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Friedman LLP

PUBLICATION: February 7, 2017

Key Issues to Consider When Negotiating a Licensing Deal

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Publication: Fashion Sense
Author: Michael Sacco, CPA, Partner

Brand licensing in the fashion industry is a trend that continues to rise - with both brand owners and licensees benefiting from intensified consumer demand of top brands, specifically social media-savvy brands that are connecting with teenagers and millennials.

Licensing has opened the doors for companies to expand their brands into new markets and territories and reach wider demographics. As brand owners seek out licensees who know the market and have the production and sales capability, it is crucial to be aware of key issues to consider as negotiations ensue. These licensing negotiations should address several critical factors including, but not limited to, performance requirements, rates, terms, guaranteed minimums, approved customers and internet rights.

Highlighting these important considerations, the following article written by Charles Klein, Esq., the Fashion Chair at David Hutcher & Citron LLP, features a discussion between fictional characters Carlo Glamorosa, a brand owner, and Irwin Smoothtalk, a licensee, as they negotiate terms of a brand license agreement.

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  • Michael Sacco
    Michael Sacco
    CPA, Partner
    msacco@friedmanllp.comp212.842.7032
    f212.842.7001

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