Nowadays, where the global market is moving at a fast pace, brands are looking for unique and innovative ways to gain consumer interest and at the same time gain even more visibility in the market. One strategy, which has proven to be quite successful, is the so-called "Co-Branding", i.e. the strategic collaboration between two or more brands (usually two) , in order to create a product, service or customer service. This process focuses on combining the marketing potential of both brands in order to strengthen the brands' position, increase their sales and reduce production costs. In short, it is part of strategic marketing, which is based on cooperation between two entities.

An example of co-branding is the collaboration between the famous fashion house Louis Vuitton and the car manufacturer BMW. Specifically, BMW created a sports car model called the BMW i8, while Louis Vuitton designed an exclusive four-piece suitcase and bag set that fits perfectly into the car's rear luggage rack.

While the co-branding strategy offers benefits and consumer recognition, it is important for brands to safeguard and maintain their rights, such as intellectual and industrial property or revenue sharing. More specifically, in Co-Branding contracts, it is important to take into account the following legal terms of such a contract, which are considered the most basic:

• Scope of the agreement: description of the product or service to be created through the collaboration , the way in which the brands will be combined, and the definition of the person responsible for the creation of the product or service.

• Rights and obligations of the parties: e.g. which of the parties is responsible for the development of a particular product or service and what other specific tasks each of the parties will undertake.

• Intellectual and Industrial Property Rights: defining the licensing rights, trademark or logo license rights of the parties.

• Payment terms and revenue sharing: details of how payments will be made or how the fair distribution of profits from the sale of the product or the success of the service will be carried out.

• Warranties and indemnities: Both parties must warrant that they have the legal right to enter into the agreement and to grant the necessary licenses to create the joint name and that each party agrees to protect the other from legal claims or damages arising from a breach of the agreement or illegal act.

• Confidentiality clause: both parties must agree to keep confidential any sensitive information shared during the course of the collaboration and to use it only for the purposes of the agreement and to commit not to disclose confidential information without permission, except as required by law.

• Duration and Termination of the Contract: clarification of the duration of the cooperation, termination of the agreement by written notice from one party within a specified period of time (e.g. two or three months) prior to the date of termination of the agreement, termination by one party if the other party breaches any terms of the agreement. It is important to mention the effects of termination of the agreement e.g. upon termination of the agreement, both parties must stop using each other's intellectual property and withdraw all co-branded products from sale.

• Dispute resolution: if disputes arise, the parties can agree to mediation or negotiation before taking any other legal action.

• Applicable Law and Jurisdiction: the law governing the contract, e.g. Greek law and the competent courts in the event of a legal dispute e.g. Athens.

In conclusion, co-branding is a modern and profitable strategy, which however needs to be defined through agreements so that brands protect and safeguard their rights.

For more information on the definition and as different types of co-branding click here and here

For more information on co-branding between Louis Vuitton and car manufacturer BMW click here

For more information on the important terms of a Co-Branding Agreement click here