Upfront Risk: There is a relatively small upfront risk for potential new businesses seeking global expansion. Property owners can try new businesses by licensing their brand to a third-party manufacturer. Moving to newer global markets with a small upfront investment omits the need of building and staffing an essential workforce.
  • Maintaining Control: Global licensing agreement is an effective way of maintaining control over your original creation. It provides an effective way for artists and designers worldwide to profit from their efforts. Global licensing and registering brands for owners in multiple markets protect the brand from being used by unauthorized entities.

Additional Benefits

Additional Benefits
There are several other additional benefits to global licensing. The licensor assumes several responsibilities that are required to be met by the licensee to create a successful global licensing program.

These include:

  1. An efficient and time-bound process by the licensee to enable the product or service to move along the development chain.
  2. Guiding the licensee by the licensor is often in the form of a printed or digital guide. The document speaks of the brand, character, logo, or other IP that is to be portrayed on the product or service packaging. The same applies to advertising and promotional content.
  3. Assisting in marketing activities and helping the brand to sell in retail markets across the world.

Risks Involved in Global Licensing

You should also be aware of the risks involved in global licensing. You as the brand owner have to be careful while making a deal with the licensee. Ensure that the licensee creates and delivers products bearing your brand name that has been agreed upon.

Make sure that the service and retailer adequately adhere to quality. Their goals for the brand should align with that of the brand owner. A true global relationship involves a well-executed plan that is a win-win proposition for all involved.


Services of the Top Global Licensing Group

It is an exciting time to join AliveAdvisor, the top global licensing group. AliveAdvisor continues to add Fortune companies to its portfolio of global licensing partners. We have won contracts from some of the biggest corporate brands and are now entering a new phase for small and upcoming businesses seeking global expansion.

Our three Ps of global licensing agreements include Protection, Promotion, and Profit. We are the world guru in the world of global marketing, creating collaborations, and brand extensions for businesses around the world. Welcome to the top global licensing group that helps you gain valuable future trend insights by a team of top experts on global expansion for businesses worldwide.

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