What is brand licensing
Brand licensing is an agreement through which the owner of a brand, a character or a creative work (the licensor) grants another company (the licensee) the right to use it on products or services, for a set period and in a set territory. In return, the licensee pays royalties, usually a percentage of sales. It is the mechanism that puts a cartoon character on a backpack or a stadium’s name on a T-shirt.
The mechanism is explained step by step in brand licensing: what it is and how it works; the technical terms (property, royalty, minimum guarantee, approvals) are collected in the licensing glossary.
Licensing services for licensors and licensees
We work on both sides of the agreement. For owners of a brand or character we build the licensing program; for manufacturers we choose the property and design the products. In between is the part that sets us apart: creative work for licensed products, from the style guide to the final files, and the approvals between the two parties. What an agency of this kind actually does is explained in what a licensing agency does.
What is the difference between a licensor and a licensee?
The licensor is the rights holder: a brand, a character, a team, a venue or an event. The licensee is the company that gets permission to use it on its own products, makes and distributes them and pays royalties. The licensor checks and approves how the property is used; the licensee brings manufacturing skills and sales channels. The roles and obligations of each are described in licensor and licensee.
For licensors
- For licensors. For owners of a brand, a character, a team or an event: priority product categories, the profile of the partners to look for and materials to present the brand. The steps are explained in how to license your own brand.
- Brand licensing strategy. The plan for the licensing program: what the brand stands for, for which audience, which categories to enter first and which to avoid because they would distort it.
- Licensor consulting. Support for owners who already have active licences or are about to sign: a review of the licence portfolio, consistency across products, priorities for the coming seasons.
- Property evaluation. An analysis of how ready the property is for licensing: audience, recognition, available assets, compatible categories.
- Category strategy. Which product categories to open, in what order and with what kind of licensee, so the brand grows without overlaps.
- Territory strategy. In which countries or regions to offer the licence, considering where the audience already knows the property and how distribution works there.
- Partner search. We look for the right licensees for a brand, or the right properties for a manufacturer.
- Licensing pitch deck. The presentation of the property for potential licensees: audience, values, proposed categories and visual product examples.
What is a property evaluation?
It is the analysis that comes before a licensing program: it tells whether a property (a brand, a character, an event) has a large and loyal enough audience, in which product categories it is credible and which assets are needed to present it. It is not a financial valuation or an appraisal: it is the basis for deciding categories, partners and priorities. How to think it through is explained in how to choose a licensing property.
For licensees
- For licensees. For companies that make or sell consumer goods: a reasoned choice of the property that best fits the product line. See how to choose a property to license.
- Licensee consulting. Support on the licences you hold or are negotiating: which lines perform less well and why, which categories to add, what to look at in the most common financial terms, summarised in royalties and minimum guarantee.
- Merchandising strategy. Range, product tiers and seasonality of the licensed line: which items to make, with how many artwork variants, for which channel and for which buying occasions.
- Product development. From idea to artwork prototype: how the property translates onto a specific object, within the technical limits of production.
On the licence agreement we give a general overview in the licensing agreement, which is not a substitute for legal advice: the clauses are written and checked by each party’s lawyers.
Creative work for licensed products
- Licensing creative direction. The visual tone of the program: how the property appears on products, what stays fixed and what can change from one category to another.
- Style guides for licensors. We write and design the style guide, the manual that shows licensees how to use the brand and characters on products.
- Artwork and approvals. Artwork for licensed products designed by our graphic design team and set up according to the licensor’s rules. We also handle the approval flow between licensee and licensor.
- Product graphics. Patterns, illustrations and layouts ready to apply to textiles, stationery, toys, food and accessories.
- Packaging for licensed products. Packs that combine the licensee’s brand with the property, with the notices and spaces the licence requires.
- Retail materials. Displays, signs and point-of-sale materials that present the line in store with the same artwork as the products.
- Asset adaptation. The assets supplied by the licensor (logo, characters, photos) adapted to the formats and printing techniques of each product.
- Approval support. We prepare approval submissions, collect the licensor’s corrections and keep track of every version until sign-off.
What is a licensing style guide?
It is the manual the licensor gives licensees so they use the property correctly: logos, characters in the approved poses, palette, typefaces, patterns, product examples and rules on what not to do. It cuts down corrections at the approval stage and keeps the property recognisable on products made by different companies. What it contains and how it is built is explained in the guide to the licensing style guide.
Examples of projects that combine licensing and graphic design: Ferrero, Lupin III, Vespa and Calciatori Panini.
Strategy, creativity and product in one path
In licensing, commercial and creative decisions often sit with different people. Magnet keeps them together: strategy (choice of property and partners, categories, program structure), creativity (creative direction, style guide, artwork, packaging) and product development (from the line to production-ready files, with the licensor’s approvals). We work alongside licensors and licensees, and we do not replace each party’s lawyers.
To go deeper: from contract to shelf, how a licensed product is developed and the types of licensing agencies, to see which partner fits which need. Projects in the portfolio: FIAT 500, San Siro and La Gazzetta dello Sport.
Development and activation
- Merchandise and brand extension. New product lines with well-known brands and characters: how licensed merchandise and brand extension work, that is, taking a brand into categories other than its original one, choosing those where the audience finds it credible.
- Co-branding. Projects in which two brands sign a product or a collection together. For brand collaborations such as capsules and special editions we handle partner choice, concept and shared artwork.
- Activations and events. Initiatives and events that bring the licence to life with the public and in stores. Property activation also covers anniversaries and celebratory editions.
- Licensing campaigns. Communication for the launch of a licensed line, with media planning handled by our advertising and media service.
How big is the licensing market
In 2025, worldwide retail sales of licensed products and services reached $389.8 billion, up 5.45% on the previous year, according to the Global Licensing Industry Study 2026 by Licensing International, carried out by Brandar Consulting across 51 countries. The sector grew faster than retail as a whole (+4.52%). The largest category is characters and entertainment, at $161.8 billion: anime, video games, comics and social media alone account for 34% of that figure.
$389.8 bn
worldwide retail sales of licensed products in 2025
+5.45%
growth over 2024, faster than retail overall (+4.52%)
$161.8 bn
characters and entertainment, the largest category
Source: Licensing International, Global Licensing Industry Study 2026.
Licensing by sector: the brands we have worked with
Our licensing portfolio covers very different fields. Projects can also be browsed by sector: Sports, Lifestyle, Consumer Products and Events & Culture.
- Characters and animation: Lupin III, Holly & Benji, Go Nagai, Calimero, Coccole Sonore
- Sport: Calciatori Panini, La Gazzetta dello Sport, San Siro Stadium, Sergio Tacchini, Mascalzone Latino, Wolf Racing
- Lifestyle: FIAT 500, Vespa, Route 66
- Consumer products: Ferrero, Dal Negro, Pastiglie Leone, Chiquita
- TV and events: Mare Fuori, La Prova del Cuoco (the Rai 1 cooking show), Viareggio Carnival
- Character and entertainment licensing. Cartoons, anime, comics, TV shows: properties with an audience that has followed them for years and recognises them at once on a product.
- Sports licensing. Teams, newspapers, stadiums and competitions: products that speak to fans and collectors.
- Lifestyle licensing. Heritage brands from industry and design, such as icons of motoring and travel, taken onto clothing, accessories and objects.
- Consumer products licensing. Mass-market brands entering new categories, or consumer goods companies using a well-known property for a line.
Two sector guides: sports licensing and character and anime licensing.
How many projects and in which categories: the summary is in our portfolio in numbers.
How we work
- Discussion. We start with a conversation: we study the brand, its audience and the product categories it makes sense to enter.
- Strategy. We define goals, partners and product lines, from the licensor’s or the licensee’s point of view.
- Production. We design artwork and materials consistent with the brand’s identity, ready to go onto the product.
- Approvals and launch. We follow the revisions with the licensor through to the final files and prepare the materials to present the line to distributors and retailers.
What you get
- An analysis of the brand or property: audience, product categories worth entering, competitors.
- If you are a licensor: a licensing strategy with priority categories, the profile of the partners to look for and materials to present the brand.
- If you are a licensee: a reasoned choice of the properties that best fit your product line.
- The style guide and the pitch deck for the property, when the program needs them.
- Artwork for the licensed products, already set up for the licensor’s approvals.
- Packaging and point-of-sale materials consistent with the line.
- The approval log: versions, requested corrections and sign-offs.
- Production-ready final files.
When you need it
- You own a brand, a character, a team or an event with a loyal audience and want to bring it to new products.
- You make consumer goods and want a well-known property for a collection or a line.
- You already have active licences but the artwork or the products are not performing as well as they could.
- You need to present your property to potential licensees and have no style guide or presentation.
- You want to take your brand into a new category or sign a collection with another brand.
Who it is for: owners of brands and characters (licensors) and companies that make or sell licensed products (licensees), including companies that want to start a co-branding project.
Licensing FAQ
The licensor holds the rights to the brand, character or creative work. The licensee is the company that obtains the license and makes or sells the products. The license agreement sets which products the brand can be used on, in which countries and for how long.
The licensee usually pays the licensor a percentage of revenue from the licensed products. The agreement often also includes an advance and a minimum guarantee, an amount owed even if sales fall short of expectations. Rates and minimums vary widely from one brand to another and from one product category to another.
It depends on the brand and the type of product. License agreements generally last a few years, apply to a specific territory and can be renewed if results are good.
Almost any brand with a loyal following: cartoon and comic characters, sports teams and venues, TV shows, events, heritage brands from industry and design. Magnet’s portfolio has examples in each of these categories.
A licensing agency helps the licensor make the most of its brand and find companies interested in using it, or helps the licensee choose the property that best fits its products. Magnet handles both the strategy and the creative side, with artwork and products consistent with the brand’s identity.
Write to us through the contact form or at info@magnetmilano.it and tell us about your brand or the product you want to develop. The first step is always a conversation to understand goals, audience and product categories.
It depends on the category. After signing come design, licensor approvals, production and listing with distributors, which often follow seasonal calendars. That is why a licensing program is planned over several years, not around a single campaign.
No, we do not give legal advice. We handle strategy, partner choice and creative work; the clauses of the agreement, such as term, territories, royalties and minimum guarantees, are written and checked by each party’s lawyers. To get your bearings before talking to a lawyer, see our guide to the licensing agreement.
Yes. Licensees often come to us with the licence already signed and need product artwork, packaging and point-of-sale materials for each item. We start from the licensor’s style guide, design the line and follow the approval submissions through to production-ready final files.
It is a project in which two brands sign a product, a collection or a special edition together. Each brings its own audience and credibility, and the product has to show both clearly. It works when the two brands have compatible values and the product makes sense for both audiences.
