Smartphone- and tablet-related licensing activity has mostly been focused on accessories, such as protective cases and ear buds, and content in the form of streaming video or apps. When it comes to the devices themselves, consumers have typically made their purchase decisions based on the strength of the device maker’s and/or the service provider’s brand. Licensing has not been necessary.
But, as the device market matures and becomes more crowded, licensing is starting to play a role. The first forays were centered on electronics and telecommunications brands extending into the device category. Examples include Nokia being licensed to Foxconn and Alcatel to TCL, with both product lines introduced first in China. RCA also has licensed its brand to Sonoma Communications for a line of smartphones.
These types of brand-extension deals often have as much to do with business models—namely, the economics of licensing versus in-house production—as they do with differentiation. More recently, however, licensing agreements for phones and tablets are being forged to bring distinctive features, as well as name recognition, to the devices.
The Bullitt Group has been at the forefront of this emerging trend. It signed a deal with Caterpillar for a range of rugged devices suitable for use on construction sites and at other outdoor or heavy-labor workplaces. It also secured the rights to the Kodak brand for phones that provide simple-to-use photo printing and sharing services.
Licensing of smartphones and tablets is not likely to involve properties that primarily offer novelty or personalization, as is typical on the accessories side of things. But there would seem to be potential for licenses that can bring logical, unique, and/or sought-after value-added characteristics that can set the devices apart from their competitors.
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