Brand licensing is when you lease or rent a name or any other symbol that recognizes the producer.

A brand shows the parent company of the product - a great example of brand licensing is shown with the Apple iPod. Apple doesn't make many of the accessories that go along with the player, but license the iPod brand to other companies, who in turn manufacture the docking stations, ear buds, etc...

This means that while Apple doesn't have to produce the accessories, by licensing the brand, they can allow other manufacturers to make the products and both sides profit!

The best thing is, you can too. Another good facet of brand licensing is that it allows companies to grow their products potential. Sometimes a manufacturer may want to venture into a new market, but doesn't want to put the full manpower into it - so they often license their brand to a company in the market they're looking to break into, and if they're lucky, then they've got a new inroad to a totally new market!

And with licensing their brand instead of producing the materials themselves, it can drastically reduce loss of capitol by having an outside source paying them to use their brand.

If you're looking to manufacture a new product, but want to be able to get the full marketing and monetary potential; then getting a brand license may be one of the best choices you can make.

Sure, your product may look good on it's own, and it might even be a hot seller; but remember, if you can get an existing company with a good reputation for quality merchandise, then adding that company's brand to your product could bring in up to ten times the amount you would have made if you hadn't licensed a certain brand.