LICENsE AGREEMENT
DEFINITION
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Licensing means the commercialization of licenses with which the licensor grants the licensee the right to use a patent, a trademark, a certain know-how or a fundamental element for the production and / or the marketing of a product or service.
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This form of partnership, due to the benefits it entails, has had a great development at an international level (International Marketing). For the company that grants the license, the license agreement is a means of extending the use of intellectual property, penetrating a new market without having to make direct investments in production plants and distribution networks. For the licensee, that is, for those who use the license in their own country, it means being able to enter a new business quickly and with modest risks.
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If, on the one hand, licensing allows rapid entry into new markets without having to sustain entry costs, on the other, it requires the company to undergo considerable research and development dynamics and constant attention to innovation. With the granting of licenses, in fact, the company disseminates know-how and therefore runs the risk that the licensee will acquire knowledge such as to become a competitor when the contract comes to end. Therefore, if the company does not want to be reached by licensee companies, it must maintain a constant development gap. In addition, the licensor also runs the risk that the licensee's behavior could damage the brand image or the reputation of the company, in the event that the licensee does not meet certain quality or reliability standards.
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development process
PROTOTYPING & ENGINEERING
The term engineering indicates an intermediate working phase between the design of an artifact and its production. After the project, or after having physically created one or more prototypes of the product, whether simple or complex, the engineering phase follows, necessary to make small corrections to the initial project, with the aim of improving its characteristics, but at the same time putting in practice, the best technical solutions, aimed at minimizing the time required for assembly in the future production phase, as well as facilitating any maintenance. At this stage it is also chosen which aspect to give to the product, to make it of maximum satisfaction to the potential buyer.
Achieving good engineering usually involves higher costs in terms of time and money on the part of the manufacturer, therefore the result is not always easy.
Everything is born, therefore, from a prototype. The success of a product passes from its prototyping and subsequent industrialization. In this phase, the real feasibility, functional and aesthetic characteristics and, above all, economic sustainability are concretely defined. You need to have technologies and technical skills that can support the design and engineering phase, which will turn your idea into reality.
Once the prototype has been created, the next phase will be serial production, an efficient process compliant with technical and budget specifications.
In this way, FCO wants to collaborate with partners who, through licensing, want to create new products to be placed on the market.
THE INDUSTRIALIZATION OF PRODUCTS
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Going from thought to action requires the fulfillment of a series of consecutive steps from which no one (or almost) can exempt. Having acknowledged, after having carried out the necessary analyzes, that the idea and the product are attractive to the market, we must undertake the path of industrialization that will lead to production and, subsequently, to marketing.
Technical drawings, design, simulations, tests, etc. these are all actions that are part of the industrialization process. This term indicates an approach to design that takes into account not only the functional specifications, the application context and the design of the product, but also the possible construction technologies (foresee the feasibility of realization using the technology chosen to produce it).
The design and consequent industrialization of the product temporally precede the actual production and are vital steps, as they are the first that highlight the real costs of the product and the way in which the different variables (construction technique, materials, finishes, etc. ) can affect the final price.
BASIC ASPECTS
Changing a project in the industrialization phase, if necessary, is much less expensive than changing a product already built, if not even in the production phase. The design may need to be guided to deal with the associated investments, to understand if the level of automation that can be used for the construction of the product is adequate for the sales cost and the expected volumes, to check if the levels of innovation in the product and in the process are significant or to verify if there is an adequate production capacity in terms of quality. All this because if you want to reach the customer's expectations (quality, cost, service) it is essential that the design is excellent.
Designing a product with an excellent quality perceived by the customer (both in terms of functions and aesthetics) but difficult to realize in the production phase would mean being faced with a bad project: in fact, it would not achieve the correct economic and image for the company.
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PROTOTYPES
After design and industrialization, prototypes are of primary importance.
Realizable in different materials and with multiple techniques, these allow you to move from the abstraction of the conceived object to the concreteness of the physical product, thus allowing a series of evaluations and considerations unthinkable during the design phase: is it too big? Is the handle uncomfortable? Is the disassembly intuitive? Is it likely to be too heavy?
The prototype can be conceptual, functional or technical, and in any case it is able to perform different functions in the company: it can be used to evaluate costs, cycle times, market response and many other parameters. The prototype is not a necessity felt only by modern companies: since ancient times, in fact, when one could only rely on paper and drawing tools, the creation of a prototype allowed important observations to be made on the current project.
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3D PRINTING
Thanks to its versatility and the ability to create prototypes and customizable products quickly and at limited costs, 3D printing has known a very fast spread, with a market growth that seems unstoppable: by many it is considered the bearer of a new industrial revolution. also laying the foundations for the creation of an economic model centered on self-production.
In reality, 3D printing applied to prototyping has existed for about 30 years but in the last period two interesting changes have occurred that have contributed to its rapid spread with a new and fundamental importance: on the one hand, very low 3D printers have entered the market. cost and accessible to all companies. On the other hand, extremely expensive industrial machines capable of producing metal objects (from steel to titanium to new alloys) have spread on the market. In addition to low costs and a negligible timing, a further advantage of 3D printing is to make the production cycle that leads to the creation of a product more efficient.
PRODUCTION: WHO DO I CONTACT?
Once all the previous phases and industrialization have been overcome, the great knot of production remains. The decision to produce in-house makes it necessary to equip a factory, stock up on suitable machinery, hire staff.
This option is obviously easier if you already have an industrial structure to exploit but due to the large capital required, it is generally preferred to outsource production.
The choice of the supplier is another essential aspect that affects the ability to meet the needs of future customers, which is why it is essential to build a relationship of trust and collaboration over time. It is fair to point out that the supplier can be, or become, a partner. Involving an industrial partner in the launch of a new product brings enormous benefits if you are not familiar with business dynamics, production plants or sufficient capital.
When there are suppliers who procure goods or services that are really necessary for the success of the business, relations with them need to be intensified. A strong business relationship can benefit both of you: demonstrating to your suppliers how important they are to the company is a good way to ensure that they do their utmost to provide the best possible service. When choosing a supplier, at least two aspects must be considered: what the production process of the product we want to launch actually requires (what technologies are needed, what type of materials must be treated, etc.); what are the goals you want to achieve.
Quality and an affordable price are therefore not the only factors to consider when choosing a supplier. The starting point must be the analysis of the needs of the customers to be satisfied and the correct identification of the characteristics of the product / service that represent their competitive advantage over existing competitors. Based on these considerations, the criteria on which to search for the right suppliers change.
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PRACTICAL EXAMPLES
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If reducing the time it takes to serve and satisfy your customers is what sets you apart and qualifies you from your competitors, suppliers that offer you fast and reliable delivery will be preferable to those that only offer you a good price.
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If, on the other hand, your strategy is aimed at guaranteeing a higher quality product / service than your competitors, you will obviously have to focus on the qualitative aspect of the supplies.
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THE CHARACTERISTICS OF A GOOD INDUSTRIAL PARTNER
A good supplier must be able to collaborate when possible in the industrialization process and demonstrate that they can provide the following benefits:
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quality and reliability: the quality of the raw materials used must be high; in fact, customers associate poor quality with the entrepreneur and not with suppliers. Likewise, if the supplier betrays the expectations with a late delivery or with defective goods, the company will be the one to disregard the expectations of its customers;
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speed and flexibility: making small and frequent orders can save the company the need to have a large warehouse; flexible suppliers can help give quick responses to any changes in customer demand or sudden emergencies;
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the right price: the lowest price is not always the best. If you expect quality and reliability from your suppliers, you need to decide how much you are willing to pay for the materials you need and for the balance you want to achieve between cost, reliability, quality and service;
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good interpersonal skills: the best suppliers are those who want to communicate regularly with the entrepreneur to understand what he needs now and what he may need in the future, with direct effects on the company's ability to meet the needs of its own customers and to remedy any critical issues.
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financial security: it is always advisable to make sure that your supplier has a strong financial solidity in order to be able to purchase what you need and supply on time, when you need it; a check on their financial strength can reassure them that they won't go bankrupt just when you need them most.
DISTRIBUTION AS A CORE BUSINESS
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The phenomenon of commercial distribution can be understood generically referring to all those activities that allow the producer to reach the final consumer of the goods (or services) produced. However, we speak, more specifically, of distribution contracts when the producer does not provide directly to the sale, through direct contacts with the consumer or through forms of vertical integration of the proprietary type, but regulates the phase of marketing through cooperation with other companies using, precisely, the instrument of the contract. The manufacturer therefore turns to wholesalers or retailers who, while remaining autonomous and operating at their own risk, guarantee a final outlet for its production and allow it to better plan its sales.
Distribution contracts are therefore business contracts, through which two entrepreneurs plan, each with reference to their own sphere of competence, the performance of a specific activity concerning the marketing of goods.
In order to better delineate the figure, it must be kept in mind that the contractual partners of the manufacturer can play a very different role, acting as simple intermediaries, in charge of the sale, or as real dealers. In the first case, these are not real distribution contracts. Rather, the figures of agents and commission agents are highlighted who take on the role of auxiliaries because they contribute to the search for customers and the conclusion of sales, but do not shift the risk related to direct sales, placing themselves only as agents or representatives acting in the name and / or on behalf of the manufacturer.
Therefore, there is a tendency to limit the category of distribution contracts to those relationships concluded with entrepreneurs who take on the distribution risk and coordinate their activities to the marketing needs of the counterparty. Relationships that are characterized by the intermediary acting in his own name, by the ongoing nature of the relationship, by the obligation to promote the marketing of products, by the tendential economic dependence of the distributor, subjected to a penetrating interference by the manufacturer in his own decision-making and operational sphere . Precisely in light of these characteristics, these are relationships that give rise to an integrated distribution system.
FCO - LICENSING SOLUTIONS
Choose the best solutions with FCO Brands
PROPOSAL
FCO want to share a "Brand Extension" with owners of companies who are interested in expanding their business.
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In the Licensee's perspective, the licensing agreement represents an effective alternative to overcome the barriers to entry in the sector / market of reference and the risk perceived by consumers on a functional and psycho-social level. It is known that overcoming these barriers implies high (and risky) investments in marketing, which are essential to achieve adequate levels of reputation, image and distribution coverage. The use of the FCO "brands" acts as an attraction factor for intermediate and final demand: this allows to achieve, with limited investments, a high level of notoriety in the sector in which business owners operate effectively and immediately. The expected "utility function" consists in increasing National and International competitiveness: the latter makes "Exports" more competitive.
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The collaboration begins with subscription of a Trademark license agreement, through which the licensee will be able to start his business or increase it using advantage and popularity of the Trademark licensed on the products / services offered.
FCO - CONFERMENT OF ASSIGNMENT
Another way to collaborate is conferment (or mandate) of assignment: a contract under which a person (or even more than one) undertakes to carry out one or more legal acts on behalf of another. In essence, it is a matter of conferring all the coordination activities aimed at creating a license agreement. As an template example, the contractual types of collaborations are:
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"coordinated and continuous collaboration" is meant the performance of work, carried out without the assumption of economic risk and organization typical of the company, pursuant to Articles 2222 - 2228 of the Italian Civil Code, through a plurality of services repeated continuously over time and functionally linked to the activity carried out by the client, in the absence of a subordination and in an area pre-established by the client himself for the pursuit of a specific objective.
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"occasional non-habitual collaboration" is meant the performance of work, carried out without the assumption of economic risk and organization typical of the company, pursuant to Articles 2222 - 2228 of the civil code, on an occasional basis or with the execution of one or more occasional services.
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"occasional professional collaboration" is meant the intellectual performance carried out without the assumption of economic risk and organization typical of the company, pursuant to Articles 2229 - 2238 of the civil code, for the exercise of which registration in special professional registers or lists is required.
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other assignments: these consist of services with an object that does not correspond to the aforementioned classification.
In this way,Collaboration is the basis for achieving this new enterprise and FCO is ready to evaluate suitable contributions to achieve a common goal.
Write to us if you are interested.
NEWS
currently, the FC brand is managed by the licensing agency brandoasi
Do you have distribution but can't find the right brand? Whether you are looking for a new market for your products or you are looking for an intellectual property that can improve them, Brand Oasi works for this.
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We work with internationally renowned brands in the most widespread sectors: from fashion to sport, from events to entertainment, from emerging proposals to brands belonging to the Italian heritage.
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Our goal is to help the licensee to create a new business so as to create an ongoing collaboration relationship. The licensee's satisfaction with the proposed brand is therefore our greatest interest.
If you are looking for a brand you are in the right place!
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The agency acts as an intermediary with the function of supporting investment decisions for new business opportunities.
FCO - LICENSING DEVELOPMENT
FCO IS OPEN TO DIALOGUE WITH THE INTERESTED LICENSING AGENCIES