Specifically, the deal aims to spread brand awareness among audiences that would not normally come into contact with the Royal Nay, particularly young people.
IMG Media will be tasked with enhancing the image and reputation of the Royal Navy, support recruitment activity and events with merchandise tailored to meet specific requirements, develop a trading reputation and generate revenue.
Royal Navy property is headed up by a distinctive logo, featuring the white ensign. It also includes a wide range of badges, insignia and imagery.
Product categories could include outdoor clothing and leisurewear, sports equipment, games, videogames, educational software and memorabilia, although licensees for the products have yet to be appointed.
Outlets will include high-street retailers, online retailers, in-house publications and the four Naval museum shops.
The First Sea Lord, Admiral Sir Jonathon Band KCB ADC, said: "In looking at new ways of communicating with our audiences, licensing and merchandising our brand is an exciting and obvious area to try to exploit."
Simon Gresswell, vice-president of licensing at IMG, said: "IMG believes that the Royal Navy and its broad range of sub brands, such as the Royal Marines, have a unique combination of history and heritage, ongoing currency and an exciting, certain future beyond the like of most brands."
An event to mark the start of the programme was held on board HMS Albion on July 13, during the ship's visit to Greenwich.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .