Tips for Successfully Negotiating a Product Licensing Deal

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Another excellent example – is Häagen-Dazs, one of the most famous ice cream brands which has effectively used product licensing. It has granted permission to businesses all around the world to use their delicious recipes.

Microsoft doesn’t have to make everyone buy another copy of Windows, they have licensed it. By doing so, they have managed to massively increase their customer base in the market.


As soon as you identify a product that has the potential to be very profitable, you have to get in touch with the licensor or the owner of the item. To negotiate all the terms and conditions, the licensor is the appropriate person to contact. Check whether you as the licensee will be the only one to use the licensed product or the licensor intends to involve other companies spain phone number list for the product. It is necessary to be as concise and clear as possible when stating your objectives and requirements for the licence. Discuss the quality control procedures, royalty scheme, marketing strategies, and sales goals. It sets the stage for a good and healthy working relationship.

Budgeting for Product Licensing Expenses
Licensing is a good opportunity for online sellers to expand their business and range of products. However, effective supervision of the process includes rigorous preparations in terms of budgets. The following lists the main costs to take into account when planning for a product licensing agreement:

License Charges:
Advance Fee: For the licensing rights, some licensors require an initial payment. This charge may vary depending on the product, the market potential, and the extent of the brand’s awareness to the consumers.