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Merchandising Agreement Basics

If you've created a character that's gone viral, written a killer app, or want to make a new product bearing your favorite team's logo, a Merchandising Agreement is your gateway to the marketplace. Merchandising Agreements help manufacturers, retailers, and license owners lay out the terms for selling a new product or process.

Use the Merchandising Agreement document if:

  • You own licensing rights to a product and would like to grant license for another company to use to produce.
  • You are a Retailer or Manufacturer and you would like the license to produce or manufacture a product for distribute and sale.

A Merchandising Agreement may cover a character, mascot or logo that is easily recognized by the public. It could also be used for a piece of software or other patented technology such as a manufacturing process. Such agreements may be exclusive or nonexclusive. With a Merchandising Agreement, you can lay out both parties' roles and responsibilities, including who maintains the rights to the item that you are licensing. You can define the geographical areas where the product will be sold, length of the term, and financial details such as royalties or payments per unit sold. You may also want to include quality control parameters to ensure that the new products are up to snuff. Since there's always the potential for a dispute, you'll likely want to work out a method for conflict resolution in advance.

If you're in the lucky position of selling the rights to your creation, or you have a great idea for new licensed memorabilia or profitable use for a patented technology, a Merchandising Agreement helps you iron out the details.

Other names for this document: Merchandising Contract, Merchandise License Agreement

Sample Merchandising Agreement

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