When Italian fashion house Moschino unveiled their A/W 14 Collection it turned heads in an unlikely sector… the legal sector. The collection contained a range of clothing and accessories inspired by global fast-food giant McDonalds and contained a heart-shaped parody of McDonalds' golden arches on a red background.

McDonalds confirmed that the unlikely duo had signed a licence agreement which allowed Moschino to use certain IP rights owned by McDonalds in exchange for a donation to Ronald McDonald House Charities.

The licencing agreement appears to have benefitted both parties, as Moschino achieved impressive sales following the release of its McDonalds-inspired products, and McDonalds received wide press coverage and brand elevation without incurring any marketing costs. For example McDonald products featured in Moschino's social media advertising campaign which included tweets such as 'Do you ever look at yourself in the mirror and think, this outfit is missing a #Bigmac'

The Moschino and McDonalds collaboration is not the only one to feature on this year's catwalk. In February 2014, British designer Anya Hindmarch released a series of purses emblazoned with Daz, Ariel and Kellogg's branding.

These types of collaborations can be beneficial for both parties with the brand holder gaining access to a new demographic of potential customers, whilst the licensee may receive exclusive rights in return for use of the brand ahead of competitors. It is unlikely that the brand holder will want to grant the licence for a long period of time as it will want to prevent its hard-earned branding becoming synonymous with another company through long-term use.

Whilst the terms of the licence agreement between McDonalds and Moschino are not publicly available, the collaboration highlights some key commercial licensing issues for retailers and brand holders alike.