Which Of The Following Is Provided By The Licensor In A Licensing Agreement
The benefits of licensing can be viewed from two angles: licensees and licensees. The licensing agreement allowed Starbucks to promote brand awareness outside of its North American operations through Nestlé`s distribution networks. For Nestlé, the company has accessed Starbucks products and a strong brand image. The value of the brand can be positive or. A licensing agreement is a legal contract between two parties, the licensee and the licensee. In a typical licensing agreement, the donor grants the purchaser the right to manufacture and sell products, apply a brand name or trademark, or use the licensee`s patented technology. In return, the taker generally submits to a number of conditions relating to the use of the licensee`s property and undertakes to publicize the payments in the form of royalties. Those who enter into a licensing agreement should consult a lawyer, as there are complexities that are difficult for those who do not have a deep understanding of intellectual property law. The bargaining power of both parties to a licensing agreement often depends on the nature of the product.
For example, a film studio that would grant the image of a popular superhero to an action figure maker could have considerable bargaining power in this negotiation, as the manufacturer will likely benefit from such an agreement. The film studio therefore has the lever to take its business elsewhere if the manufacturer has cold feet. In May 2018, Nestlé and Starbucks entered into a $7.15 billion coffee licensing agreement. Nestlé (the licensee) has agreed to pay $7.15 billion in cash to Starbucks (the licensee) for exclusive rights to sell Starbucks products (single serving coffee, teas, beans, etc.) through Nestlé`s worldwide distribution network. In addition, Starbucks receives royalties from coffees and packaged teas sold by Nestlé. Licensing agreements are the conditions under which one party can use the property of another party. While the real estate concerned may include a variety of properties, including real estate and personal property, licensing agreements are most used for intellectual property, such as patents and trademarks, as well as copyrights for written material and visual arts. A licensing agreement is a contract between two parties (the licensee and the licensee) in which the donor grants the donor the right to use the mark, patented technology or the ability to produce and sell property in the licensee`s possession.