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Sports Licensing Basics

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Trademark

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A recognizable sign, design, or expression that distinguishes products or services of a particular sports entity from those of others.

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Merchandising

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The practice of promoting and selling branded products related to sports teams or athletes.

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Royalty

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A payment made to the licensor for each unit sold by the licensee, often a percentage of the retail price in the sports industry.

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Licensor

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The entity or individual who owns the intellectual property rights and grants the license to the licensee, often a sports team or league.

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Co-branding

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A strategic partnership where two or more brands collaborate on a product or service, enhancing the perceived value of sports merchandise.

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Exclusivity

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A licensing term where the licensee has sole permission to produce and sell merchandise within a particular category or market in sports.

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Licensee

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An individual or company that obtains the rights to use another's brand or trademark in exchange for a fee or royalty within the context of sports merchandise.

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Official Supplier

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A licensee authorized to sell products or services officially related to a sports entity, usually under stringent brand and quality guidelines.

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Licensing Agreement

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A legally binding contract between licensor and licensee outlining the terms and conditions under which the licensee can use the sports-related intellectual property.

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Territorial Rights

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A license provision allowing the licensee to produce and sell merchandise within a specific geographic region in the sports sector.

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Endorsement

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A public declaration of approval or support by an athlete or coach, often used in sports marketing to enhance brand credibility or awareness.

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Minimum Guarantee

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A financial commitment that the licensee agrees to pay the licensor, regardless of sales, ensuring a baseline income for the sports entity.

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Licensing

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The granting of permission to use intellectual property rights, such as trademarks or brand names, for certain purposes within sports, like merchandise.

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Counterfeit Merchandise

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Unlicensed knockoffs of sports merchandise that infringe trademark rights, which can negatively impact legitimate sale revenues and brand value.

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Sponsorship

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A business relationship where a sponsor provides funds, resources, or services to a sports entity in exchange for marketing and advertising benefits.

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