— A —
Advance or Advance Payment
An amount paid by the licensee to the licensor, which is non-refundable and credited against future earned royalties. It is due upon the execution of a license agreement.
Approval Process
The series of activities undertaken by the licensee and the licensor which enables the licensee to proceed with the manufacture and distribution of the licensed products.
Attributes
Properties of a given product, service or brand such as cost, value for money, prestige, taste, usability, etc.
Audit Rights
The legal right of the licensor to audit the royalty payments, financial statements, accounting data and other information of the licensee.
— B —
Bill of Goods
Communication that persuades someone to accept something untrue or undesirable.
Brand
A unique and identifiable symbol, association, name or trademark which serves to differentiate competing products or services. A brand creates both physical and emotional triggers to create a relationship with its consumers.
Brand Acquisition Licensing
Acquiring a potrfolio of licenses that allow a licensee to produce, market and sell approved merchandise bearing another company's trademarks. In exchange for the right to leverage those brands, the licensee pays a royalty fee to the brand owner.
Brand Attributes
Functional or emotional associations that are assigned to a brand by its customers and potential customers. Brand attributes can be either negative or positive and can have varying degrees of relevance and importance to different customer segments.
Brand Equity
The value - both tangible and intangible that a brand adds to a product/service.
Brand Extension
The application of a brand beyong its initial range of products, or outside of its category. This becomes possible when the brand image and attributes have contributed to a perception with the consumers where the brand and not the product is the decision driver.
Brand Identity
A unique set of associations that the brand aspires to create or maintain. These associations represent what the brand should stand for and imply a potential promise to customers.
Brand Image
A unique set of associations within the minds of target customers which represent what the brand currently stands for.
Brand Owner
The company or an individual, who owns a trademark and provides the rights to the licensees to develop them as licensed products.