icon on Across the United States, municipalities and government agencies are exploring innovative ways to generate revenue without raising taxes. One increasingly popular strategy is the creation of intellectual property merchandise licensing programs. These initiatives allow local governments to monetize their official marks, logos, and symbols by licensing them for use on apparel, souvenirs, and other branded merchandise. What was once the exclusive domain of universities and professional sports franchises is now becoming a revenue stream for government agencies and major cities.
MODERN EXAMPLES
New York City pioneered this concept decades ago, building a robust licensing program that transformed its iconic city seal and logos, such as “NYPD”, "I ♥ New York”, and “FDNY,” into a global brand. A few examples of New York City’s licensed merchandising are below:
At its peak, New York City’s program generated more than $24 million annually in royalties from licensed merchandise. This success demonstrated the enormous potential of municipal branding when paired with a structured licensing framework.
The City of Pittsburgh followed suit in 2022, launching its own program to capitalize on civic pride while supporting local artists and small businesses. Despite having a population of just over 308,000 residents—a fraction of New York City’s population—Pittsburgh has embraced intellectual property strategies to monetize its brand. Pittsburgh's merchandising program features various city-branded clothing, apparel, and accessory goods, such as:
Recently, city officials in Boston have been considering a similar initiative tied to its upcoming 250th anniversary, with a proposed $100,000 pilot project designed to test production models, intellectual property enforcement strategies, and partnerships with local designers and businesses.
These programs operate on a straightforward premise: local and federal government agencies should secure trademark rights and copyright protection for their official marks and designs, enforce their IP rights against infringers, negotiate licensing agreements with approved vendors, and collect royalties based on licensed merchandise sales. Beyond revenue generation, these initiatives strengthen civic identity and create economic ripple effects by collaborating with local creators and business owners in the design and production process. However, these programs require careful legal oversight to ensure compliance, to protect public assets, and to enforce intellectual property rights against unauthorized use.
WHAT GOVERNMENT ATTORNEYS CAN DO TO MAKE IT HAPPEN
Municipal and government attorneys play a pivotal role in transforming IP licensing merchandising ideas into reality. The process begins with conducting comprehensive trademark and copyright clearance searches to confirm that city seals, logos, and other designs are protectable under intellectual property laws. Once cleared, government attorneys should consider filing trademark applications at the federal and state levels to secure exclusive rights.
Next, legal teams should develop a formal IP licensing policy that outlines how the government agency will authorize vendors, calculate royalty rates, and manage quality control. This IP licensing policy serves as the foundation for all licensing agreements and ensures consistency and transparency. Government attorneys should also create an IP enforcement plan to monitor unauthorized use and establish procedures for addressing infringement, including monitoring services, issuing cease-and-desist letters, issuing takedown notices, and pursuing litigation when necessary.
Finally, collaboration with procurement and economic development departments is essential to integrate licensing into broader government initiatives. By taking these steps, government attorneys can help their government agencies unlock new revenue streams while safeguarding public assets and promoting civic pride.
WHY IT MATTERS
As municipalities and government agencies face growing budget pressures, intellectual property licensing offers a sustainable, community-driven solution that aligns with both economic and cultural goals. Cities that leverage their IP strategically can generate significant revenue, support local businesses, and strengthen their brand identity.
If your government agency is exploring innovative ways to fund public services and celebrate its history, now is the time to consider an IP merchandise licensing program. For more information on how these programs work and how to implement them effectively, you can reach out to Caleb L. Green at clg@h2law.com or (702) 667-4832.