One brand, two companies: Who has control when a brand is licensed?

One brand, two companiesOne way of dividing responsibility for a brand is a licensing agreement. Another way of distributing brand decisions by geography is split ownership, explains Richard Assmus, partner at law firm Mayer Brown. Beyond this, how much control the licensee has over the brand is a business decision, and may vary from case to case. In a licensing agreement, a single owner exercises control over brand identity and quality control. Overall, in the case where a brand is licenced, control is largely maintained by the brand owner.