Avoiding The Hidden Franchise

Law360, New York (February 24, 2010, 2:02 PM EST) -- Trademark licensing is an important tool for businesses looking to raise the profile of their product without committing large amounts of resources and without having to stray too far from their core competencies.

For example, professional sports teams frequently license their logos to clothing manufacturers. Teams benefit from licensing royalties and from the increased exposure of their teams when people wear clothing marked with their logo without themselves having to become clothing manufacturers and distributors.

The clothing manufacturer benefits from increased sales due to the fan...
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