The license allows you to use certain rights within agreed limits. The franchise normally includes the use of a brand and a business model, along with knowledge and assistance.

Merchandising allows you to market products using a brand, character, creation or image. Sponsorship seeks to give visibility and associate a brand through an economic or resource contribution.

These formulas can be combined. For example, a sponsorship may include permissions to use images and a merchandising agreement may require licenses of different rights.

Authorized rights, territory, duration, exclusivity and payments must be defined. Quality standards, previous approvals and conditions for granting sublicenses should also be established.

It is important to control sales if there are royalties and foresee what happens if the contract is breached or when it ends. For example, a license can allow accessories to be manufactured, a franchise includes assistance and procedures, merchandising requires rights to the characters and sponsorship must specify the agreed appearances and mentions.

At Premark we help identify rights and organize their exploitation through contracts. The objective is to commercially leverage intangible assets and maintain clear control over authorized uses.