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Licensing Pitfalls

Suzanne G. Marshall
Revised by: Nancy J. Rabolt , Judy K. Miler

Source: Bloomsbury Fashion Business Cases

Level: Intermediate

Business case

A swimwear manufacturer is a licensee for several brand names (licensors). The licensing arrangements from the licensee’s perspective is given in four general areas: lack of control/power, lack of visibility, increased expense, and multiple “masters.” Although there are advantages of manufacturing product for the licensee, there are also many pitfalls outlined in this case. Examples are given of pitfalls such as general decisions being made by the brand licensees; the manufacturer being dropped b

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