GLOSSARY OF LICENSING TERMS

Licensing: the process of leasing a legally protected property in conjunction with a product or a product line

Property: a trademarked or copyrighted entity, which could be a name, likeness, logo, graphic, saying, signature, character or a combination of several of these elements

Licensor: the owner or agent of the property
Licensee: the renter of the rights, usually a manufacturer

Contract: a binding agreement between two or more persons that is enforceable by law

Execute: to perform or carry out a contract

Royalty: the basic component of payment, a percentage of the licensee's sales of products

The Guarantee: a required minimum royalty, which the licensee has to pay even in the face of total failure of the property.

Advance: a percentage of the guarantee that is paid upon execution of agreement

Image Assets: any trademarked assets, images, artwork or legal lines used on or for the licensee’s product

Trademarked Assets: image assets such as signatures, logos, numbers, and sponsors that are legally protected by the licensor

Amend: a change or addition to a contract which will have the same legal power as the original contract

Renew: the continuation of a contract that has expired or almost expired, dependent upon full payment of the guarantee

Now that you are familiar with the terms, continue on to see why you should Invest in Bill.