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Sports Licensing Basics
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Trademark
A recognizable sign, design, or expression that distinguishes products or services of a particular sports entity from those of others.
Merchandising
The practice of promoting and selling branded products related to sports teams or athletes.
Royalty
A payment made to the licensor for each unit sold by the licensee, often a percentage of the retail price in the sports industry.
Licensor
The entity or individual who owns the intellectual property rights and grants the license to the licensee, often a sports team or league.
Co-branding
A strategic partnership where two or more brands collaborate on a product or service, enhancing the perceived value of sports merchandise.
Exclusivity
A licensing term where the licensee has sole permission to produce and sell merchandise within a particular category or market in sports.
Licensee
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.
Official Supplier
A licensee authorized to sell products or services officially related to a sports entity, usually under stringent brand and quality guidelines.
Licensing Agreement
A legally binding contract between licensor and licensee outlining the terms and conditions under which the licensee can use the sports-related intellectual property.
Territorial Rights
A license provision allowing the licensee to produce and sell merchandise within a specific geographic region in the sports sector.
Endorsement
A public declaration of approval or support by an athlete or coach, often used in sports marketing to enhance brand credibility or awareness.
Minimum Guarantee
A financial commitment that the licensee agrees to pay the licensor, regardless of sales, ensuring a baseline income for the sports entity.
Licensing
The granting of permission to use intellectual property rights, such as trademarks or brand names, for certain purposes within sports, like merchandise.
Counterfeit Merchandise
Unlicensed knockoffs of sports merchandise that infringe trademark rights, which can negatively impact legitimate sale revenues and brand value.
Sponsorship
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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