CHAPTER 3: Fashion and Apparel Licensing
Barbara Kolsun and Kristin B. Kosinski
Summary adapted from Chapter 3 of "Fashion Law: A Guide for Designers, Fashion Executives and Attorneys" edited by Guillermo C. Jimenez and Barbara Kolsun (Fairchild Books, 2010).
Licensing can promote tremendous growth and brand awareness, increasing profit and revenue streams for the parties involved in a license agreement. Chapter 3 presents an overview of licensing in the fashion industry and addresses the issues that arise from contractual agreements from the perspective of licensor and licensee.
Strategic alliances through fashion licensing can build up successful market opportunities for both parties. There are many reasons that may motivate a fashion company to license, such as: expanding licensor's operations into alternative product categories, expanding distribution channels, creating access to new technologies, resources and geographic areas, etc. The negotiation of a license constitutes the most important phase of the licensing process because it defines the terms in which the agreement will be reached so both parties can benefit from the agreement. Matters such as infrastructure and protected rights of both companies and finances to support the license should be scrutinized during the negotiation phase.
This chapter presents a detailed description of the key terms in a licensing agreement: licensed products, exclusivity, trademarks, length of time and geographic territory where the license applies, compensation, quality control, and marketing and sales requirements. The description provided for each one of these key terms enunciates the provisions that should be included and the precautions that should be taken in order to reach a strategic alliance that will benefit both parties.
Author details:
Barbara Kolsun
VP and General Counsel
Stuart Weitzman LLC
New York, New York
Kristin B. Kosinski
Cislo & Thomas, LLP
Santa Monica, California
Summary by: Margarita Serrano
