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Roundtable Discussion

By Christopher Byrne

In this first Brand Impact Roundtable discussion, Royalties recognizes that retail space is dwindling, many parts of the economy are trending downwards, and consumers are in no mood to buy.  So why are folks in corporate branding feeling good?  Well, for one, according to many, corporate licensing is largely recession-proof, but taking the longer view, experts recognize that the economy is always cyclical and that, though it may be a roller coaster ride for a time, the ups and downs are endemic to the business.  Finally, many agree that there is a greater understanding than ever before of the value of strategic expansion.   The business is, as always, in flux, and no matter what is going on the ability to respond, strategize, and take a forward-looking perspective is essential to long-term success.

Brand Impact:  How has branding strategy changed in recent years?

Alfandari: Brand licensing strategies have changed inasmuch as more companies recognize that licensing is a business development model that should be considered in much the same way as an acquisition, merger, joint venture, or other strategic alliance.  More companies understand that licensing is not simply a marketing tool; through marketing is surely a deliverable.  Additionally, the overall equity of corporations is being valued on their IP as much or more than on their tangible assets.  Therefore, a greater appreciation of leveraging intellectual property to create greater value is a trend.  Licensing is clearly a means of demonstrating tangible value from an intangible asset.

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