1. What are the most important factors determining future market demand for LEGO children’s clothes from Kabooki?

2. Which other products could be considered for licensing out the LEGO brand?

3. List some criteria for choosing suitable licensees and future products for the LEGO brand (licensing out).

4. What values/benefits can LEGO transfer to the licensee (e.g. Kabooki) apart from the use of the LEGO brand?

5. What values/benefits can the licensee transfer to the licensor?

In 1993, the Danish textile firm, Kabooki, was given the rights to use the LEGO brand (licensing-in) in connection with production and sales of children’s clothes. LEGO children’s clothes have the following features: functional, clear and strong colours, high quality and a high price. Mostly, the clothes are sold through a shop-in-shop concept.