by Stephanie Pottick, Esq., Pottick Law PC & Protect for Success
When you think about licensing, you’re probably imagining Mickey Mouse on a T-shirt or a cool plush toy, but licensing is so much more than that.
For brands and companies with valuable IP, licensing can unlock new revenue streams, and if you don’t know the different ways you can leverage your IP through licensing, you’re probably leaving money on the table.
As you know, licensing is essentially “renting out” your IP (whether it’s a character, design, or even an invention) in exchange for compensation — typically royalties. If you’re only thinking about the basic stuff, then you are definitely not thinking big enough!
Stephanie Pottick, Esq.
Here are a few different ways you can make money with licensing:
- Consumer Products: From toys and games to apparel, home goods, stationery, collectibles, bags, phone and tablet accessories, activity kits, bedding, and so much more, physical consumer products are what most people think of when they talk about licensing.
- Digital Products: Have you considered video games, digital collectibles, mobile apps, YouTube Shorts, and other digital/virtual content for your IP? Licensees can use your characters in connection with all of those, and you get paid.
- Brand Collaborations and Promotions: These are great ways to get exposure and reach new audiences. Think about Squishmallows x Hello Kitty, Pokémon, or KPop Demon Hunters being featured in McDonald’s Happy Meals — that’s impactful. Partnerships like these can not only make you money, but also create amazing marketing opportunities.
- Experiences and Entertainment: Sometimes referred to as “Location-Based Experiences (LBE), this area is booming as consumers actively seek memorable experiences. Think: theme parks, cafés, pop-up events, live shows, traveling exhibits, and other unique ways for fans to connect with their favorite characters and brands.
- Publishing and Education: Story books are pretty straightforward, but have you considered creating educational materials for schools or online courses? How much fun would it be to learn math with Luke Skywalker?
Your IP is an asset that can expand into new categories, reach new audiences, and generate revenue by licensing into various areas. The real opportunity is imagining all the different places your IP can exist and generate income.
Pay attention to your contract. Each category has its own unique set of rules, issues, and concerns. There’s no one-size-fits-all option, so you need to pay close attention to what your license agreement says. One word can make the difference between keeping and losing your IP — plus you want to make sure you are maximizing your revenue by using beneficial contract terms rather than restricting future use. This is where it’s important to educate yourself and engage with experienced professionals.
There are many ways to make money through licensing, and when done strategically, licensing can help you expand your brand and build an empire!
Disclaimer: This article is for informational purposes only and not intended as legal advice. Don’t rely on anything without doing your due diligence first.
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A version of this feature first appeared in The Toy Book‘s 2026 Licensing & Entertainment Issue, featuring The Licensing Book. Read the full issue here!
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