Licensing

A license to use a registered design for a particular purpose, like producing or promoting a product, is given by the owner of the design (the licensor) to another person (the licensee) under the terms of a contract. Through this agreement, the licensee can profit from the licensed design’s aesthetic and functional appeal, which could improve their product offers and competitiveness in the market. The scope of use, including product categories, geographical areas, duration, quality control procedures, and financial parameters like royalty payments, are usually specified in the licensing agreement. Design licensing can be non-exclusive, allowing several licensees to use the design, or exclusive, allowing only one licensee to use it. Without getting directly involved in production or distribution, this strategic strategy helps design owners to increase the reach and influence of their ideas and create new revenue sources.

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