Licensing Advice from Chris Muggleton

Welcome to the Chris Muggleton Licensing Advice section, where we will be covering a range of topics throughout the year. If you have a specific question please e-mail us through the Contact Us page.

Licensee Agreements & Survey(Posted: 18-02-2011)

By Chris Muggleton

As promised this month we have launched a brief online questionnaire aimed at Licensees to get a better understanding of how they view the Industry and their License Agreements. There are only 9 questions nothing to taxing or probing, so should only take a couple of minutes to complete. Please do take a look at it Click here to take survey

Over the last few weeks I have travelled to see Licensees in Germany, France, Italy and the UK. As a result of those visits and given that this month’s column is focused towards Licensees, I feel I need to stress a key piece of advice to Licensees. If the Licensor permits you to do something that is not explicitly stated in the Licensee Agreement, get them to put it in writing.

I have listened to many Licensees try and explain how a long since departed category manager said certain sales were exempt from royalties or how a now ex finance director told them how to calculate royalties or how they had a telephone conversation with the Licensor to get approval to sell to a customer in Armenia. In each instance the Licensees did not document any of these conversations in writing with the Licensor and in each instance the financial consequences impacted their company and the relationship with the Licensor. The Licensor cannot be blamed for sticking to the strict terms of the signed Agreement - that is what it is there for and staff turnover and the number of Licensees they have appointed will cause these oral conversations to be long forgotten.

Although it seems simple enough and obvious, do remember to get it in writing, get them to confirm in an email and keep following up with the Licensor to ensure that a Contractual Amendment is issued and duly signed.

Okay sermon over – next month some early feedback on the Questionnaire.

As ever if you do have a question or query I can be contacted at chris@licensingadvice.com

Chris Muggleton