WHAT IS LICENSING
Licensing is the contractual right to use a particular brand, image or intellectual and artistic registered property, either owned or controlled by third parties on a product, a service or a piece of promotional or advertising communication.
This right is granted for a limited time in exchange for a fee, usually defined as a percentage applied to the value generated from sales or services using that license.
In Brazil, the correct term to refer to compensation for the rights to trademarks and industrial properties is royalty. For characters, celebrities and artistic works, the term copyright is indicated, equivalent to copyright (moral and patrimonial).
Some of the key benefits of licensing:
- Audience recognition
- Differentiation from competitors
- Profitability through higher margins by brand strength
- Easy entry into distribution channels
- Strengthening the company brand
THE SECTOR IN BRAZIL
There is no official research endorsing such figures in the licensing industry in Brazil. The figures presented below are estimates.
Licensing Segment Top 4
1º Confection/ 2º Stationery Store/ 3º Toys/ 4º Personal Care
Brazil is among the 6 countries with the highest turnover in trademark licensing in the world. United States, Japan, England, Mexico and Canada are among the most expressive countries.
Royalties taxes about the Sales Price in retail:
- Food: 3 to 5%
- Clothes and Shoes: 10%
- Accessories: 8 to 12%
- Cosmetics: 5 to 8%
- Books: 10%
- Toys: 10 to 12%
- Market: 7 to 10%
- Editorial: 4 to 8%
- Services ( credit card and cell phone contents): 10 to 30%
- Diapers: 2 to 4%
Revenue 2012 (R$)
Retail: 12 Billion – a 14% growth in the last few years.
Revenue 2013 (R$)
Retail: 12,480 Billion – a 4% growth if compared to 2012.
Revenue 2014 (R$)
Retail: 13,200 Billion – a 6% growth if compared to 2013.
Revenue 2015 (R$)
Retail: 17 Billion (update data as market research with our members).
Revenue 2016 (R$)
Retail: 17,850 Billion – a 5% growth if compared to 2015
Revenue 2017 (R$)
Retail: 18 Billion
In 2017 a scenario of stability has been estimated just following Brazil inflation rates.