Toy Industry Glossary: Licensing Terms
Short, plain-English definitions written by TDmonthly for people who buy, sell and make toys. Regulatory terms link to the official source.
- Licensee
- The company that pays to make and sell products using a licensed brand or character. Related: Licensing Who's Who
- Licensing agent
- A company that finds licensees and manages deals for a brand owner in exchange for commission. Related: Licensing Who's Who
- Licensor
- The owner of a brand or character who grants another company the right to use it on products. Related: Licensing Who's Who
- Minimum guarantee (MG)
- The least amount of royalty a licensee commits to pay, even if sales fall short. Related: Licensing Who's Who
- Royalty
- The fee a licensee pays the licensor, usually a percentage of wholesale sales. Related: Licensing Who's Who
Definitions are general explanations, not legal or financial advice. Corrections and questions: [email protected]
