In the licensing business, celebrity licensing refers to granting the right to a third party to use the name, image, brand, or likeness of a celebrity. By acquiring these rights under license, the third party can utilize them in the promotion or sale of their goods or services.
A celebrity who licenses intellectual property (IP) related to their image, name, or likeness is allowing a third party (usually a group or business) to use those assets for the benefit of the third party’s business interests. In exchange for granting the licensing rights, the celebrity receives financial compensation, typically in the form of royalties. Depending upon the nature of the licensing contract, there may be limitations to what the third party can do with the intellectual property of the celebrity. They may only be able to utilize the property in certain markets, or for a specific period of time. In addition, there may be terms limiting the types of services or goods in connection with which the celebrity’s IP can be used.