Official authorization means that the licensor grants the trademark or brand owned or represented by him to the licensee in the form of contract; The licensee engages in business activities (usually producing and selling a certain product or providing a certain service) according to the contract, and pays the corresponding expenses-royalties to the licensor; At the same time, the licensor gives guidance and assistance in personnel training, organizational design, operation and management.

Extended materials:

Benefits of authorization:

1. The products of enterprises can be instantly recognized by consumers through brands. Of course, the quality of the product itself is very important, but if it is combined with an already famous brand, it will be more quickly accepted by consumers.

2. Improve the profit level of enterprises. The same product, combined with famous brands, can bring higher prices and higher sales than before, and bring more profits to enterprises.

3. It directly benefits from the giant promotion activities of the brand licensor. In order to maintain the status and popularity of brands, brand licensors must constantly cultivate brand roles and remind consumers of the existence of these brands. These brand promotion will directly bring better sales performance to the licensee.

4. Get the immediate interest and acceptance of retailers (sales channels). Well-known brands will enter the distribution channel more easily than unknown brands. With the help of the authorized brand, the licensee can quickly enter the dense channel and contact with consumers more widely.

Reference: Baidu Encyclopedia-Brand Authorization