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Co Branding Agreements

(Last Updated On: September 14, 2021)

From a legal point of view, co-branding is a trademark licensing agreement and not a joint venture or partnership. A co-branding structure is different from the sponsorship facilities or unilateral user agreements used in supply chain management, as it is based on an interbrand license in which each party licenses the other. Co-branding campaigns often generate advertisements in the form of industrial messages or articles, a social media presence and word of mouth due to the use of two recognized brands for a single product or service. Examples of successful co-branding projects are Walkers` ketchup, Heinz Ketchup and Marmite Aroma potato chips in the UK and Breyers` Oreo cookies and cream-flavoured ice cream in the US, a partnership that has been around for many years. In addition to its crunchy flavours, Walkers recently partnered with Leicester City Football Club to expand its routine sponsorship of the club with a co-branding Winners – Salt and Victory crisp, which pays tribute to Leicester`s historic 2015/2016 title season. A brand partnership agreement defines the rights, restrictions and obligations of all parties to the joint venture. This agreement should be carefully prepared and formulated specifically in order to protect each partner and define the parameters of the co-branding strategy. Some parameters are as follows: Company A`s ability to reap its own benefits from the co-branding partnership may depend on the interpretation of the basic terms of the underlying license agreement, issues such as trademark rights, exclusivity, territory, business channels, and ownership of co-branding designs that are the subject of litigation and an unpleasant divorce between the parties. Indeed, a co-branding partnership can strengthen the reputation and value of one or both brands depending on the circumstances; Therefore, its end could trigger a bitter conflict between the parties by creating competition rather than cooperation. The underlying licence should be drafted in such a way that it prohibits the use of marks that may depreciate or damage the reputation of a party. The parties should have the right to verify and authorize the advertising and promotion of the co-branding and packaging of the products. In addition, publicly available advertisements should, as far as possible, announce the ownership rights of each of the marks and indicate that each mark is used under license.

22. INTEGRATION This Agreement represents the full understanding of the Parties and revokes and replaces all prior agreements between the Parties and is intended as the final expression of their agreement. It may only be signed in writing by the parties and amended or supplemented with express reference to this Agreement. This agreement takes precedence over all other documents that may be contrary to this agreement. For retailers, co-branding can be a form of line extension to create new products with a new function – a brand from another company (usually, but not always, a famous brand) – that reaches a new audience for a particular product (for example.B introduction of H&M Fast Fashion consumers into Versace luxury product lines). One of the fundamental principles of co-branding is that brands must cooperate in different business areas; It is therefore very unlikely that co-branding will become a direct competitor (e.g. .B. Coca-Cola and Pepsi, Boots and Superdrug, FedEx and UPS, Etihad and Emirates or Mercedes and BMW). It is therefore always recommended to take a proactive and measured approach when launching a co-branding campaign.

Indeed, a careful evaluation of all phases of the campaign (i.e. during pre-launch, co-branding period and shutdown) is as important as for routine trademark licensing agreements….

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