Note: This article was posted with inaccurate information that has since been updated
In this article, we will cover what a Letter of Authorization is and how it helps you sell with Amazon.
A Letter of Authorization (LOA) is a license agreement between an owner of a trademark/design patent/copyright and a third-party seller to authorize that the third party (licensee) can use the Intellectual Property (IP), in exchange for consideration. Such an agreement outlines the ways in which the licensee may use the property owned by the licensor.
Licensing is beneficial for IP owners, as it allows them to generate revenue out of their property by making it available to others. The benefit to the seller is that the license agreement allows you to list your products using the intellectual property rights of other entities with their permission, subject to the terms of the agreement.
Considerations for sellers who need to provide a Letter of Authorization in order to sell with Amazon:
1. The Letter of Authorization is usually only granted to businesses/sellers large enough to buy in bulk from the brand.
2. If you purchase directly from the brand, consider contacting them to find out what their minimum purchase order is to get registered as a distributor. Be sure to get a Letter of Authorization from the brand for use with Amazon at that point, and ensure the letter is up to date.
* The five key terms which must be present in every IP licensing agreement (LOA) submitted to Amazon are:
- 'Licensor'–The company/brand providing the rights to intellectual property
- 'Licensee'–The company/brand receiving the rights to use the intellectual property.
- 'Grant’–The intellectual property being licensed and the scope of rights granted
- 'Geographic Scope’–The specific territory or territories where use is authorized (may be worldwide)
- 'Term’–The duration of the authorization (may be perpetual)
For more information, check out the Letter of Authorization page.
