Licensing Process

Read the below statements/questions carefully and make sure that you understand what is being asked. The questions may have multiple parts to consider.

Discuss the licensing process, focusing on the seven key steps involved across four stages. In your discussion, picture yourself responsible for the development of a licensing plan for your company who is new to licensing. Walk through the process and highlight key issues with each step. You may use your Sport Licensing Plan Company as the example. When possible, comment on specific actions you would take.

The licensing process would be as follows:

Stage 1: Prepare for licensing

  • Step 1: Define objectives and strategy for licensing.
  • Step 2: Evaluate the company’s Intellectual Property (IP) which can be licensed. These include slogans, logos, team names, and trademarks.

Stage 2: Find and select licensees

  • Step 3: Identify potential licensees or partners who align with the company’s brand. Create a list of potential partners in the sports merchandise industry and assess their track record.
  • Step 4: Negotiate licensing agreements with the potential licensees. Discuss essential provisions such as quality control, exclusivity, royalties, and terms.

Stage 3: Implement and manage the license

  • Step 5: Collaborate with the selected licensees to develop high-quality licensed products that resonate with the targeted audience.
  • Step 6: Regularly monitor the quality of the licensed products to ensure they meet the company standards.

Stage 4: Expand and renew the license

  • Step 7: Explore opportunities to expand the product line and renew or renegotiate the license agreement.

Using specific examples, identify and discuss the licensor’s main objectives and concerns/issues that they will need to address when preparing to enter into a licensing relationship. Be specific.

Licensor’s main objectives include:

  • Extend the reach and visibility of the brand beyond its main services or products.
  • Generate supplementary avenues for increasing revenue
  • Enter new markets related to sports
  • Develop engagement with the existing customers

Licensor’s concerns/issues to address include:

  • Quality control to ensure sports equipment and other products meet quality standards.
  • Legal and contractual issues such as intellectual properties and licensing agreement.
  • Assess and address potential competing interests between licensees.

Describe and give a specific example of a sport strategic alliance. Make sure that you accurately state what a strategic alliance is and what it is not. Using a specific example from the current world of sport business (e.g., SBJ), identify and discuss what the key objectives/goals might be for each partner entering the strategic alliance.

Strategic Alliance is a partnership between two organizations where both can maximize profit from the engagement. This is not a short time fix but rather a long-term relationship that creates value. Strategic Alliance is not a situation where one profits and
the other stagnantes. A good example is the strategic alliance between Adidas and the International Olympic Committee (IOC). In this strategic alliance, Adidas’ objectives include enhancing its global brand visibility, elevating its reputation and credibility, and developing innovative footwear. IOC aims to generate income, promote its values, and support athletes.