How can you use the legal tools of licensing and distribution to increase your profitability? The Watkins Firm has served San Diego’s business community for decades. We have extensive experience in licensing and distribution agreements. Our business contract and intellectual property attorneys have decades of experience helping our clients to leverage their unique products, processes and intellectual property to reach new markets and expand profitability.
Many business owners confuse issues of licensing and distribution with franchising. Generally speaking franchising is much more expensive and expansive requiring:
- a comprehensive plan or systematic process
- unique brand, product, trademark or other intellectual property
- fees or royalties associated with the relationship between the parties
Franchising requires extensive legal documentation, contracts and (depending upon the state) registration in a given state. It is much easier and an effective strategy to consider licensing and distribution to increase your profitability and achieve the growth you seek. Licensing is usually an agreement between your company and another business or individual to allow the use of your company’s intellectual property. This can include but is not limited to:
- Unique products
- Copyrighted Materials
You collect a fee or royalty for the use of your company’s intellectual property. For example, a small local business may want to place your company’s logo on a t-shirt. A licensing agreement provides authorization for them to reproduce your logo in exchange for a given fee or royalty.
Distribution is another strategy to extend your products or services to additional vertical or geographic markets. A distribution agreement allows another business or individual to purchase your company’s products and/or services for a fixed price and resell them within a protected territory or vertical market space. The details of how your products or services are distributed and marketed must be left to the other party in order to avoid the legal establishment of a “franchise.”
The issues associated with licensing and distribution to increase your profitability involve complex legal and business questions. We invite you to contact the Watkins Firm or call 858-535-1511 for a free consultation. Our skilled business attorneys provide insight, understanding and the legal services necessary to protect your interests while expanding the reach and profitability of your organization.