In a move that may look like internal restructuring, Melco Resorts & Entertainment has made a decisive strategic play — acquiring full ownership of its brand and intellectual property.

This isn’t just about trademarks.
It’s about control, cost efficiency, and global expansion leverage.

The Deal: Bringing IP In-House

Melco Resorts has agreed to purchase MI IP Licensing Services 1 Limited — the entity holding its trademarks — from parent company Melco International Development for US$375 million.

Key details:

• Buyer: Melco Resorts-owned MCO (IP) Holdings Limited
• Completion date: 8 May 2026
• Result: Trademarks become fully owned within Melco Resorts

These trademarks underpin Melco’s core brands across:

• Integrated resorts
• Gaming operations
• Entertainment assets

Why This Matters: The Strategic Angle

Melco Chairman and CEO Lawrence Ho put it simply:

“These trademarks are integral to Melco’s business… This purchase gives us full control of the IP and allows us flexibility to expand our brand without any incremental cost.”

That last line is the key.

From Licensing Cost to Strategic Asset

Previously, Melco Resorts paid licensing fees to use its own brand assets.

Now:

• No ongoing licensing costs
• Full ownership of brand equity
• Greater flexibility in deal structuring

To put this into perspective:

• The IP entity generated US$6.0M in FY24
• Jumped to US$32.7M in FY25

That’s a rapidly growing cost line now eliminated — and converted into internal value.

Simplifying Structure = Accelerating Growth

By bringing IP ownership in-house, Melco achieves:

1. Streamlined Corporate Structure

• Eliminates intercompany licensing complexity
• Aligns ownership with operating entities

2. Stronger Global IP Protection

• Easier enforcement across jurisdictions
• Centralized control over brand usage

3. Faster Expansion Capability

• No need to negotiate IP rights in new markets
• Enables quicker entry into emerging jurisdictions

This is critical as Melco expands beyond Macau and the Philippines.

Industry Context: Licensing Fees Are Big Business

Interestingly, this move comes just as MGM Resorts International revealed it earned US$23 million in licensing fees from MGM China in 1Q26 — after increasing its licensing rate from 1.75% to 3.5% of revenue.

This highlights two different strategic approaches:

MGM Model:

• Monetize IP via licensing
• Extract recurring fees from subsidiaries

Melco Model:

• Internalize IP
• Reduce costs and increase operational flexibility

The Bigger Picture: Brand as a Growth Engine

In modern integrated resorts, brands like:

• City of Dreams
• Studio City

are not just marketing tools — they are:

Revenue drivers, partnership enablers, and expansion platforms

Owning them outright means Melco can:

• Structure joint ventures more efficiently
• Enter new markets without friction
• Potentially license out brands in the future

Final Take: A Smart, Forward-Looking Move

Melco’s US$375M investment is not just a purchase —
 it’s a repositioning of its entire operating model.

In a market where:

• Margins are tightening
• Expansion is competitive
• Brand matters more than ever

Owning your IP is no longer optional — it’s strategic.