![]() If agreements are not negotiated with an eye to when they may go wrong, there can be unanticipated and costly consequences. In such circumstances, there will often need, for example, to be a ‘phase out’ period. It is also essential that arrangements are negotiated that anticipate a breach of a term of the agreement or for when the agreement comes to an end or is terminated. When licensing a brand, it is important that a company’s key negotiating personnel ensure proper terms are in place that enable it to oversee and manage the way in which the mark is being used and the quality of the goods and/or services being supplied by a third party. Regular monitoring ensures any concerns or risks are promptly reported to management and, if necessary, elevated to the board so they may be attended to as soon as possible and dangers averted in that process. Like all good practices, good brand risk management and governance should exist at these three points as well. These agreements will often be negotiated by managers within a company’s organisation who in turn then report to senior management who then report to the board. Accordingly, when ‘dealing’ with a brand, proper checks and balances need to be negotiated and included in agreements to take account of various potential scenarios. While proper board governance is essential to protecting the value of a brand, it is also important that the whole of an organisation has systems – at both the executive and ground level – and a general appreciation of the factors which contribute to the value of and proper treatment of a brand. In the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry final report, Commissioner Hayne reminded us that: “It is rightly said that the ‘tone’ of an entity is and must be set at the top but that tone must be echoed from the bottom and reinforced at every level of the entity’s management and supervision.” co-existence arrangements – which might occur where your brand co-exists in the market with another similar brand but in respect of very different good and/or services.assignment – which might occur when part of a business is being sold and. ![]()
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