DECA Sports and Entertainment Marketing Practice Exam

What are goods or services that legally use logos and images owned by others called?

1. Licensed products

2. Branded products

3. Replica products

4. Counterfeit items

The correct answer is: Licensed products

The term for goods or services that are authorized to use logos, images, and trademarks owned by others is licensed products. A license is a legal agreement that allows one party to use another's intellectual property under specific conditions. In the realm of sports and entertainment marketing, this typically involves agreements where manufacturers are granted the right to produce merchandise bearing popular brands or logos. This arrangement ensures that the original owners maintain control over their brand's image and receive compensation, often in the form of royalties, for this use. The concept of licensed products is vital for brand extension and marketing strategies because it allows companies to create a wider range of products that can appeal to consumers, leveraging the recognition and value of established brands. This approach fosters collaborations between brand owners and manufacturers, leading to innovation in product offerings. In contrast, branded products generally refer to items that are produced and marketed under an established brand but do not necessarily involve using someone else’s trademarks or logos. Replica products imply imitation items that resemble original products but may not hold legal licensing, and counterfeit items are illegal reproductions that infringe upon trademarks and intellectual property rights without authorization. Therefore, the distinction lies in the legality and nature of the relationship between the product and the brand being represented.