Licensing careers

How a licensing team works

Six teams share the work of a licensing program, from choosing which brands to license to collecting the last royalty. This page maps all 60 steps of the brand licensing workflow and the work the classic map leaves out. It also marks the ten handoffs where programs most often break.

Pick a team to see what it owns, how it is set up, how it is measured and how AI is changing the work.

The six teams

Who does the work

Executive

Licensing Leadership and Strategy

The leadership team decides which brands go to market, in which categories and territories, and against what targets.

Commercial

Commercial and Partner Management

The commercial team finds, signs and grows the licensees and agents that turn a brand into products.

Cross team

Contracts and IP

Contracts and IP make every grant enforceable.

Creative and brand assurance

Creative and Brand Assurance

The creative team turns a brand into a rulebook and an asset library partners can build from, then reviews every product from concept to final sample.

Finance and royalties

Royalties and Finance

The royalties team collects and verifies every royalty and guarantee owed, on time, and can prove the number.

Cross team

Licensing Operations

Licensing operations keeps work moving between the other five teams.

The licensing master flow

All 60 steps, the decisions, and where programs break

Follow a licensing program from the first brand decision to the last royalty. Each lane is a team, each box a numbered step, and each diamond a decision. Orange badges mark the ten handoffs where programs most often break, and dashed boxes show the work the classic map leaves out. Select any step to read more about the team that owns it.

Step, numbered as on the 60 step mapDecision pointHandoff where programs breakWork beyond the classic map
The licensing master flow: 60 steps across five teams, with decision points, the ten handoffs where programs break, and the work beyond the classic map Licensing Leadership and Strategy: read moreLeadership andstrategyCommercial and Partner Management: read moreCommercial andpartnersContracts and IP: read moreContracts and IPCreative and Brand Assurance: read moreCreative andbrand assuranceRoyalties and Finance: read moreRoyalties andfinanceLicensing operations looks after the handoffs: read moreHandoffs thatbreakBeyond theclassic map 1 Plan the programStep 1: IP portfolio listed. Owned by Licensing Leadership and Strategy. Read more1IP portfolio listedStep 2: Potential IPs identified. Owned by Licensing Leadership and Strategy. Read more2Potential IPsidentifiedStep 3: IP potential evaluated. Owned by Licensing Leadership and Strategy. Read more3IP potentialevaluatedDecision: Worth licensing? Read moreWorth licensing?No: Step 4: IP excluded from the program. Read moreNoStep 4: IP excluded from the programStep 5: Program strategy drafted. Owned by Licensing Leadership and Strategy. Read more5Program strategydraftedStep 15: Strategy finalized. Owned by Licensing Leadership and Strategy. Read more15Strategy finalizedStep 16: All stakeholders informed. Owned by Licensing Leadership and Strategy. Read more16All stakeholdersinformedStep 17: Strategy execution started. Owned by Licensing Leadership and Strategy. Read more17Strategy executionstartedHandoff 1, Strategy to execution: Strategy is shared as a document, so nothing downstream can check itself against it, and agents work from a copy that ages.1Strategy toexecution2 Protect the IPStep 6: Protection and competition study. Owned by Contracts and IP. Read more6Protection andcompetition studyStep 7: IP ownership confirmed. Owned by Contracts and IP. Read more7IP ownershipconfirmedRights in and participations: Inbound rights contracts and royalties owed onward. Owned by Royalties and Finance. Read moreRights in andparticipationsStep 8: Protection plan and timeline. Owned by Contracts and IP. Read more8Protection plan andtimelineStep 9: Forms of protection set. Owned by Contracts and IP. Read more9Forms of protectionsetStep 14: Protection plan executed. Owned by Contracts and IP. Read more14Protection planexecuted3 Build brand assetsStep 10: IP guidelines drafted. Owned by Creative and Brand Assurance. Read more10IP guidelines draftedStep 11: Graphic look developed. Owned by Creative and Brand Assurance. Read more11Graphic lookdevelopedStep 12: IP guidelines defined. Owned by Creative and Brand Assurance. Read more12IP guidelines definedStep 13: Style guide and assets finalized. Owned by Creative and Brand Assurance. Read more13Style guide andassets finalized4 Prospect and negotiateStep 18: Promotions and marketing roadmap. Owned by Commercial and Partner Management. Read more18Promotions andmarketing roadmapStep 19: Market research. Owned by Commercial and Partner Management. Read more19Market researchStep 20: Licensee prospects identified. Owned by Commercial and Partner Management. Read more20Licensee prospectsidentifiedHandoff 2, Strategy to prospecting: The target licensee profile is written in prose, so prospect fit is judged by feel instead of scored.2Strategy toprospectingAgents: Agent territories, commissions and one upload for many licensees. Owned by Commercial and Partner Management. Read moreAgentsStep 21: Prospects contacted. Owned by Commercial and Partner Management. Read more21Prospects contactedStep 22: NDA required. Owned by Commercial and Partner Management. Read more22NDA requiredStep 23: NDA executed. Owned by Commercial and Partner Management. Read more23NDA executedStep 24: Commercial negotiation started. Owned by Commercial and Partner Management. Read more24Commercialnegotiation startedStep 25: Licensee evaluation form required. Owned by Commercial and Partner Management. Read more25Licensee evaluationform requiredStep 26: Evaluation form provided. Owned by Commercial and Partner Management. Read more26Evaluation formprovidedStep 27: Due diligence and double licensing check. Owned by Commercial and Partner Management. Read more27Due diligence anddouble licensingHandoff 3, Qualification to conflict check: The double licensing check depends on someone remembering the whole rights position. This handoff has the highest cost of failure.3Qualification toconflict checkDecision: Rights clear? Read moreRights clear?No: Renegotiate the grant at step 24, or stop. Read moreNoRenegotiate the grant at step 24, or stopStep 28: Grant of rights negotiated. Owned by Commercial and Partner Management. Read more28Grant of rightsnegotiated5 ContractStep 29: Deal memo required. Owned by Commercial and Partner Management. Read more29Deal memo requiredStep 30: Deal memo terms negotiated. Owned by Commercial and Partner Management. Read more30Deal memo termsnegotiatedStep 31: Deal memo executed. Owned by Commercial and Partner Management. Read more31Deal memo executedHandoff 4, Deal memo to agreement: Agreed terms are retyped, and every retyping is a chance for the record and the contract to disagree.4Deal memo toagreementStep 32: License agreement drafted. Owned by Contracts and IP. Read more32License agreementdraftedStep 33: Agreement executed. Owned by Contracts and IP. Read more33Agreement executedStep 34: Licensee pays the advance. Owned by Royalties and Finance. Read more34Licensee pays theadvanceHandoff 5, Agreement to finance: If the financial schedule is not structured here, every royalty check downstream is guesswork.5Agreement tofinance6 Develop and approveStep 35: Licensee receives style guide and assets. Owned by Creative and Brand Assurance. Read more35Licensee receivesstyle guide andHandoff 6, Agreement to partner: Onboarding quality here sets the first pass approval rate for the whole term.6Agreement topartnerStep 36: Product development started. Owned by Creative and Brand Assurance. Read more36Product developmentstartedStep 37: Concept sent for approval. Owned by Creative and Brand Assurance. Read more37Concept sent forapprovalHandoff 7, Partner to reviewer: Submissions arrive without structure and unchecked against rights, so reviewers do intake work before review work.7Partner toreviewerDecision: Concept approved? Read moreConceptapproved?No: Step 38: changes from feedback, then resubmit. Read moreNoStep 38: changes from feedback, then resubmitStep 39: Prototype developed. Owned by Creative and Brand Assurance. Read more39Prototype developedStep 40: Prototype sent for approval. Owned by Creative and Brand Assurance. Read more40Prototype sent forapprovalDecision: Prototype approved? Read morePrototypeapproved?No: Step 41: changes from feedback, then resubmit. Read moreNoStep 41: changes from feedback, then resubmitStep 42: Final samples sent for approval. Owned by Creative and Brand Assurance. Read more42Final samples sentfor approvalQuality, safety and sustainability: Test reports, factory audits and product data. Owned by Creative and Brand Assurance. Read moreQuality, safety andsustainabilityDecision: Samples approved? Read moreSamplesapproved?No: Step 43: changes from feedback, then resubmit. Read moreNoStep 43: changes from feedback, then resubmit7 Launch and marketStep 44: Products shipped to retail. Owned by Creative and Brand Assurance. Read more44Products shipped toretailHandoff 8, Approval to retail: The approved product list is the only definition of what may be sold, and it is rarely checked against what is.8Approval to retailStep 45: Promotions and marketing campaigns. Owned by Commercial and Partner Management. Read more45Promotions andmarketing campaignsStep 46: Product sales at retail. Owned by Royalties and Finance. Read more46Product sales atretailStep 47: Retailer pays the licensee. Owned by Royalties and Finance. Read more47Retailer pays thelicensee8 Report and collectStep 48: Licensee reports sales. Owned by Royalties and Finance. Read more48Licensee reportssalesHandoff 9, Partner to royalty: Every licensee reports in its own format. This is the largest manual task in the month.9Partner to royaltyStep 49: Ongoing development and reporting. Owned by Royalties and Finance. Read more49Ongoing developmentand reportingStep 50: Licensor recoups against the guarantee. Owned by Royalties and Finance. Read more50Licensor recoupsagainst the guaranteeInvoicing, cash and revenue: Invoice runs, cash from the ERP and revenue recognition. Owned by Royalties and Finance. Read moreInvoicing, cash andrevenueStep 51: Licensee pays overages. Owned by Royalties and Finance. Read more51Licensee paysoverages9 Manage and renewStep 52: Performance evaluated during the term. Owned by Licensing Leadership and Strategy. Read more52Performance evaluatedduring the termHandoff 10, Operations to strategy: Performance reaches leadership as a pack assembled by hand, weeks after the period it describes.10Operations tostrategyForecast and budget: Licensee forecasts, reviews and budget variance. Owned by Royalties and Finance. Read moreForecast and budgetDecision: Reporting correctly? Read moreReportingcorrectly?No: Step 53: licensee audit. Read moreNoStep 53: licensee auditDecision: Renew the agreement? Read moreRenew theagreement?Yes: Step 54: agreement renewal. Read moreYesStep 54: agreement renewalNo: Steps 55 and 56: expires, new licensee. Read moreNoSteps 55 and 56: expires, new licenseeStep 57: Program continues. Owned by Contracts and IP. Read more57Program continuesBreach and termination: Breach cases, cure periods and final invoices. Owned by Contracts and IP. Read moreBreach andterminationStep 58: Program performance evaluated. Owned by Licensing Leadership and Strategy. Read more58Program performanceevaluatedDecision: Continue the program? Read moreContinue theprogram?Yes: Step 59: strategy updated, back to planning. Read moreYesStep 59: strategy updated, back to planningNo: Step 60: program ended. Read moreNoStep 60: program ended

Scroll sideways to follow the whole flow.

Show all 60 steps as a list
StepWhat happensTeam
1Plan the program
IP portfolio listed
Leadership and strategy
2Potential IPs identifiedLeadership and strategy
3IP potential evaluatedLeadership and strategy
4IPs excluded from the programLeadership and strategy
5Program strategy draftedLeadership and strategy
15Strategy finalizedLeadership and strategy
16All stakeholders informedLeadership and strategy
17Strategy execution startedLeadership and strategy
6Protect the IP
Protection and competition study
Contracts and IP
7IP ownership confirmedContracts and IP
8Protection plan and timelineContracts and IP
9Forms of protection setContracts and IP
14Protection plan executedContracts and IP
10Build brand assets
IP guidelines drafted
Creative and brand assurance
11Graphic look developedCreative and brand assurance
12IP guidelines definedCreative and brand assurance
13Style guide and assets finalizedCreative and brand assurance
18Prospect and negotiate
Promotions and marketing roadmap
Commercial and partners
19Market researchCommercial and partners
20Licensee prospects identifiedCommercial and partners
21Prospects contactedCommercial and partners
22NDA requiredCommercial and partners
23NDA executedCommercial and partners
24Commercial negotiation startedCommercial and partners
25Licensee evaluation form requiredCommercial and partners
26Evaluation form providedCommercial and partners
27Due diligence and double licensing checkCommercial and partners
28Grant of rights negotiatedCommercial and partners
29Contract
Deal memo required
Commercial and partners
30Deal memo terms negotiatedCommercial and partners
31Deal memo executedCommercial and partners
32License agreement draftedContracts and IP
33Agreement executedContracts and IP
34Licensee pays the advanceRoyalties and finance
35Develop and approve
Licensee receives style guide and assets
Creative and brand assurance
36Product development startedCreative and brand assurance
37Concept sent for approvalCreative and brand assurance
38Changes made from feedbackCreative and brand assurance
39Prototype developedCreative and brand assurance
40Prototype sent for approvalCreative and brand assurance
41Changes made from feedbackCreative and brand assurance
42Final samples sent for approvalCreative and brand assurance
43Changes made from feedbackCreative and brand assurance
44Launch and market
Products shipped to retail
Creative and brand assurance
45Promotions and marketing campaignsCommercial and partners
46Product sales at retailRoyalties and finance
47Retailer pays the licenseeRoyalties and finance
48Report and collect
Licensee reports sales
Royalties and finance
49Ongoing development and reportingRoyalties and finance
50Licensor recoups against the guaranteeRoyalties and finance
51Licensee pays overagesRoyalties and finance
52Manage and renew
Performance evaluated during the term
Leadership and strategy
53Licensee auditRoyalties and finance
54Agreement renewalContracts and IP
55Agreement expiresContracts and IP
56New licensee replaces the previous oneContracts and IP
57Program continuesContracts and IP
58Program performance evaluatedLeadership and strategy
59Strategy updatedLeadership and strategy
60Program endedLeadership and strategy
  1. 1
    Strategy to executionStrategy is shared as a document, so nothing downstream can check itself against it, and agents work from a copy that ages.
  2. 2
    Strategy to prospectingThe target licensee profile is written in prose, so prospect fit is judged by feel instead of scored.
  3. 3
    Qualification to conflict checkThe double licensing check depends on someone remembering the whole rights position. This handoff has the highest cost of failure.
  4. 4
    Deal memo to agreementAgreed terms are retyped, and every retyping is a chance for the record and the contract to disagree.
  5. 5
    Agreement to financeIf the financial schedule is not structured here, every royalty check downstream is guesswork.
  6. 6
    Agreement to partnerOnboarding quality here sets the first pass approval rate for the whole term.
  7. 7
    Partner to reviewerSubmissions arrive without structure and unchecked against rights, so reviewers do intake work before review work.
  8. 8
    Approval to retailThe approved product list is the only definition of what may be sold, and it is rarely checked against what is.
  9. 9
    Partner to royaltyEvery licensee reports in its own format. This is the largest manual task in the month.
  10. 10
    Operations to strategyPerformance reaches leadership as a pack assembled by hand, weeks after the period it describes.

About this guide. Written by Kalle Torma, founder and CEO of Flowhaven. Kalle’s 2017 research, Brand Licensing Processes and Workflows, maps brand licensing as 9 workflow segments and 60 steps, and the licensing flow on these pages builds on it.

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