The answer is brand licensing. It is a profitable deal where the owner of the intellectual property, also known as the licensor, allows a third party, the licensee, to use that intellectual property or intangible asset as the brand for a particular product or range of products under contracted commercial conditions within a license contract that governs its use. The Licensor is compensated for these arrangements in the form of fees, this is usually calculated as a percentage of the licensed product's sales volume or royalty.
