The essentials
of brand licensing

From characters on toys to fashion collaborations and branded experiences, licensing turns brand equity into exciting products people love – and creates value for everyone.

The global opportunity

Licensing is a powerful, resilient and growing global industry:

US$390B
Global retail sales of licensed merchandise and services 
in 2025
Source: Licensing International2026 Global Study
US$161.8B
Character/Entertainment licensing in 2025, up 8%
+14.1%
Growth in North Asia, the fastest-growing region globally

What is brand licensing?

Brand licensing is when the owner of a brand or intellectual property gives another company permission to use that IP on agreed products, services or experiences. The brand owner, known as the Licensor, retains ownership of the IP. The company receiving the rights, the Licensee, uses the brand to develop and sell approved products or experiences, usually in return for royalties.At its best, licensing does much more than put a logo on a product. It brings brands into consumers’ everyday lives in new and relevant ways.

Licensing language
Licensor
The brand or IP owner.
Licensing Agent
Represents the brand owner. Develops strategy, finds licensees, manages approvals and drives retail execution.
Licensee
The company licensed to make or sell products.
Category
The type of product that can be produced.
Territory
Where the licence applies.
Royalty
A percentage of sales paid to the licensor.
Term
How long the agreement lasts.
Minimum Guarantee
An upfront payment agreed at the start of the licence.

Why license?

Licensing creates value for both brand owners and licensees.

For Brand Owners
Extend into new categories with market experts
Reach new audiences and markets
Generate incremental revenue with lower risk
Build brand equity and cultural relevance
Increase visibility and stay top of mind
Deepen fan and consumer engagement
For Brand Owners
Access trusted, in-demand brands
Drive consumer demand and sales
Leverage marketing and brand support
Reduce risk with proven IP
Access new audiences
Drive cultural and social media impact

How does licensing typically work?

Every license defines what can be produced, where it can be sold, for how long and the commercial terms – while the brand owner retains control over how the IP is represented.
Brand strategy
Define objectives, categories, audiences, territories and commercial goals.
Licensing partner
Identify and appoint the right licensees.
Agree commercial terms and plan
Product development
.Licensee creates products that bring the brand to life for consumers.
Brand approval
Products are reviewed to ensure quality. compliance and brand integrity.
Retail & consumer
Products hit the market and fans connect with the brand.

Where does Merchantwise fit in?

Merchantwise sits at the centre of the licensing ecosystem - connecting brand owners, licensees and retailers. We help shape licensing strategies, identify the right categories and partners, manage product development and approvals, and support programs through to retail launch and beyond.

Our role is to make licensing work for everyone involved: protecting and growing brand equity for licensors, creating strong commercial opportunities for licensees, and bringing products and experiences to market that consumers genuinely want.

From strategy and partnerships to retail execution and ongoing growth, Merchantwise helps turn ideas into lasting commercial and cultural impact.

Ready to partner with us?

Ready to
‍partner
with us?

Whether you're a brand owner looking for an experienced licensing partner, or a manufacturer seeking access to world-class IP — we'd love to hear from you.
"Thank you for your enquiry. We will get back to you as soon as possible."
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