CFC launches licensing agreement liability product

CFC has released a bespoke insurance solution for licensing agreements. With the COVID-19 pandemic halting and rescheduling events worldwide, the impact for promotional partners, licensees and businesses involved in merchandising could be significant, if not worse.

Worth an estimated £227bn, the global licensing industry is rapidly expanding as brand owners increasingly monetise intellectual property assets – like logos, trademarks, graphics and animations - through third parties.

“License agreements often include a mandated insurance requirement, but to date the market has struggled to deliver a bespoke solution, forcing clients to purchase a full-fledged media liability policy instead,” said Jade Giltrap, media team leader at CFC. “We’re excited to offer a standalone product with cover that’s designed specifically for these licensing exposures.”

“There are numerous sectors where we see licensing activities as a core part of business, including sports, food and beverage, arts and entertainment, fashion, gaming and even corporate or institutional brands,” continued Giltrap. “While the long-term effect of the Covid-19 pandemic on licensee relationships remains to be seen, our product can help enable these businesses and provide piece of mind that they are protected while using third-party IP.”

CFC's new product offers a fit-for-purpose solution that covers individual licensing contracts or annual licensing agreements between multiple brands and the licensee. It includes cover for breach of the license agreement, including selling in unauthorised channels or territories, incorrect usage or quality assurance breaches, and improper sublicensing among other activities. The policy also includes cover for intellectual property infringement in relation to the asset(s) specified in the agreement.

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