Fans of Harry Potter will certainly remember that a few years ago not many products were available from that brand. I myself had to make covers for a few notebooks so my schoolbooks would be personalized with themes from the magic world. 

But today the situation is completely different. The brand’s licensing is a success, and you can even find Harry Potter flip-flops that conform to the standards that Warner Bros. (owner of the copyright) has established for its products.

Since the series has won over millions of people worldwide, it’s understandable that Warner Bros. was initially concerned about product launches. After all, the quality of the products sold says a lot about the brand.

What is licensing and why is it so interesting?

The process in which you permit a partner to use your brand to produce consumer items is called licensing. One of the primary reasons for signing this kind of an agreement is the ease of conducting new business. With quality standards defined, you outsource the use of your brand for profit, and allow your partners to promote sales. This considerably reduces the costs you would incur if you had to go it alone in certain types of markets.

To give you an idea of how profitable this kind of deal can be, consider that licensing revenues in the United States (the world leader) hover around 150 billion dollars annually. And because there’s so much room for growth, the market is very promising.

The correct way to create a licensing agreement

The first step in initiating a licensing agreement is always to find an attorney that will guide the legal process and protect your intellectual property (brands, copyrights, etc.). This will help create a secure contract that includes legal measures necessary for avoiding future losses to your company.

A very effective device, though it’s still under-used, is a Fight Piracy Fund, supported by payments from the licensed partner. This fund must be used specifically to discover and prevent intellectual rights infringements. The licensor thereby avoids cash-flow surprises and boosts the licensee’s confidence that they can count on urgent measures to fight illicit competition from piracy.

It’s also important to do some research into the demand for and value of the products that will be launched into the market. Once these steps are taken, you will see that the process has numerous advantages:

• Easy brand expansion and greater contact with consumers
• Increased income from royalties (fees paid by the licensees)
• Ability to win a slice of the market that is already occupied by unlicensed or poor-quality products

However, just because people will have licensed products available, it doesn’t mean that unauthorized products won’t turn up. The ease of doing business online attracts people who want to make a profit by exploiting major brand names—often through unofficial means.

Something tells me that this (beautiful) backpack was not licensed.

How to protect yourself from losses due to unlicensed products

Instagram Shopping, eBay, Alibaba—and so many other marketplaces and sales channels on the web! There is no lack of options for marketing products that exploit your brand without permission or royalties payments.

Unauthorized sales find fertile ground online, and can become a headache for any business. So when your brand is improperly exploited, it’s essential to find out quickly who and where the malicious sellers are.

Most sites today offer tools for complaints and a step-by-step means for removing content once forms have been filled out. 

However, you’ll also need Axur’s artificial intelligence to find and fight unauthorized digital sales. Our solution scans all online shopping channels in search of fake or unlicensed products that may be exploiting your brand. Using information garnered from our monitoring, you can request the removal of fraudulent content through the Axur One platform. With just a few clicks, you can ensure the security and credibility of your company.