As this multi-billion dollar industry continues to proliferate across the globe, it has also begun to take hold in the fast-growing Asia. The latest trends and phenomenal growth in the Asian licensing industry render lucrative market prospects for licensors and licensees worldwide.

The basic concept of licensing is centred on acquisition of the consent or the right to produce, market and sell something patented or trademarked. It ranges from the right to manufacture a special product or use a service, to apply a unique image or trademark. Negotiations usually take place between the licensor (the entity holding the rights) and the licensee (the entity seeking the rights), and once an agreement is reached, the licensee usually pays the licensor a fee for the authorised right to produce the "licensed" goods or to use the "licensed" images or trademarks.

The growth of the licensing industry was relatively slow when the concept first emerged in the late 1970's. To date back as in 1979, licensing was confined only to a handful of Hollywood movie studios and a few professional sportspeople in America. But in just a matter of less than a decade, the industry spinned at a rapid pace, and LIMA was formed in the United States in 1985.

The main goal of LIMA is to foster growth of the licensing industry by setting up a networking forum, providing education and information, establishing standards of ethical conducts and professional practices as well as recognising marketing excellence and achievement in the industry. Nowadays, over 1,000 companies and individuals engaged in the marketing of licensed properties worldwide have become LIMA members.

To better represent the industry and facilitate the sector's expansion, as well as to provide support for its headquarters in New York, LIMA has also set up a number of representative offices around the world. These offices are located in London of the United Kingdom, Munich of Germany, Tokyo of Japan, and the newest office is in Shanghai of Mainland China.

This global network of representative offices has been effectively pushing for further expansion of LIMA and bringing the licensing industry to other parts of the globe. Thanks to the forces of globalisation, licensing is no longer dominated by and restricted to the North American and the European markets. It has made many European and American big-name products available in the rest of the world.

According to the findings of many LIMA surveys, North American business accounted for over 90% of global licensing business just over a decade ago. But this focus has been shifting to Asia in recent years. Figures released in 2003 showed that the North Americans only retained 65% of total licensing business in the world, while the market share obtained by Asian counterparts was recorded at 10.5%. With the 2005 figures for the industry worth of US$85 billion worldwide, it is estimated that the licensing industry in Asia alone is currently worth approximately US$10 billion.

The ever-increasing dollar figures and the market share commanded by the Asian licensing business are pointing to its formidable growth in the coming years. This strong position is demonstrated by LIMA's commitment to having two of its five offices in the largest licensing markets in the Asian region – Japan and China.

As the top licensing market in the region, Japan is the host nation of the first LIMA office in Asia. Licensed images, like those popular ones from the Hollywood blockbusters, are widely available in all parts of Japan. But the country also owns a huge pool of homegrown talents, contributing to a thriving domestic licensing scene. Examples of world-renowned Japanese licenses include the branded Sanrio products like Hello Kitty, Minna no Tabo and Cinnamon Roll, etc., and some highly-regarded animations series and movies, like the Dragon Ball cartoons and the My Neighbour Totoro film.

To aptly reflect Japan's standing as the number one licensing market in Asia, the Japanese branch of LIMA also organises one of Asia's largest licensing shows every year. Dubbed Licensing Asia, the latest edition was just held at the Tokyo International Exhibition Centre on 18 – 20 October, 2006. This fair is widely-recognised as a significant platform for global marketers and suppliers to break into the Japanese licensing market.

The emergent second-largest Asian market, China, has shown tremendous economic growth in recent years, particularly since its accession to the World Trade Organisation (WTO). Its licensing business is now the fastest growing in the world. Statistics show that in the past five years, the Chinese licensing market grew 83% from US$600 million in 2001 to US$1.1 billion in 2005.

Recognising this rapid development and aiming to cater the expansion in this fast-growing economy, LIMA has recently set up an office in Shanghai, an economic powerhouse city in China. Furthermore, LIMA will launch a Licensing Show in Shanghai in mid-November, 2006 to further facilitate the growth of licensing business in China.

For the international license holders, China offers them hugely profitable business potential as the nation has one of the largest populations on the planet with fast-uprising living standard. Those licensors who grasp a good understanding of the Chinese cultural values can quickly establish a firm foothold in the China market.

One of the biggest licensing opportunities yet to emerge from China is the Olympic Games, to be held at the nation's capital, Beijing, in 2008. While the high-profile sporting event is just two years away, licensing for this world event's official mascots has already been running hot. Destined to be the most marketable icons of the Olympics, the 2008 mascots – the cartoon fish, panda, the Olympic Flame, Tibetan antelope and swallow named Beibei, Jingjing, Huanhuan, Yingying and Nini respectively – are all expected to generate colossal revenue from all kinds of licensed gifts and souvenirs.

For decades, buyers have been using Hong Kong as the stepping stone to tap the huge China market, and also a springboard for the Southeast Asian market. The licensing industry of the city also thrives on the same fast-growing plane. Thanks to its advantageous geographical location and well-established trade network, Hong Kong has become a licensing hub in the Asia Pacific region.

While the number of local licensing brands and properties is quite small, some of the biggest international licensors, like Warner Brothers, Mattel and the American National Basketball Association have opened offices in Hong Kong for long. Some others have assigned the exclusive rights to the Hong Kong-based licensing agents to develop their business in Asia.

Apart from the numerous prominent licensors based in the city, the Hong Kong Trade Development Council also actively promotes the licensing business by organising the annual Hong Kong Licensing Show. This fair has been providing a unique platform for matching up licensors and licensees since its inauguration in 2002. The 2006 show held in July proved to be another success by lining up 111 exhibitors (a 91% increase over the previous year) and over 280 saleable trademarks and properties on show.

The licensing industry in Asia has seen impressive development and the groundwork for further growth is already laid out in the largest markets, namely Japan, China and Hong Kong. The vast potential of these leading markets are yet to be fully tapped and realised. International licensors and licensees must keep abreast of new market opportunities brought about by the fast-prospering Asian licensing industry.