There should be a section of your agreement that clearly states all parties entitled to use the protected elements listed in the agreement. This can be an important element when an argument arises and the parties begin to blame each other in the event of an infringement. You need to make sure that the parties allowed in both companies, so that you will be able to find out where a breakdown occurs and who bears responsibility when it occurs. This is very attractive to companies that are new to international business. On the other hand, international licensing is a mode of entry abroad that has some drawbacks and reasons why companies should not use it because it exists: most of the entertainment and character licensing activity is aimed at children across a wide range of product categories, such as toys, clothing, publishing, video games and electronics. , among many others. Similarly, child-friendly entertainment and character traits often play an important role in licensing advertising, but the category also includes classic characters whose appeal is nostalgic, and even some child-centred characteristics are marketed as secondary to adult target groups by creating a “cool” factor around them. Maintain control of an original creation. Licensing is a way for artists and designers to take advantage of their creative efforts while maintaining control over their use. For trademark holders (particularly those operating in the global market), licensing and trademark registration in multiple markets is a way to protect the brand from the use of other trademarks without authorization. One of the most neglected parts of a licensing agreement is the identification of a meeting place that manages dispute resolution.

Most countries allow the licensee to determine the location of the event and, if none are chosen, the licensee`s home court is used. It is not the same in all countries, so it is always important to get sick on the side of caution and to choose a place to settle disputes in the United States. No matter what you choose, it is always best to choose a place that has the best laws to meet your needs. The use of licenses as a marketing and brand extension tool has increased over the past 30 years. If a strong licensing relationship is well executed, a strong licensing relationship brings benefits to all parties of the agreement – property owners and their agents, licensees and their related companies, retailers and, ultimately, consumers, each of these parties has its own goals and objectives that ultimately create added value for the end product or service. Licensing designer fashion names and brands in categories such as clothing, fashion accessories, health and beauty aids and household items is one of the company`s best-known facets. When licensing, the licensee has the advantage of entering the low-risk international market. However, the licensee has little or no control over the purchaser with respect to the production, distribution and sale of the product. In addition, if the taker is successful, the company has relinquished its profits and, when the licensing agreement expires, the company may find that it has given birth to a competitor. A small business that wants to expand into foreign markets often faces financial and cultural barriers that can hinder the success of expansion. Foreign licensing agreements can help a small company expand its product lines to other countries if it is unable to build and manage production-based production sites established abroad.

These agreements offer considerable benefits to a small business and can allow it to make money from its ideas and products on the international market, while reducing the financial risk of expansion if the company tries it itself. The overseas company enters into a fixed-term licensing agreement with another company with its