7.6
Product safety and regional compliance
A license lets you use the characters, but it doesn't make your product legal to sell. Physical goods must meet the safety, labeling, and material rules of each market where they are sold, and licensors typically expect you to handle this.
Compliance requirements depend on the product type and the country. Toys and children's products are usually the most tightly regulated, with rules on small parts, chemicals, and age labeling. Apparel may need fiber content and care labels. Cosmetics, food, and beverages in collaborations often face their own approval systems. Electronics may need safety or radio certifications.
Licensors usually include compliance obligations and product liability insurance requirements in the contract, and they may ask to see test reports during approvals (see 5.5). Common categories to check include:
- Children's product and toy safety standards in each market.
- Chemical and material restrictions.
- Labeling, country-of-origin, and language requirements.
- Food, cosmetics, or other category-specific registrations.
Work with an experienced manufacturer and a testing lab, and budget time and money for testing before launch. Rules differ across the US, EU, UK, Japan, and other markets, so confirm requirements with a compliance specialist or attorney for each territory.