What Does Official Licensed Product Mean?

An official licensed product means that an entity has given their official permission to a third party to produce and sell a product. The entity could be a business or an organziation.

An example of an entity giving official permission to a third party to produce and sell an item would be a college or university giving official approval to a hat manufacture to produce hats bearing the logo and or name of the college or university. To be bring the example into more specific detail, it could be UCLA giving official approval to New Era to produce and sell hats that bear the name and or logos of UCLA.

What does it mean for a business or organization to have official permission? In order for a third party to receive official permission to produce a licensed product, the third party must meet the standards and procedures given by the entity.

In regards to standards, this could be of meeting a certain prodcut quality expected by the entity. Going back to our example of UCLA, its likely that UCLA would only grant official permission to third parties that meet the quality standards that the UCLA brand represents.

In regards to procedures, each entity will have certain procedures that they will want the third parties to follow prior to producing officially licensed product bearing the name or logo of the entity. An example of procedure could be receving approval of each product from the entity prior to producing and selling the product. Other procedures could include the third party paying royalties to the entity on a set schedule.