Rights holders are almost always looking for ways to monetize
the intellectual property (IP) that they own or license. For owners
of rights in popular logos; characters from TV shows, movies, or
video games; or similar IP, one way to generate a revenue stream is
to enter into merchandise license agreements.
In a merchandise license agreement, the licensor typically
grants a licensee the right to manufacture, market, distribute, and
sell products that use the licensed IP. This type of license
benefits the licensor by creating revenue from merchandise that the
licensor does not have the experience or desire to manufacture and
sell in its own normal course of business. Licensees benefit from
being able to use the licensed IP as a means to drive product
sales.
