Basics of Licensing: How to Extend Brand and Entertainment Properties for Profit

Basics of Licensing: How to Extend Brand and Entertainment Properties for Profit

by Gregory J. Battersby, Danny Simon

Paperback

$24.95

Product Details

ISBN-13: 9780983096306
Publisher: Kent Press
Publication date: 03/01/2011
Pages: 268
Product dimensions: 5.40(w) x 8.30(h) x 0.80(d)

About the Author

Gregory J. Battersby is a senior partner in the law firm of Grimes & Battersby, LLP, with 40 years of experience in intellectual and licensing property law. He has written more than 25 books on various licensing and intellectual property topics, including The Law of Merchandise & Character Licensing, and is a founder and executive editor for the Licensing Journal and the IP Litigator. He lives in Westport, Connecticut. Danny Simon has more than 30 years of experience in the licensing industry and built the licensing divisions for Lorimar Pictures, Carolco Pictures, and 20th Century Fox. He has developed successful licensing programs for franchises based on Baywatch, Dallas, MASH, Mortal Kombat, Rambo, and Terminator 2: Judgment Day and teaches a course on entertainment licensing at UCLA. He lives in Los Angeles.

Table of Contents

Chapter 1 Defining the World of Licensing 1

1.1 Definitions and Terminology 1

1.1.1 Forms of Licensing 1

1.1.2 Contractual Terms 2

1.2 Types of Properties 4

1.2.1 Art 5

1.2.2 Celebrity 6

1.2.3 Collegiate 7

1.2.4 Corporate 8

1.2.5 Entertainment 10

1.2.6 Fashion 11

1.2.7 Music 13

1.2.8 Non-Profits 13

1.2.9 Publishing 14

1.2.10 Sports 15

1.3 Types of Licensed Products 16

1.4 Reasons for Its Popularity 18

Chapter 2 History of Licensing 19

2.1 The Properties 19

2.1.1 The Beginning 19

2.1.2 The l940's 25

2.1.3 The 1950's 27

2.1.4 The I960's 31

2.1.5 The 1970's 33

2.1.6 The l980's 37

2.1.7 The 1990's 42

2.1.8 The 21st Century 45

2.2 LIMA License of the Year Award Winners 50

2.3 The Major Licensors 51

Chapter 3 The Licensing Industry Today 53

3.1 Size and Scope of the Industry 53

3.2 International Scope of the Industry 57

Chapter 4 Identifying & Clearing Licensed Properties 59

4.1 Evaluating Properties for Licensing 59

4.2 How Well Known is the Property? 60

4.3 Ownership Considerations 63

4.4 Clearing Properties 67

Chapter 5 Protecting Licensing Properties 71

5.1 Introduction 71

5.2 Developing a Protection Plan 71

5.3 Trademark Protection 73

5.4 Copyright Protection 77

Chapter 6 The Licensor-Licensee Relationship 81

6.1 Introduction 81

6.2 The License Agreement 81

6.3 Establishing Payment Terms 82

6.3.1 The Guarantee 82

6.3.2 The Advance 83

6.3.3 The Royalty Rote 84

6.4 Product Development 84

6.4.1 Style Guide 85

6.4.2 Legal Notices 85

6.4.3 Forms 85

6.4.4 Samples 85

6.5 Approval Process 86

6.6 Royalty Payments and Statements 86

6.7 Product Liability Insurance 87

6.8 Terms and Extensions 87

Chapter 7 Royalty Rates 89

7.1 Introduction 89

7.2 Setting Royalty Rates 89

7.3 Types of Royalty Rates 93

7.3.1 Royalty Rates on Domestic Sales 94

7.3.2 Royally Rates on F.O.B. Sales 94

7.3.3 Royalty Rates on Direct Sales 95

7.3.4 Royalty Rates for Services 96

7.3.5 Sublicensing Royalties 96

7.3.6 Split Royalty Rates 97

7.4 Average Royalty Rates 97

7.5 Net Sales, Advances and Guarantees 98

7.6 Marketing Contributions 99

Chapters 8 The License Agreement 101

8.1 Introduction 101

8.2 Negotiating the Terms of a License 101

8.3 Term Sheets/Deal Memos 107

8.4 The License Agreement 108

8.4.1 Definitions 108

8.4.2 Grant of Rights 109

8.4.3 Term of the Agreement 110

8.4.4 Compensation Provisions 111

8.4.5 Sub-Licensing 113

8.4.6 Accounting Provisions 114

8.4.7 Quality Control Provisions 117

8.4.8 Representations and Warranties 118

8.4.9 Indemnification and Insurance 119

8.4.10 Termination Provision 120

8.4.11 Boilerplate Provisions 122

Chapter 9 Best Practices in Licensing Administration 127

9.1 Introduction 127

9.2 The Licensing Department 127

9.2.1 The Marketing Group 129

9.2.2 The Sales Group 131

9.2.3 The Contract Administration and Legal Group 136

9.2.4 The Finance Group 139

9.2.5 The Retail Group 139

9.2.6 The Creative Group 141

9.3 International Licensing 143

9.4 Ethics in Licensing 144

9.5 Insuring Social Compliance 147

Chapter 10 Licensing Agents & Consultants 149

10.1 Introduction 149

10.2 The Role & Compensation of a Licensing Agent 150

10.3 Licensing Agent Agreement 154

10.4 Sub-Agents & International Licensing Agents 161

10.5 Manufacturer's Representatives 163

10.6 Making the Relationship Work 165

Chapter 11 Marketing & Promoting Licensed Properties 167

11.1 Introduction 167

11.2 Advertising Programs 167

11.3 Direct Marketing 169

11.4 Effective Public Relations 169

11.5 Innovative Promotions 173

11.6 How to Use Buzz Marketing 175

Chapter 12 The Retailer's Role in Licensing 179

12.1 Introduction 179

12.2 What Are Retailers Looking For? 181

12.3 Think Smaller-Limited Distribution 182

12.4 Retailer Strategies beyond the Top Ten 183

12.5 Direct to Retail Licenses 186

Chapter 13 Accounting, Auditing & Tax Considerations 189

13.1 Effective Royalty Auditing to Insure Compliance 189

13.2 Audit Provisions in the License Agreement 189

13.3 When Should an Audit Be Performed? 193

13.4 Selecting the Royalty Auditor 194

13.5 Preparing for the Royalty Audit 195

13.6 Information Required From the Licensee 196

13.7 Royalty Audit Procedures 198

13.8 The Royalty Audit Report 199

13.9 Accounting Provisions in License Agreements 201

13.9.1 Definition of Terms 202

13.10 Tax Considerations 205

Chapter 14 Infringements & Counterfeits 207

14.1 Introduction 207

14.2 The Counterfeiting Industry - a Growing Market 208

14.3 Identifying Counterfeit Products 211

14.4 Steps to Take Against Infringers 212

14.4.1 Cease and Desist Letters 212

14.4.2 Keeping a Perspective on Litigation 213

14.4.3 Theories of Litigation 214

14.4.4 Litigation Strategies 218

Appendix-1 Licensing Agent Agreement 221

Appendix-2 Sub-Agent Agreement 229

Appendix-3 Licensee Application 237

Appendix-4 License Deal Memo 239

Appendix-5 License Agreement 241

Appendix-6 Manufacturer's Representative Agreement 261

Index 267

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