To license its own brand, a company first checks that the brand is known, stands for clear values and is registered for the products it wants to enter; then it picks a few coherent categories, looks for licensees with the right production and distribution, sets the business terms and prepares a style guide and an approval process. The contract is written with a lawyer.
Is the brand ready for licensing?
- People recognise it and care about it. A licensee pays to sell more thanks to the brand: if the name means nothing to buyers, the licence has no value.
- It is clear what it stands for. Quality, taste, an era, a sport, a way of life. These values tell you which products the brand is credible on and which it is not.
- It is registered in the right classes. Trademarks are registered by classes of goods and services: the Nice Classification has 45, classes 1 to 34 for goods and 35 to 45 for services (Milan Chamber of Commerce). A biscuit brand registered only in the food classes is not protected on T-shirts or toys: before opening a category, check the registration and extend it if needed.
- It covers the countries where you want to sell. An Italian trademark is valid in Italy; Europe or other markets need an EU trade mark or international registrations.
- There is material to give licensees. Logo versions, images, characters or graphic elements, the brand’s story. If they are missing, prepare them before looking for partners.
- Someone in the company runs the programme. Licensees’ proposals must be reviewed and approved on time: without a dedicated person (or agency), products stall.
Which product categories to open
Start with a few categories close to what the brand already makes or promises, and expand only when they work. A food brand can move naturally into kitchenware, stationery or clothing that recalls its classic packaging; a sports brand into apparel, accessories and collectibles. Three questions help you choose: do people expect the brand on that product? Does the product live up to the quality the brand promises? Does it compete with something the company already sells, or with its customers and distributors?
How to find and choose licensees
- Profile. For each category, describe the ideal licensee: what it makes, where it sells (mass retail, specialist stores, online, export), how solid it is.
- Brand presentation. A short document with audience, values, real awareness or sales figures if you have them, proposed categories and visual product examples.
- Contacts. Direct research, the agency’s network and trade fairs such as the Bologna Licensing Trade Fair / Kids, an international event dedicated to licensing for children, teens and young adults, where licensors and companies meet.
- The licensee’s proposal. Ask for a plan: products, channels, prices, launch timing and sales forecasts.
- Choice. Judge the plan as a whole, not just the highest royalty or minimum guarantee: a licensee that sells little or badly costs more than it pays.
What to decide before the contract
Before the draft, settle the business terms: which products, in which countries and channels, for how long, exclusive or not, with what royalty, advance and minimum guarantee, how often sales reports arrive and how products are approved. In Italy, the Industrial Property Code allows a trademark to be licensed for part of the goods or of the territory, lets the owner act against a licensee that breaches the agreed duration, manner of use, products, territory or quality, and requires that the licence does not mislead the public about the essential features of the products (article 23, in Italian). For a non-exclusive licence, the same article provides that the licensee must undertake to use the trademark for goods identical to those marketed by the owner or by other licensees. Ask counsel whether and how the licence should be recorded with the Italian Patent and Trademark Office (UIBM). The contract must be written and reviewed by a lawyer or an IP attorney: here we only cover the business choices that come before it.
How to protect the brand’s reputation
- Style guide. A guide with logos, artwork, colours, copy and rules of use, so that every product is recognisable and consistent with the others.
- Staged approvals. Concept, artwork, prototype, production sample and packaging go through the licensor, with response times set in the contract.
- Checking the numbers. Regular sales reports and the right to audit them.
- An orderly exit. Rules for renewal, for the end of the contract and for selling off remaining stock (the sell-off).
The most common mistakes
- Opening too many categories at once, before knowing which ones work.
- Choosing a licensee only for the minimum guarantee, without looking at distribution and quality.
- Starting without a style guide: each licensee interprets the brand in its own way.
- Finding out after signing that the brand is not registered in the product’s class.
- Slow approvals, or nobody in charge of them, which make you miss the selling season.
Where to start
The first step is a check of the brand: what it means to people, how it is registered, which categories would make sense. If licensing is new to you, first read how brand licensing works and the glossary. If you want to know whether your brand can be licensed, tell us about it from the licensing service page.
