Module 2 · Chapter 4

Quality Control

A brand owner that lets another company use its name wants the goods to stay good. The licence sets the standards, lets the owner check them, and says what happens when a batch fails.

≈ 8 min read 8-question test

In this chapter

  • Why a brand owner checks the quality of a licensee's goods
  • What the quality standards require, and how inspections work
  • What happens when a batch fails, step by step

4.1Quality control in one paragraph

For two years the Sheffield company sells its pumps under the Kelderwick name. Customers who see that name expect a Kelderwick pump, so Kelderwick IP keeps a say in how those pumps are made. This is quality control: the licensee makes to agreed standards, and the licensor may check. Clause 4 of the Licence sets out how it works, and Schedule 5 sets the standards.

Key point

Quality control protects the brand. It does not hand the factory back to Kelderwick. Kelderwick IP gets standards, inspections and a notice for a failed batch. Every other decision about the factory stays with the Sheffield company.

Also in this chapter

  1. Why a brand owner checks quality
  2. The standards, and how Kelderwick IP checks them
  3. When a batch fails
  4. What termination would have meant
  5. Your job

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