Licensing your trademark is a great way to make some extra money without reinventing the wheel. By the end of this post, you’re going to understand what a license is, some special things about trademark licenses, and examples of ways you can make more money with trademark licensing in 2020..
First, what is a license?
A license is another word for “permission,”
It’s not an exclusive grant of rights. (Though there are “exclusive” licenses, that’s not what we’re talking about, here.) In other words, you are not selling or granting your trademark to someone else, you are simply giving them permission to use it, but in a very specific way.
And, speaking of that specific way, there are some special things to think through when you are licensing a trademark as opposed to licensing artwork or creative work.
Special aspects of a trademark license: QC, QC, QC
When you’re licensing a trademark, you are licensing your mark’s “good will.” (If you don’t, it’s considered a “naked license” and you could lose your rights.) Good will is your trademark’s reputation and brand recognition. And for that reason, QC, QC, QC. In other words: Quality Control.
It’s not worth it to make more money with trademark licensing if you don’t have control over how your brand’s reputation is used. You want to be absolutely sure that you have some voice, some control over how your trademark is used. You want the power to control the area in which your trademark will be used by this other company.
Because it is tied back to your brand, you want to be absolutely sure that you have quality control over things like the materials that are used, or maybe artistic aspects. You don’t want the licensed use to stray from your core brand.
So, to paraphrase,, you are essentially “partnering” with another company that already does what you’re wanting to do in connection with your trademark.
A few trademark licensing examples
Check out these examples of how to make more money using trademark licensing:
- You are a fashion or beauty influencer that wants to create a beauty line. So, you partner with BeautyCounter or another existing makeup line to lend your brand name to a new, specific line within that existing brand.
- You are a blogger on productivity and planning in business and you want to release a planner under your brand name. You partner with and license your mark to a company that already makes planners, they already have the supply chain nailed down. The company already has suppliers, it knows how to do this, so that all you have to do is maybe be involved in the creative side and, obviously, lend your mark, — and thus, your reputation, your brand — to this product.
Again, if you leave with one thing today, remember that quality control is an essential part of a trademark license. A trademark license could be a great opportunity to expand your brand without reinventing the wheel.
So I hope this helps you understand the possibilities when it comes to making more money using trademark licensing.
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