Understanding Licensing and Letters of Authorization (LOA) on Amazon

It’s become increasingly clear that Amazon staff often misunderstand the concept of Letters of Authorization (LOA) and who should issue them. Let’s break it down clearly for everyone.

The Basics of Licensing

When a popular brand — let’s use Disney as an example — owns an intellectual property (IP), they can grant other companies the license to create products using their characters and designs. For instance, Disney may license Funko to create collectible figures featuring beloved characters like Woody from Toy Story.

In this scenario:

• Disney owns the IP.
• Funko has the license to create and distribute products featuring Disney’s IP.

Who Controls Distribution?

Here’s where the confusion happens:

• In the agreement between Disney and Funko, Funko has the right to control who sells their products, not Disney.
• This means if a seller wants to list Funko’s Disney-branded products on Amazon, the Letter of Authorization should come from Funko — the brand manufacturing and distributing the product — not Disney.

Disney would only issue an LOA if they were directly manufacturing and distributing the products themselves, which they are not in this case.

Why This Matters

When Amazon instructs sellers to get an LOA from Disney instead of Funko, it leads to unnecessary delays and frustration. Disney has no obligation or authority to approve resellers of Funko’s licensed products. It’s Funko’s right to determine who can distribute their products, per their licensing agreement.

The Ask: Educate Amazon Staff Properly

To avoid further confusion, Amazon must ensure their staff understands these key points:

1. The brand that manufactures and distributes the product is responsible for issuing the LOA — not the original IP owner.
2. If a company like Funko holds the license, they decide who can sell their products, not Disney.
3. Sellers should only be asked for LOAs from the brand producing and distributing the item, not the IP owner unless they are one and the same.

By understanding this licensing structure, Amazon can prevent unnecessary roadblocks and create a smoother process for legitimate sellers.

Let’s get this right — sellers and brands deserve clarity and accuracy when it comes to LOAs!