AM 101 Lecture Notes - Lecture 12: Royalty Payment, Lvmh, Patent Infringement
29 Sep 2016
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Consolidation: combining two companies, results in a new company. Conglomerate: diversi ed company, signi cantly different lines of business, lvmh group. Competitive strategies: price, quality, innovation- innovation/uniqueness, services offered, brand reputation, customers are free to buy what they please, where they please. Licensing: licensor sells the right to use. Design: licensee buys the right to use. Perceived as adding value to a product. Darby parker: wanted to sell sunglass directly to consumers. They obviously do not make clothing but licensing the companies to make it with their nam: perfume, celebrity name licensing. Licensing contract: time limit, royalty payment. 7-14% of wholesale cost: control of image presentation, control of marketing. Clauses that will not allow discount merchandising: quality control, advances- royalty paid up front, guarantee of royalty payments, agreements for customs. Will not be con scated as counterfeit goods. Patents: exclusive right to an idea, product, or process, inventor or producer may use, make, sell.
