The AGARTHA brand licensing business model is unique to the fashion industry and has many compelling attributes which include:
Trademark Brand Licensing is a commercial transaction whereby the owner of intellectual property ("the Licensor") allows a 3rd party ("the Licensee") to use that intellectual property as the "brand" for a specific product or range of products under contracted commercial conditions within a license agreement that govern its use – for example the duration of the relationship, the geography where the products may be sold, the distribution channels, the price positioning and other considerations. The Licensor is remunerated for these arrangements in the form of fees - usually calculated as a percentage of the licensed product's sales volume ("royalty").
Brand licensing, therefore, produces financial income for the Licensor. It is a way to monetize one's brand or other IP with minimal cost and if professionally managed, limited risk. However, there are many other additional reasons companies license their brands.
Entertainment companies license their movies and animated characters in areas such as clothing and toys for promotion and marketing purposes amongst other reasons. Fashion companies often license their labels for perfume, watches, and eyewear because specialist companies have superior expertise, resources and knowledge to exploit these products areas than they do. A company might also license its IP in a core business area within a specific geography that they do not have the organization, experience or knowledge to execute in themselves. Still, other companies may choose to license simply as a preferred business model – focusing their efforts only on building a brand and leaving to 3rd parties the task of commercializing the brand in different product areas.
Corporate Brand Licensing will often find that the brand reputation and attributes they have built over many years can be credibly "migrated" to entirely different product universes where consumers seek and trust the same sort of attributes. The Goodyear Tire & Rubber Company, for instance, has been one of the world's leading tire companies for over 100 years. Along the way, they have built a reputation for durability, toughness, innovation, and safety. The brand is also associated with travel, mobility, and weather-proof qualities. It is easy to see then that such a brand, with its winged foot trademark, might also be credible for hiking boots and outdoor gear to take only one example.
Licensing one's trademark in product areas where brand migration is meaningful and credible can generate significant incremental business income while also positively reinforcing core brand attributes, promoting brand exposure and reaching new consumers. It can be a highly beneficial virtuous cycle.
Brand Licensing, therefore, can be undertaken for many reasons and create many benefits of which financial income is only one.
AGARTHA is a top-tier licensing, and brand management agency focused on creating new revenue streams for our clients through licensing, strategic partnerships and other brand extension opportunities.
For licensors, our goal is to commercialize opportunities that will extend our clients’ brand equity into new product categories to maximize their licensing potential.
For licensees, we assist manufacturers in acquiring brands and developing strong licensing programs to create long-term licensing and retail success.
Representing both licensors and licensees, our team of seasoned “liaisons” has extensive experience in developing successful brand extension and licensing programs. Our collective experience includes activities with numerous high profile brands, entertainment, sports licenses, and much more.
We use our extensive network and relationships to build strong partnerships among brand owners, manufacturers, and key retailers. By creating mutually beneficial relationships among all of the participants in the brand extension process, we are able to create innovative licensing and retail programs that bring long-term value to our clients.