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Chapter 1: Defining the World of Licensing Definitions and Terminology

Over the years, the licensing industry has developed a set of terms that need to become understood if one is to function effectively in the industry.

Forms of Licensing
The term “licensing” typically means any transaction in which the owner of intellectual property grants another party the right to use such intellectual property, typically in exchange for some form of consideration or payment.

Absent the grant of such a right or license, the other party’s use of the intellectual property would be considered an infringing use. Thus, the license constitutes a defense to infringement. Licensing is, therefore, the monetization of an existing asset.

Chapter 2: History of Licensing

2.1 The Properties

    2.1.1 The Beginning

Although there is little historical documentation establishing exactly when the licensing of famous brands or characters began, rumor has it that its origin traces back to the Middle Ages when Roman Catholic Popes granted licenses to local tax collectors for the right to be associated with the Church in exchange for the payment of “royalties” to the Vatican. It is believed that this practice continued for several years and formed the basis for what would eventually become modern day licensing.

The practice of paying royalties for the right to use another’s name or likeness is believed to have begun in the 18th Century when two British ladies of nobility were reported to have permitted (or licensed) a cosmetics manufacturer to use their name on its products and, in exchange, would receive a percentage of the revenues generated from the sale of such products.

APPENDICES

APPENDIX-1 LIMA CODE OF BUSINESS PRACTICES
APPENDIX-2 LICENSEE PROPOSAL
APPENDIX-3 DEAL MEMO
APPENDIX-4 LICENSE AGREEMENT
APPENDIX-5 PRODUCT CATEGORIES
APPENDIX-6 STYLE GUIDE
APPENDIX-7 APPROVAL FORM GUIDE & FORM
APPENDIX-8 MARKETING PLAN OUTLINE
APPENDIX-9 CHANNELS OF DISTRIBUTION CHECKLIST
APPENDIX-10 SAMPLE ROYALTY REPORT
APPENDIX-11 LICENSING AGENT AGREEMENT
APPENDIX-12 SUB-AGENT AGREEMENT
APPENDIX-13 CONSULTING AGREEMENT
APPENDIX-14 NON-DISCLOSURE AGREEMENT
APPENDIX-15 MANUFACTURER’S REPRESENTATIVE AGREEMENT
APPENDIX-16 TRADEMARK CLASSES
APPENDIX-17 FORM VA COPYRIGHT APPLICATION
APPENDIX-18 FORM TX COPYRIGHT APPLICATION
APPENDIX-19 FORM PA COPYRIGHT APPLICATION
APPENDIX-20 FORM SR COPYRIGHT APPLICATION

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