The IP rights owner may, apart from using them to create brand recognition or protect competitive advantage, use these rights to create additional revenue streams by giving third parties the permission to use these rights against a fee. The licensing, franchising and merchandising are at the core of a substantial and growing practice in the tourism sector.

For instance, the trademark “St. Moritz – Top of the world” has been widely licensed to businesses, ensuring a steady and additional revenue stream to the St. Moritz tourism board. One of the licensees is “Fashion Box”, a clothing company, which carries St. Moritz as one of its brand labels for its clothing.

Hotels and restaurants are often franchised businesses. A leading name in the hotel industry, Hilton, is a franchised business. In other words, the Hilton in a particular location is owned by an independent entity who is entitled to use the trademark Hilton and all other relevant IP assets as well as the whole business model of running that hotel.

Most souvenirs that are available for purchase by tourists, whether it is models of the Eiffel tower, t-shirts with a particular slogan that is a registered trademark or mugs bearing Maori designs, have been produced under the merchandising scheme.