Independence of Licensees

A few times we already pointed out, that as a licensor you have some responsibility for your licensees. Yes, they are independent companies and that is one of the advantages of licensing over for example franchising.

But, they are not totally independent. The smaller the company and the more important your brand license to their business, the higher your responsibility. That might not always be a legal responsibility, sometimes it is a moral one. To give you an example, when Tommy Hilfiger pulled its shirt license from its licensee Einhorn, those lost 70% of their revenues. And since Einhorn could not replace the license, it went bust.

Now in some cases the responsibility goes even further.
In a recent case the highest appelate court in Germany for civil and criminal cases decided, that in general a terminated licensee is entitled to compensation similar to a terminated exclusive sales agent. This is more likely, if the licensee has to hand over client lists and if the licensor continues selling in that product category.

You might want to check your brand license contracts regarding this matter.

Laura Ashley für Gärtnerinnen

Zunächst in Großbritannien und dann in den USA kommen neue Lizenzprodukte von Laura Ashley auf den Markt und diese sind mal wieder ein Treffer.
Nach diversen schwer verständlichen Markenerweiterungen kommen nun Produkte rund ums Gärtnern.

Ab 2011 wird es vom Lizenznehmer Tenax Gartenwerkzeuge, Handschuhe, Gartenschürzen und Gummistiefel geben.

Im Gegensatz zu Nähmaschinen und medizinische Berufsbekleidung passt das zum Markenimage von Laura Ashley.

Laura Ashley Gardening

After some slightly questionable brand licenses like sewing machines and medical apparel Laura Ashley seems to be get back to what it stands for: romantic.

Tenax was licensed to develop garden products under the Laura Ashley brand.
Products will be launched in spring 2011.

The license includes tools, gloves, Wellingtons, aprons, kneeling cushions and planters for women.

Distribution will be through garden centers and specialty garden stores.