Many brands look for co-branding ventures to target specific latent markets. In general, these business ventures can be both profitable and philanthropic. Especially during COVID-19, larger brands have been more willing to work with its independent partners and/or retailers to develop co-branded products for both retail and ecommerce market.
No matter the size of your brand, a properly structured and carefully chosen co-venture relationship & agreement can help boost your sales & reputation.
The skateboard industry is one example where brands are willing to collaborate, especially with charities and local retailers or skate shops.
For example, Element Skateboards (Element) just released the below co-branded skateboard deck with The Harold Hunter Foundation (HHF), a NYC nonprofit dedicated to providing the underserved youth with valuable life experiences and opportunities through skateboarding.
While some ecommerce listings appear for this product, the product was intentionally only released at select retail skate shops.
Further, the products were hand delivered by two of element’s pro skateboarders. In addition to providing potential income for HHF and local retail skate shops, Element’s charitable donation for these products also boosts the goodwill and reputation associated with the Element brand.
While the above example was intended to help bring consumers into partner retail stores, other recent co-branding ventures have been intended to boost ecommerce sales.
During COVID-19, Vans has partnered with skate shops and other small businesses to release customizable co-branded Vans shoes. From comic books stores, to coffee shops, to record companies, to dance studios, Vans has provided an opportunity for companies to supplement their income with ecommerce sales. In addition, through this philanthropic venture, Vans has added to the goodwill and reputation associated with its brand.
While COVID-19 has further changed the retail and ecommerce sectors, co-branded ventures continue to be a viable option that can benefit both larger brands and their independent partners. Whatever the product at issue, these limited ventures can help revenue as well as the goodwill and reputation associated with the respective brands.
License agreements are essential to protect both the owner of any intellectual property (IP) right (usually trademark and/or copyright) and the parties manufacturing, distributing, reselling and promoting the co-branded products. While these collaborations can be beneficial, there are also many potential downsides. However, many obstacles can be overcome and avoided with a clearly drafted agreement.
Our firm is available to assist with negotiating, drafting, reviewing and enforcing any license and/or co-venture agreements.
Although every business relationship is different, the following are common considerations for such agreements:
- IP Ownership
- Scope of the License Granted
- Compensation Structure/Method
- Representations and Warranties by each Party
- Indemnification by each Party
- Limits on Liability
- General Provisions (including Dispute Resolution, Choice of Law, etc.)
While you may be unsure what is necessary to protect your interests, our firm has the experience needed to properly craft these agreements in line with the underlying business deal.
Co-branded products continue to be a creative way to benefit parties both financially and reputationally.
Whether you are a larger or smaller brand, an IP owner looking to collaborate with a brand, or a reseller of a branded product, our firm has the experience and capability to represent your interests.