Features

How much is enough? How to avoid over-licensing

By Allan Feldman

As brand extension through licensing becomes increasingly popular, the phenomenon of over-licensing has emerged as a potential threat to brand health and longevity

The benefits of licensing include increased revenue, brand awareness and competitive strength, all of which can make a real different to a brand’s bottom line and in some cases make or break a business’s financial year. However, it is a delicate balance. Licensing too much or in too many product sectors can damage brand equity and erode public trust – sometimes irreparably.

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Issue 70