Melco Takes Full Control of Trademark Arm in US$375 Million Internal Deal
Melco Resorts & Entertainment has secured ownership of the group’s trademarks and intellectual property after agreeing to buy the relevant subsidiary from its parent company. The transaction gives the Macau concessionaire direct control over the entity that holds the trademarks used across its business.
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Internal Transfer
In a filing, Hong Kong-listed Melco International Development Ltd said it had agreed to sell its wholly-owned subsidiary, MI IP Licensing Services 1 Limited, to Melco Resorts-owned MCO (IP) Holdings Limited for US$375 million. Upon completion, the target company will become a wholly-owned subsidiary of Melco Resorts. The transaction is scheduled to close on 8 May 2026.
The move shifts ownership of the trademark-holding entity from the parent company into the Melco Resorts group. It also formalizes the change in structure around assets that support the group’s leisure, gaming, and entertainment operations.
Brand Control
Speaking during Melco Resorts’ 1Q26 earnings call late Thursday, Chairman and CEO Lawrence Ho said the trademarks held by MI IP Licensing Services 1 Limited are the ones covered by the trademark license agreement. He said the brands are integral to Melco’s business.
Ho said the purchase gives the group full control of the intellectual property and allows it to expand its brand without any incremental cost. The remarks underline the importance of the trademarks to Melco’s broader operating structure.
Melco International said the transfer would streamline and simplify the group’s intellectual property structure by placing the trademarks in a holding vehicle within the Melco Resorts group. It added that the new structure would align ownership with the operating entities that use the trademarks in their integrated resort operations.
Fee Income History
Melco International also disclosed that MI IP Licensing Services 1 Limited earned license fee income of US$6.0 million in FY24, rising to US$32.7 million in FY25. That increase highlights the growing value of the trademark-holding entity before the transfer.
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The company said it would continue to benefit from the value and development of the trademarks through its approximately 56.32% shareholding in Melco Resorts. The arrangement means the parent company remains financially connected to the asset even after the transfer.
Sector Timing
The move comes a day after MGM Resorts said it had earned an additional US$23 million in licensing fees from its Macau-based subsidiary, MGM China, in 1Q26. That followed a change in the rate it charges for use of the MGM name, from 1.75% to 3.5% of revenue.
Melco’s internal transaction reflects a similar focus on how branding assets are managed inside a casino group structure. By bringing the trademark arm directly under the operating company, the group is consolidating control over an asset that sits at the center of its business model.
Group Structure Shift
The deal marks a notable change in how Melco manages its intellectual property across the group. With the trademarks moving into a holding vehicle inside Melco Resorts, the company is positioning the asset closer to the businesses that use it daily.
The structure is expected to make management, protection, and enforcement of the trademarks more efficient across multiple jurisdictions. It also gives Melco Resorts greater operational control over a brand portfolio that remains closely tied to its integrated resort activities.
Source: Inside Asian Gaming
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