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Hundreds of new trademark license agreements are developed each year. Corporate or brand extension licensing is visible in more categories than ever before. Given the value of many brands being licensed, use of an effective valuation methodology for brand extension licenses is important for licensors and licensees.

Most trademark licensing relationships are defined and evaluated based upon the terms in a license agreement contract. In the case of a brand extension license, there can be a lot at stake, including the health and well being of the licensor’s brand. Surprisingly, many license agreements do not include specific terms or requirements that reflect key marketing objectives.