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What is an Licence to Merchandise a Fictional Character?

A license to merchandise a fictional character is a legal agreement that grants permission to a licensee (such as a manufacturer, retailer, or merchandiser) to use and exploit the rights associated with a specific fictional character for commercial purposes. This license allows the licensee to produce and sell merchandise featuring the character, such as toys, clothing, accessories, collectibles, and other consumer products.

Tips

• Specify Territory and Distribution Channels: Define the geographic territory where the licensee is authorized to sell the licensed merchandise and identify approved distribution channels. Consider whether exclusivity or non-exclusivity is appropriate for the licensee’s distribution rights.
• Clarify Rights and Restrictions: Clearly define the scope of the license, including the specific rights granted to the licensee and any limitations or restrictions on the use of the character. Be explicit about which products and product categories are covered by the license.