Inside the Mind of a Licensor – What Makes Them Say Yes (or No)

When you think of licensing, it’s easy to focus on the end product—the t-shirts, toys, or snacks on shelves. But behind every licensed product is a licensor making strategic decisions about what deals move forward… and which ones don’t.

In this episode of Born to License, I take you inside my experience as a licensor at Warner Bros., where I reviewed  a raft of licensing proposals - from sparkling water with Looney Tunes branding to puffy dogs featuring Scooby-Doo. You’ll hear how licensors assess brand fit, retail readiness, and long-term value before saying yes to a deal.

We’ll cover:

• Why a great idea isn’t enough to get a deal over the line

• The importance of infrastructure, manufacturing, and distribution

• Why licensors often say no - even to good ideas

• What makes the best licensing partnerships feel effortless

If you’re a brand looking to license IP, or a business wanting to partner with a major licensor, this episode offers a behind-the-scenes look at what licensors are really thinking.

And if you have a question about licensing, I want to hear from you! Episode 10 will be a special Q&A where I answer listener questions—so send yours to hello@borntolicense.com, and I’ll do my best to include it in the show.

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Chapters

• 0:00 Welcome Back – What Licensors Actually Do
• 2:36 Stepping Into Warner Bros. – My First Time as a Licensor
• 3:11 A Sparkling Water Pitch – When a Good Idea Isn’t Enough
• 4:22 Why Infrastructure Matters – The Questions Licensors Ask
• 5:11 Scooby-Doo Puffy Dogs – A Licensing Match That Worked
• 7:20 The Key Differences – Risky Idea vs. Strategic Partnership
• 8:08 Final Takeaways – What Licensors Look For
• 9:23 What Comes Next – From Deal to Development

Transcript

Hi, I'm David Born and welcome back to Born to License. When most people think about licensing, they picture products, T shirts, toys, homewares or food and drinks. But behind every successful licensed product is a licensor, the company or brand owner who decides what can and can't be done with their intellectual property. And let me tell you, licensors are incredibly strategic about who they work with, how they approve products and what their long term goals are. When I first joined Warner Bros. I thought licensing was all about finding good companies and signing deals. But what I quickly realized was that licensors have a much bigger role than just approving partnerships. Their job is to protect and grow their brand, ensuring that everything from product development to marketing to retail strategy aligns with their vision. They're not just thinking about this year's sales. 

 They're thinking about the next five, 10, even 20 years. So in today's episode, I'll take you inside my time working for one of the biggest licensors on the planet, Warner Bros. Where I got a firsthand look at what really makes a licensor tick. What do they look for when evaluating a new licensing partner? How do they balance commercial success with brand protection? And what's the real process behind product approvals? If you're looking to work with a major licensor or just want to better understand how the industry operates, this is the episode for you. Let's step into the licensor's shoes and see what it really takes to manage some of the biggest brands in the world. It's 2014 and I'm at my desk at Warner Bros. Sifting through my inbox when an email catches my eye. 

 The subject line, exciting new beverage partnership opportunity for Looney Tunes. I click it open. It's from a local beverage company and they're pitching an idea to launch a Looney Tunes branded flavored sparkling water range. I lean over to my colleague and say, this actually sounds interesting, but do we think Looney Tunes belongs in sparkling water? She raises an eyebrow. Maybe. But which characters? And how do they plan on positioning it? A few days later, I find myself sitting across from their team in a conference room reviewing their proposal. They've come prepared. Mock up cans of Bugs Bunny, Daffy Duck and Tweety Bird line the table. Their concept of fun fizzy kid friendly drink with vibrant flavours. Inspired by the characters, they start their pitch. We see this as a healthier alternative to soft drink. 

 Parents will love that there's no added sugar and kids will be drawn to the Looney Tunes Branding. It's fun, refreshing and nostalgic. On paper, it sounds compelling. Looney Tunes is a brand loved by multiple generations and Sparkling Water is a booming category. But as I start to ask questions, I realise there's a much bigger issue than just brand fit. Where will the product be manufactured? I ask. What retailers are stocking it? What retail distribution do you have? When is the launch planned? There's a bit of hesitation before they respond. We're still in discussions about manufacturing, they say. We have some retail interest, but nothing confirmed. We're aiming for launch by the end of the year, but that depends on finalising production facilities. I glance around the room. The excitement is there, the passion is there, but the infrastructure isn't. This company is too new. 

 They don't have their manufacturing locked down, their distribution network isn't strong, and there are too many unknowns. I knew that licensing wasn't just about putting characters on products. It's about ensuring those products actually get made and sold. And right now, there's no guarantee this drink will even make it to the shelves. After the meeting, I speak to my boss. The idea was interesting, I say, but it's too early for them. I've asked them to keep me updated and we can revisit in six months time. He nods in agreement. A small, unproven company with no manufacturing setup and no confirmed retail buyers. They're just not ready. So for now, we decide to pass on the deal. Fast forward a few weeks and I'm working on another opportunity. This time from a well known Australian food manufacturer. 

 They're interested in licensing Scooby Doo for their Puffy Dogs product. The idea is simple, crispy, fluffy pastry wrapped hot dogs with Scooby Doo branding. The moment I hear it, I know. Now this makes sense. Scooby Doo has always been synonymous with food. His endless appetite, his love for Scooby Snacks, the way food is weaved into his character's DNA. But it wasn't just the character fit that made this deal work. It was the business behind it. Unlike the Looney Tunes Sparkling Water proposal, this wasn't coming from a startup with an untested product. This was an established company that had been manufacturing Puffy Dogs for decades. They weren't just introducing a new product. They were simply adding a licensed version of one that had already been in the market successfully for years. And just as important, they already had strong retail distribution. 

 Their products were stocked in major supermarkets across Australia and they had deep relationships with buyers and customers who trusted their brand. So when exploring with them, they weren't saying, we hope we can get it into stores. They were instead saying, we already have the infrastructure, the retailers and the supply chain to make this happen. The product is already established. The brand fit is perfect. The company has strong retail distribution. And nine months later, Scooby Doo Puffy Dogs hit supermarket shelves. And the response is immediate. Parents recognize the brand, kids love the character, and sales surge. It's a reminder of something I've seen time and time again in licensing. A great licensing deal doesn't just have a strong idea. It has a strong foundation. And sometimes the best licensing decisions for licensors can be saying no. So there you have it. 

 Two very different licensing opportunities, but only one that move forward. Some licensing deals fall into place effortlessly and some just aren't the right fit. Looney Tunes Sparkling Water had potential, but licensing is about more than just a great idea. It's about execution. Without the right manufacturing, retail distribution and infrastructure, the deal would have been a bit of a gamble. And in licensing, taking a chance on the wrong partner can have long term consequences. But then there was Scooby Doo and Puffy Dogs. A perfect match. The company already had decades of experience, strong retail relationships, and the product made sense for the brand. That's the difference between a risky deal and a strategic partnership. So here are some key takeaways from this episode. Number one, a good idea isn't always the right idea. 

 Just because a brand can be licensed onto a product doesn't mean it should be. A deal is only as strong as the partner behind it. Number two, infrastructure matters. A licensee needs manufacturing, retail distribution, a proven track record before launching a licensed product. Without that, even the best idea can fall apart. Number two, infrastructure matters. A licensee needs manufacturing, retail distribution, or a strong existing customer base and a proven track record before launching a licensed product. Without that, even the best idea can fall apart. Number three, saying no protects the brand. For a licensor, turning down a deal isn't always about rejecting the concept. It's about waiting for the right opportunity at the right time. And finally, number four, the best licensing deals feel effortless. When a product and brand naturally align, like Scooby Doo and Puffy Dogs, it just makes sense. 

 These are the deals with the highest chance of success. But once a licensing deal is signed, the real work begins, bringing the product to life. In the next episode, we're diving into the product development journey. What happens after the contract is signed? How do licensees go from concept to production? And what role does the licensor play in ensuring everything is done the right way. And as always, if you have any questions about licensing, send them my way. Our email is helloorntolicense.com we'll be answering listener questions in the final episode of this season. So if there's something you've always wanted to ask about the industry, now's the time to ask. Thanks for listening to Born to License. See you next time. Because in licensing, the best opportunities are always just around the corner.