Licensors are the crucial link between business owners and product owners. Licensors grant licenses to their customers so they can make, use, or sell a particular product or service. This means that when a customer purchases a license, they obtain the legal right to reproduce, use, or resell the product or service.
The rise of the sharing economy has made licensors increasingly important. Businesses that use popular sharing platforms, such as Airbnb, Uber, and TaskRabbit, all need to obtain a license from the product owners so they can market their services to the public. The ability to purchase a license provides peace of mind and ensures that the product is safe to use.
Additionally, many companies use licensors to protect their intellectual property. Corporations that have developed a valuable asset, such as a trademark or logo, use licensors to grant licenses to other companies who wish to reproduce the product for a fee. By doing this, the licensor helps protect the original company’s products from being copied or used without permission.
In today’s business world, licensors play a critical role in the development and maintenance of products, services, and intellectual property. Business owners must learn how to properly identify and work with licensors in order to ensure they are legally protected against trademark infringement and other intellectual property violations.