The most obvious benefit to a manufacturer or service provider the licenses a brand, character, design or other piece of intellectual property is the marketing power it brings to the product. It can take hundreds of thousands or millions of dollars to build a brand from scratch, and licensing represents a way for a manufacturer to take advantage of all the brand building and image building that has gone on before.
- Moving into new distribution channels – A manufacturer who licenses artwork or designs to be applied to hoe textiles, wall coverings, housewares, or on apparel has less reliance on in-house art staffs that wold otherwise need to be maintained.
- Reducing in-house costs – A manufacturer who licenses artwork or designs to be applied to hoe textiles, wall coverings, housewares, or on apparel has less reliance on in-house art staffs that wold otherwise need to be maintained.
- Enhancing authenticity and credibility – The publisher of a car-racing video-game might license a host of well-known automotive brands and car models to lend legitimacy and authenticity to the game.
