Licensing Agreement In Fashion Industry
Licensing your patent allows you to continue your innovation, while your licensee uses, develops and markets your patented invention. Since the licensee pays royalties on the proceeds of your invention, licensing your patent is financially advantageous for both of you. Suppose your company invented innovative inserts for sneakers, and you got a patent. You can grant the patent to a specialized manufacturer of sports shoes. In this way, you can earn royalties and work on new technologies, while the licensee uses your invention to develop and market a set of advanced sneakers. The District Court ruled for the Kardashians that a licensee has only two options if the licensee has breached the license agreement: “First, the licensee can terminate the contract and stop the delivery. Second, the licensee can continue to pay royalties under the licensing agreement, continue to use the trademarks and then sue for damages. Regardless of this, the licensee cannot stop paying royalties, but he can continue to use the mark. Licensing offers fashion companies a powerful way to grow, complement and strengthen the brand, expand into new markets and build their image.
However, it is important to design and negotiate the licensing agreement carefully in order to protect the brand`s products, as licensing inevitably means that the fashion company assigns the taker responsibility for the manufacture of products bearing the fashion brand`s brands. Due to the degree of interaction between the parties, a basis of trust is essential. As mentioned above, the two main categories of licensing agreements are: Ms. Weinstock is an experienced general and internal advisor with a career spanning the fashion, art, media and entertainment industries. She has provided high-level advice to well-known organizations such as global beauty company Coty Inc., fashion and lifestyle company Kenneth Cole Productions, Inc., the Writers Guild of America, East, the Television and Film Writers` Union, and Gist Communications, Inc., an interactive television company.