Winter 2015
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TOY FAIR 2015 AT
NORTH AMERICAN INTERNATIONAL
Departments 8 Jackie’s Point 10 Stat Shot 11 Kidz Global Top toy brands of 2014 for girls and boys. 12 Industry Update 14 LIMA Update Martin Brochstein sheds insight on how fast turnover at retail can have a big impact on the success of a property. 17 Blogger Bash Laurie Schacht announces second annual conference connecting digital influencers and popular brands. 26 Property Profile: Care Bears AG Properties discusses expanding the evergreen brand into the digital arena. 36 A Look Inside: Thunderbirds Are Go Thunderbirds returns to TV and retail shelves with a major consumer products program. 48 Hot Shots: Sony Pictures Consumer Products Greg Economos, SVP, Global Consumer Products, discusses what’s next for the entertainment giant. Volume 32, NumbeR 1
Features 16
Talking Social Media
56 Licensing 101 Jim Sachs discusses the basics of brand licensing. 58 Licensing & Media: Archie Comics Everybody’s favorite boy next door reaches a major milestone.
Stacy DeBroff reveals three reasons why today’s online recommendation culture drives consumer conversations.
60 Marketing Memo The right logo can enhance your brand and help communicate with consumers.
18
62 License Management Derrick Lennox discusses why and how to get a license or option back.
What’s Trending in Licensing
Steve Reece analyzes the current state of the licensing industry, as well as its bright future.
64 International: Asian Licensing Conference 2015 Trend hunter Reyne Rice provides a look at this year’s event.
20
Packaging Licensed Products
Ted Mininni discusses how to balance artistic design with a brand’s assets when designing packaging for licensed products.
66 Licensing Administration Amos Biegun looks at the importance of leveraging technology for data that can be of high value for a brand.
22
Toy Fair 2015
68 Of Counsel James Kipling discusses the coordinating essentials in sports licensing.
Our annual look at the U.S. toy industry’s biggest event, with coverage of licensed products across all toy categories. Check out the latest kids’ properties, the evergreen classics, and what’s on deck to keep kids’ interests up across the board.
70 Brand Licensing Christopher Boone talks about the importance of customization and branding in the age of me-commerce.
THE LICENSING BOOK, Winter 2015 — “THE LICENSING BOOK” (ISSN-0741-0107) is published quarterly by Adventure Publishing Group, Inc.®, 307 Seventh Ave., Room 1601, New York, New York, 10001. Periodicals postage paid at New York, NY 10001 and additional mailing offices. © 2015 Adventure Publishing Group, Inc ®. All rights reserved. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopying, recording any information storage and retrieval system, without permission in writing from the publisher. Printed in U.S.A. Subscription rates: $48 per year. THE LICENSING BOOK, THE LICENSING BOOK INTERNATIONAL, WORLDWIDE LICENSING and the “WLE” design, are trademarks and service marks of Adventure Publishing Group, Inc.® registered in the United States Patent & Trademark Office Postmaster: Send address changes to THE LICENSING BOOK, c/o Adventure Publishing Group, 307 Seventh Ave., Room 1601, New York, New York, 10001.
LICENSINGBOOK
®
JACKIE’S POINT
THE
www.licensingbook.com
ADVENTURE PUBLISHING GROUP INC.® Vol. 32, No. 1, Winter 2015 Licensing is a key factor in the overall success of the toy industry. It drives sales and sends consumers to the toy aisles—even outside of the fourth quarter—for that must-have toy. Licensing currently represents 31 percent of total toy sales, according to The NPD Group. The Teenage Mutant Ninja Turtles Figure Assortment, from Playmates, and Disney Frozen Snow Glow Elsa, from Jakks Pacific, were the overall top-selling toys of 2014. As the economy (slowly) improves, I expect sales of licensed toys and toy brands to improve as well. The toy industry was up almost 4 percent last year, largely driven by extra money in consumers’ pockets thanks to lower gas prices, lower unemployment rates, and an overall improved outlook for the economy. I believe this translates not only to increased toy sales in general, but also to increased branded toy sales, specifically. There’s no doubt that when the chips are down, parents will still buy toys for their kids. No child shall be denied a Snow Glow Elsa (unless they are completely sold out at retail). However, in that situation, many of the toys purchased will reflect the products that had the lowest sale prices, and kids may find more generic dolls, plush, and trucks under the tree. When things are running on a more
8 • The Licensing Book
positive track, parents are more likely to spend on the hot properties their kids are looking for (which will inevitably include Star Wars late this year). They will also look for the brands they know and trust, because the few extra dollars no longer faze them. If they can afford well-known brands, such as Crayola, Little Tikes, Playskool, and Fisher-Price, they will go with those brands because of their perceived value and quality. According to NPD, the average retail price for toys sold in the U.S. was $10.35, up 2.3 percent from 2013. This tells us that parents will spend a little more this year, and with technology prices coming down and youth electronics on the rise, I anticipate another positive year for licensed tech toys and kids’ electronics. I expect action figures to experience growth again this year, and even more so next year, thanks to the December 18 release of Star Wars: Ep iso d e VII—The Fo rce Aw ak ens and continued love for Teenage Mutant Ninja Turtles. And while building sets may flatten a bit in the aftermath of last year’s The Lego Mo vie sales, I expect that category, too, will benefit from Ep iso d e VII. We shall see if the buzz will begin early on, or if sales will really explode in 2016 due to the very late movie release, a la Disney Frozen sales in •••• 2013 to 2014.
President Laurie Schacht laurieschacht@aol.com
Co-Publisher Jonathan Samet jsamet@adventurepub.com
Co-Publisher/Editor-in-Chief Jackie Breyer jbreyer@adventurepub.com
Senior Editors Marissa DiBartolo mdibartolo@adventurepub.com
Ali Mierzejewski amierzejewski@adventurepub.com Associate Editors Christine Duhaime cduhaime@adventurepub.com
Phil Guie pguie@adventurepub.com Editorial Assistant Deanna Atkins datkins@adventurepub.com
Editorial Intern Magdalene Michalik Production Director Bill Reese breese@adventurepub.com
Bookkeeper Lori Rubin lrubin@adventurepub.com ADVENTURE PUBLISHING GROUP, INC.® 307 SEVENTH AVE., SUITE 1601 NEW YORK, NY 10001 TELEPHONE: (212) 575-4510; FAX: (212) 575-4521
S TAT S HOT Dollar Sales, U.S. TOY INDUSTRY Supercategories* Supercategories
2013
2014
Change
Action Figures & Role Play
$1.15 billion
$1.26 billion
10 percent
Building Sets
$1.64 billion
$1.85 billion
13 percent
$1.42 billion
10 percent
$0.64 billion
10 percent
$0.94 billion
6 percent
Arts & Crafts
$0.91 billion
Dolls
$0.94 billion
$2.22 billion
Games & Puzzles
$2.32 billion
$1.29 billion
Infant & Preschool Toys
$2.95 billion
Youth Electronics
$3.51 billion
Plush
$1.25 billion
All Other Toys
$17.47 billion
*80 percent estimated toys universe coverage
3 percent
$1.25 billion
$1.08 billion
Grand Total
-4 percent
$3.61 billion
$0.89 billion
Vehicles
4 percent
$2.82 billion
$0.59 billion
Outdoor & Sports Toys
3 percent
0 percent
$1.08 billion
0 percent
$18.11 billion
4 percent
Source: The NPD Group/POS Tracking Service
Top 10 Toy Properties
Frozen took the top spot with sales topping $500 million. Disney Frozen Barbie TMNT Disney Princess Nerf* Star Wars Hot Wheels Lego City
*Does not include Nerf Rebelle sales
Little Tikes
Source: The NPD Group/POS Tracking Service
600 10 • The Licensing Book
400
Monster High 200
Dollar Sales in Millions
0 Winter 2015
KIDZ GLOBAL PRESENTS TOP TOY BRANDS FOR GIRLS AND BOYS
K
idz Global, in exclusive partnership with the International Licensing Industry Merchandisers’ Association (LIMA), has announced the results of a major new research project undertaken through its BrandTrends service. This targeted research reveals the top favorite brands and licenses of children and young people worldwide across a variety of product categories, including toys, fashion, video games, films, books, and sports teams. In the toys sector, Disney, Lego, Hot Wheels, and Barbie were consistently found in the top 10 favorites of children worldwide. In the U.S., Lego is the No.1 brand for boys and Barbie is the No.1 brand for girls. Research revealed that toys follow gender-specific demarcation except for Lego and Fisher-Price for the youngest, which appear in the top 10 for both boys and girls.
PERCENT OF SPONTANEOUS MENTIONS—BOYS Lego
24.8%
Nerf
Hot Wheels Fisher-Price Mattel
Disney Marvel
Disney•Pixar Cars Hasbro
Teenage Mutant Ninja Turtles
PERCENT OF SPONTANEOUS MENTIONS—GIRLS Barbie
13.5%
6.0%
Monster High
7.4%
4.1%
Lego
10.6% 4.2% 2.6%
Disney Mattel
My Little Pony
1.9%
Hello Kitty
1.8%
7.1% 6.4%
Fisher-Price
2.5% 2.1%
9.3%
4.9% 3.7%
Hasbro
2.9% 2.9%
American Girl
2.2%
Source: The BrandTrends Research Project—study commissioned by LIMA
In addition, favorite toy brands and licenses originated as toys rather than from other entertainment categories. More interestingly, none of the licenses in either the boys’ or girls’ toy lists are less than 3 years old, with •••• the exception of Disney Frozen.
METHODOLOGY
This worldwide survey was conducted with systematic and consistent tracking procedures, using unaided awareness research techniques to reveal kids’ top three favorite brands and licenses across a large variety of categories, including entertainment, lifestyle, sports, and food and beverage. The BrandTrends research methodology specifically requires “unaided mentions,” ensuring that the final data is both reliable and highly accurate. The children (or their parents for the youngest kids) completely and spontaneously named their “top three” brands and licenses. The data was then edited and aggregated to reflect the opinions and favorites of the total population of children and young people.
Winter 2015
The Licensing Book • 11
Licensing News CHARACTER LICENSING
AGP Signs Licensing Deals for Care Bears, Strawberry Shortcake, Madballs The American Greetings Properties’ (AGP) brands Care Bears and Strawberry Shortcake will collaborate with Socks and Accessories Brands Global (SABG) to create product for the back-toschool season. SABG specializes in hosiery, legwear, and accessories for the whole family, such as socks, tights, leg warmers, boot cuffs, cozy socks, slipper socks, boot liners, and more. The branded products will be available in mass and mid-tier retailers, and shoe stores. In addition, Care Bears will collaborate with Iron Fist and Buckle-Down. The Iron Fist junior apparel line will include shirts, sweaters, dresses, bags, and shoes featuring the characters. The collection will be available at specialty retailers and directly from Iron Fist this spring. Buckle-Down will use images and logos to create designs for belts, buckles, wallets, and accessories. The products will be available in the U.S. and Canada this winter.
BEST PRACTICES
Building Q Launches Mentoring Practice Building Q, a company that specializes in building marketing programs for its clients by developing long-term licensing strategies, has launched Building Q Mentoring, which will offer consultants three categories of mentoring. The first, Consulting for Consultants, will teach young professionals how they can provide better service and guidance to their clients. Woody Browne, managing partner of Building Q, says, “My goal is to help them [beginners] avoid some of the pitfalls inherent to our niche so they can grow their practices more easily.” Individual Mentoring will help mentees on a personal level. Browne will offer clients a choice between directive and non-directive mentoring at a low cost, serving as a confidential resource and expert guide. Designed for companies that want to retain talent, limit turnover, and help young talent develop, Corporate Mentoring offers professionals the choice of one-on-one or group-based mentoring. Similar to Individual Mentoring, this service focuses on specific skill development and experiential coaching. To learn more about Building Q Mentoring, call (970) 385-7208 or send an email to Woody@BuildingQ.com.
12 • The Licensing Book
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MUSIC LICENSING
Epic Rights Expands Roster of Legendary Music Artists Epic Rights has expanded its client roster through new representation agreements with top musical artists, including Def Leppard, Billy Idol, Chicago, Doobie Brothers, Cinderella, Whitesnake, Jeff Beck, Jefferson Airplane, T. Rex, Velvet Revolver, and Yes. The company has also finalized multi-artist licensing agreements with select apparel licensees to develop fashion apparel programs for the brands. Licensees for the program include Lauren Moshi, Retro Brands, Mighty Fine, Jerry Leigh, Life Clothing, Trevco, and Impact. The licensees will introduce rock apparel clothing lines, including T-shirts, fashion tops, knits, hoodies, sweatshirts, dresses, leggings, and loungewear. The apparel will debut across a broad range of retail channels throughout the U.S in the spring.
Winter 2015
TV LICENSING
ITV Studios Gears Up for 2015 ITV Studios Global Entertainment announces developments in the boys’ actionadventure series, Thunderbirds Are Go!, and third-party kids’ TV properties, Super 4 and Matt Hatter Chronicles. Master toy partner Vivid Imaginations unveiled the Thunderbirds Are Go! toy line at London’s Toy Fair, which featured the Tracy Island play set, a vehicle play set, detailed action figures, and role-play products. The toy line will debut at UK retail in the third quarter and will be supported by an extensive digitally integrated consumer marketing and retailer program. Additional licensees include Simon & Schuster and DC Thompson for publishing, Kokomo for personal care, Danilo for greeting cards and stationery, Posh Paws for accessories, and MV Sports for outdoor play. For the Matt Hatter Chronicles, master toy partner Simba Smoby UK debuted the brand’s first toy line in the UK, EMEA, and India last fall. ITVS GE is working with its 17 UK licensing partners to prepare retail launches this year, while global licensing programs will roll out in Australia, France, Spain, and Italy. The first line of Super 4 figures and play sets will launch at UK retail in the fourth quarter of this year. Meanwhile, master publishing partners Bonnier Publishing and Redan will launch products in the first quarter of next year.
ENTERTAINMENT LICENSING
Lego Group, WBCP Partner for Scooby-Doo Building Sets The Lego Group announces a new partnership with Warner Bros. Consumer Products (WBCP) to develop a collection of Lego building sets inspired by the Scooby-Doo franchise. Set to hit shelves in August, the line will feature five new building sets, including the Mummy Museum Mystery, the Haunted Lighthouse, and more. In addition, new Lego Scooby-Doo animated content will roll out, including a 22-minute Lego special featuring Scooby-Doo and madefor-video movie releases, from Warner Bros. Animation and Warner Bros. Home Entertainment Group.
BRAND LICENSING
The Five Mile Press Signs On for Dumb Ways to Die Dumb Ways to Die signed Australian publisher The Five Mile Press in a deal that coincided with the launch of the Dumb Ways to Die 2: The Games app last fall. The Five Mile Press, a wholly owned subsidiary of Bonnier Publishing Ltd., will develop a comprehensive line of storybooks, activity books, novelty books, and stationery products for distribution to major retailers beginning this year. The deal was spearheaded by Evolution LLC. Metro Trains Melbourne will launch a dedicated e-commerce store that will feature a new line of Dumb Ways to Die products early this year. Categories include publishing, apparel, accessories, posters and paper goods, plush, novelties, first aid and safety products, and social messaging apps. Additional category partners are now being secured to round out the program.
Winter 2015
The Licensing Book • 13
LIMA Update
The Significance of Speed Fast turnover at retail can have a big impact on the success of a property. by Martin Brochstein, senior vice president of industry relations and information, Licensing Industry Merchandisers’ Association (LIMA) f you want to succeed in licensing, speed is going to be of extreme importance. That’s one of many points that came through loud and clear in anonymous responses to LIMA’s Annual Outlook Survey of licensing executives from around the world. A U.S. entertainment licensor says that a major challenge for the industry going forward is “Speed to market—content delivery is quick, [but] goods take months and often years to manufacture and develop.” How the licensing community—licensors and licensees alike—deals with the challenge of getting goods to consumers when a property is at the peak of its popularity will be a key determinant of success. While the burden for some of that need for speed will fall on manufacturers, part of the responsibility rests on the property owners. One UK toy licensee says that one of his company’s major challenges going forward is “to get the products in time in regard to approval processes.” One U.S.-based apparel company executive is more direct, complaining about approvals. “It seems that during the past
I
”
How the licensing community—licensors and licensees alike— deals with the challenge of getting goods to consumers when a property is at the peak of its popularity will be a key determinant of success.”
14 • The Licensing Book
year, the approval process has been getting more difficult and not happening in a timely fashion. Though this can be chalked up to bad luck with certain licensors, it does appear to be coming across the board and is making it difficult to ship products on time.” Speed comes up in several other contexts, as well. One Japanese licensor notes the “short cycle of products on retailers’ shelves. I think retailers are changing the products/properties too often.” A U.S.-based licensee complains about the fact that his or her company “can’t maximize potential at retail because shelf life is too short, in order to make room for the next event.” Will part of the challenge be met by online merchandisers with quick-turn capabilities? That comes with its own set of issues. One U.S. collegiate licensor talks of “viral sites allowing customers to create their own merchandise without trademark owner permission.” But even as they acknowledge the challenges they face, licensing industry executives are feeling great about prospects for this year and beyond. LIMA’s second Annual Outlook Survey finds that nine out of 10 executives expect their licensing business to increase this year, with the largest chunk (37.1 percent) projecting gains of 7 percent or more. Licensing agents are the most optimistic, with 80 percent predicting gains of 4 percent or more this year. Meanwhile, 69.2 percent of licensees project their licensing business will jump at least 4 percent, while 63.9 percent of licensors expect that same level of increase.
Winter 2015
The strong outlook for this year extends into hiring. Forty-five percent of the companies responding to the survey expect the number of people employed in licensing-related activity to increase this year, while about the same number expect licensingrelated employment levels to remain the same. (Licensing agents out-indexed all other industry segments in this area, with 65 percent of those responding expecting to increase their employment rolls in the coming year.) Why are the feelings so positive? Judging from survey comments (which are given anonymously), improving economic conditions play a large role. It’s a feeling more commonly expressed by those from U.S. companies (where overall growth has taken off), given the lagging economies in many parts of Europe in particular. “[The] economy has solidified and businesses are starting to look for brands again,” writes one U.S.-based corporate brand licensor. One UKbased executive takes a more measured stance, referring to the “growth in confidence of potential licensees around the world (although still patchy).” There’s also a strong residual glow from the strong performance of a few key properties last year. “Disney Frozen and the Minions demonstrate[d] that in a tough economic climate, a strong license can still be a strong seller,” writes a UK-based housewares executive. Minecraft is another strong performer cited by several executives. Survey responses also bring into sharp relief the love ’em-hate ’em attitude that many in the business have toward Disney. Even as they applaud the strong business generated by Frozen—“Frozen lifted the perception of the viability of licensed goods,” writes one licensor—many have strong reservations about the amount of market power that Disney has. Meanwhile, one U.S.-based licensee writes that a key challenge for the industry as a whole during the next year will be “sustaining Frozen or finding a replacement when it levels off.” That’s just one of the challenges that survey respondents identified for their companies and the licensing business at large during the next 24 months.
Winter 2015
Other comments echo concerns made regularly in recent years, such as: • The effects of ongoing retail consolidation; • A shelf-space crunch that’s exacerbated by retailers’ own private label programs; • Buyer conservatism; • A proliferation of properties that makes it difficult for any of them to break through for more than a week at a time. Of course, one company’s “challenge” is another’s opportunity, so each of these issues should be viewed through the prism of how the licensing business will adapt to changing conditions. While much of the attention in recent months has been justifiably directed toward large entertainment properties, the nature of modern media suggests that some key successes will spring up from unanticipated places, and in smaller quantities than a major theatrical release. One U.S. stationery licensee writes of the challenge inherent in “entertainment shifting to an on-demand model; the explosion of new properties and programming on Netflix means more niche properties.” Similarly, another stationery licensee from the UK notes the challenge of dealing with the “dilution of the TV audience as consumers are downloading IP.” ••••
”
Why are the feelings so positive? Judging from survey comments (which are given anonymously), improving economic conditions play a large role.”
Marty Brochstein joined Licensing Industry Merchandisers’ Association (LIMA) in 2008. Brochstein was a business journalist for more than 20 years, covering the consumer products and retail industries. He spent five years as senior editor of Television Digest and was the founding editor of Consumer Multimedia Report. He was also editor of Consumer Electronics Monthly and Electronics Merchandising, and spent time with Discount Store News, Chain Store Age, and Home Furnishings Daily.
The Licensing Book • 15
Talking Social Media
T h re e R e a s o n s
Why Today’s Online Recommendation Culture
I
Drives Consumer Conversations by Stacy DeBroff, founder and CEO of Influence Central
n previous generations, if moms needed advice or recommendations on which stroller to buy or which vacation destination to check out, they went directly to other moms over the back fence, over a cup of coffee, or in the supermarket aisles. Moms share their experiences and their watch-outs—offering their peers additional insights to go along with what they’ve learned in traditional media. We’re in the midst of a dramatic shift today, as recommendations have moved online—to personal blogs, visual platforms, and online e-commerce reviews—and have completely transformed consumer-purchasing habits. To further illuminate this seismic shift in recommendations and the impact it has on consumer behavior, we recently conducted a research study of more than 900 moms to understand the power of online peer influences. These findings demonstrate that today’s online recommendation culture has become the most powerful driver of consumer conversions. Here are three reasons why:
1
Social Media Keeps Consumers In-the-Know
Moms today have immersed themselves in social media connectivity. More than 80 percent of those surveyed read five or more blogs per week, more than 90 percent use Facebook daily, and 65 percent use Twitter every day. Moreover, when we look to the reasons why moms interact so frequently with blogs and online sites, it often centers on the consumer landscape. More than 70 percent of moms read blogs to discover great new products, 71 percent use blogs to research products that they may buy, and 68 percent look to find coupons or promotions on blogs.
2
16 • The Licensing Book
Online Reviews Make Informed Consumers
Overall, 99 percent of mom consumers surveyed
rely on online research prior to making a purchase. So when they become immersed in a significant shopping phase—say, before the birth of a new baby or when renovating a home—they start with online research. Since they can easily find insights about the products that interest them, they enter sales transactions as informed consumers. What this research does—in addition to helping consumers choose one product over another—is build trust. In fact, 94 percent of moms trust products for their families more after they’ve done their own research.
3
Digital Influencers Impact Sales
Much like our offline friends, the opinions of digital influencers carry more weight when it comes to the wallets of mom consumers. As a result, we have seen the rise of digital influencers and passionate brand advocates sharing their stories and experiences online to provide authentic, trusted insight. For example, 76 percent of moms trust social media recommendations for product information before they make a purchase. In fact, our research shows that 92 percent of moms have purchased products that they’ve discovered through a blogger. Today, moms rely on the trusted voices of online peer influencers to shape their purchasing behaviors. Authentic feedback, written by those they can relate to personally, informs moms’ opinions along their consumer journeys. These relationships affect not only consumers, but the brands for which these influencers advocate. •••• Stacy DeBroff, founder and CEO of Influence Central, is a social media strategist, attorney, and best-selling author. A frequent national and international speaker, she consults with brands on consumer and social media trends. You can reach her at stacy@influence-central.com.
Winter 2015
T
Second Annual Blogger Bash Connects Brands with Influential Consumers
by Laurie Schacht, Toy Insider Mom, founder, Blogger Bash
he second annual Blogger Bash two-day conference is set to take place on July 16 and 17 in New York City at Pier Sixty. Revolutionizing the way brands and bloggers connect, the event will welcome more than 450 bloggers, 150 members of traditional media, and more than 150 brands to meet and mingle in an exciting party atmosphere. From kids’ entertainment brands to music, high-end fashion, and the best in baby care, Blogger Bash has something for everyone. Last year, the event made a huge splash on social media, with more than 120 million Twitter impressions. Brands such as Hasbro, Rovio, Anne Geddes, Warner Bros. Interactive, Chicken Soup for the Soul, Johnny Rockets, Sony Legacy, Crayola, WWE, and more brought their latest and greatest products to show off to the most influential consumers in the digital arena. These brands were able to connect with seasoned bloggers with an average of more than 78,000 UMVs per
Winter 2015
month and an average Twitter following of 10,000. Parent bloggers have become some of the most influential voices when it comes to promoting brands and new products across all industries, and Blogger Bash is the perfect way to connect with them. Whether you want to host a party that is all about you, or if you want to be part of a larger themed party, like The Big Toy Book’s Sweet Suite toy event, or host an off-site mini event to really generate buzz, there’s something to fit every brand and every budget. With a relaxing and fun environment, Blogger Bash will once again provide the perfect opportunity to grow your blogger network, receive invaluable feedback on new product introductions, and find new brand ambassadors. And—these bloggers know their stuff. In the age of the Internet, social media matters and these bloggers have a lot of influence on YouTube, Facebook, Twitter, Instagram, and more. If you are interested in learning more about getting involved with Blogger Bash this summer, please contact Laurie Schacht at thetoyinsidermom@gmail.com or (212) 575-4510, or visit www.bloggerbash.com. ••••
The Licensing Book • 17
Industry Trends
Licensing Trends
by Steve Reece, CEO, Kids Brand Insight
W
ith Brand Licensing Europe imminent, it’s always a good time to take stock and review trends affecting our industry. The first observation I would make is to recognize the sheer proliferation of brands and entertainment content from which licensees can choose. In my specialized area of kid-targeted entertainment and toy brands, there is a befuddling array of animated properties, long-term mass franchises, and of course, brands originating in the digital space. However, my second observation is a hierarchy in terms of strength of commercial potential for licenses. Licenses tend to be adopted on a “horses for courses” basis. The major global corporate consumer product companies in each category tend to take a major slice of the pie when it comes to corporate-owned global brands. Licenses that get really hot overnight tend to attract more opportunistic companies that can move quickly enough to exploit in-and-out opportunities, while evergreen brands tend to attract long-term partners with a more cautious and stable business model. Another major factor to acknowledge in the world of kids’ entertainment brands is the consolidation of several perennial juggernaut brands under one roof. It’s only comparatively recently that the acquisitions of Lucasfilm/Star Wars and Marvel by Disney went through—recent enough for the full ramifications and impact not to be fully realized yet. From a licensee perspective, this consolidation of such attractive brands is both a good thing and a potential challenge. It’s a good thing because one organization can represent so much opportunity, and therefore a licensee in the kids’ entertainment space could quite possibly see this massive array of hugely compelling brands as a one-stop shop. But there is the challenge of needing to maintain a strong relationship in order to protect such a potentially huge slice of the available licensing pie.
18 • The Licensing Book
In the digital world, after a comparatively turbulent/disruptive three- to five-year period, we seem to see calmer waters now, with numerous established powerhouse app brands continuing to drive merchandise sales at hero levels. In terms of platforms, we still feel the shakeout of the transition from virtual worlds to app brands. Virtual worlds most commonly have significant development investment—i.e., millions of dollars—with a more strategic approach and more predictable growth in metrics. However, in several cases, app brands have come out of nowhere to find a huge following comparatively quickly. At this point, though, it seems we have a more mature market in that the established franchises are unlikely to go away, but instead are into the brand extension phases, which clearly bodes well for licensees in terms of longevity of license life. The runaway smash hits that come from out of nowhere, such as Flappy Bird, are likely to keep on coming, but in terms of risk avoidance and predictable life cycle, app brands seem to have moved into a new era of maturity. This, finally, brings us to a look at future platforms that will drive brands (both established and new). Virtual reality is set to explode during the next few years, and we’re bound to see some new merchandisable brands arise out of that. One thing’s for sure: There is no shortage of choice for licensees, and seemingly no reduction in appetite •••• for licensing, so the future looks bright. Steve Reece is a consultant working in the toy and games space in Europe and worldwide. He is also the CEO of Kids Brand Insight, a brand-focused consumer insight consultancy that helps toy companies and kid-targeted entertainment companies deliver great products and entertainment experiences to modern day kids. For more information, visit www.kidsbrandinsight.com.
Winter 2015
Marketing Memo
PACKAGING
F
GROUND-BREAKING
by Ted Mininni, president, Design Force Inc.
inding the ideal package design solution is never simple. If it was, there would be more brand successes at retail than there are. While design creativity is important, it must be balanced by an understanding of brand marketing and increasingly competitive retail environments. That is where a lot of package designs fail. A design cannot be focused on artistic beauty at the expense of leveraging the brand and its assets or it risks being unsaleable. The ultimate challenge: packaging an innovative consumer product or brand that represents a new category. Since consumers devote five seconds on average to looking at the retail shelf, a new brand or category has to be sharply defined and differentiated from everything else around it to grab consumers’ attention and make a powerful impression. Recall the adage: “You only get one chance to make a first impression.” Think of what that means for brands. How painful is it to be bypassed or rejected without a second chance? Some might argue that when it comes to high-tech products, consumers are likely to spend more time assessing new brands and products in retail stores. True—but competition is as intense in these categories as any other. For all consumer product brands, the onus is squarely on packaging to sell the product, the brand, and the category, no matter how much advertising or media buzz gets consumers into stores. Branded products are sold right at the shelf.
The Design Solution for a New Branded Product: Making It Come Alive Bandai America recently engaged Design Force Inc. to develop a package design system for a new
20 • The Licensing Book
BRANDED PRODUCTS
branded product line: SprüKits, poseable action figure model kits that feature high-profile licensed entertainment properties. Action figure model kits are a familiar product form in Japan, but are virtually unknown in the U.S. and other global markets. The mission: Develop a package design system for a new consumer product brand that will define a new product category. We had to let consumers know, at a glance, that SprüKits aren’t just snap-together model kits, nor are they merely action figures. They are a combination of the two—action figures that consumers build themselves by removing all of the necessary parts from sprue frameworks, much like those found in traditional plastic model kits, but once assembled, they are fully articulated and completely poseable. The package design solution: Leverage a carefully constructed hierarchy of visual communication defined by design architecture and color. All SprüKits communication is attached, like model pieces, to a sprue framework in neutral gray complemented by accents of red, white, and black to define the package design architecture. The brand communication “Poseable Action Figural Model Kit” appears in conjunction with the SprüKits brand identity to define the unique new product form. At the bottom center of the packaging, an indicator quickly lets consumers know which of three levels of expertise is needed to assemble the kit. Iconography informs that no glue or scissors are required. Exploded and assembled product views show assembly in more detail, and a subtle pattern of sprues fading through the background further reinforces the product’s model-building aspect. Each aspect of the visual brand communication works cohesively to reinforce that the product is about model building, while emphasizing that it is a new product form. The remainder of the package design solution com-
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municates the licensed brand. The property logo and a large visual of the character in action are the main focus of the package design, while background imagery changes to support each property. Current product offerings feature licensed action figures that are fan favorites from the world of comic books, movies, video games, and animation, including Superman, Batman, LBX’s Achilles, and Halo’s Master Chief. There is crossover appeal for SprüKits among kids, adults, collectors, and fans of these entertainment properties. More importantly, the package design system was developed to easily accommodate a wide variety of new licensed properties in the future. The net result is a visual and verbal brand communication hierarchy that tells consumers what they need to know at a glance. Finally, the packaging leverages the most significant ingredient for consumers: emotional appeal. By clearly delineating this new branded product in a succinct manner and by leveraging emotive visual and verbal cues, consumers are far more likely to make the purchase. SprüKits promise challenges in the building of each poseable action figure and leverage the power of some of the world’s most beloved licensed heroes. It is a brand that appeals to a wide range of consumers in a highly emotive manner.
Breaking Ground: Complex Products Sold in Simple Packaging Consumer electronics categories are burgeoning with innovative new products at an accelerated pace. While many products are incredibly complex, brand managers and package design consultants—aware that consumers who aren’t high-tech oriented can be intimidated and even turned off—work to simplify packaging to sell the product with the right amount of visual and verbal brand communication. Even savvy consumers tend to gravitate toward brands that simplify the complex, clearly delineating the desirability of one product versus its competitors on the shelf. The Roku Streaming Stick offers a good example of this. The slim purple 3500R streaming stick stands out against a chartreuse background on the packaging. The white Roku brand identity and the product description “streaming stick” is landscaped across the bottom of the packaging and the product visual and description—as well as brand logo—can be seen from far away. A colorful speech bubble filled with channel streaming options appears across the top with the verbal brand communication: “Plug it into your TV. Start streaming.”
Winter 2015
This design element lets consumers know instantaneously that they can stream favorite TV channels, movies, and more. It also communicates that consumers can access more than 1,000 channels in all. Simple, right? Plug the Streaming Stick into a TV and start operating it. The implication is that the Roku Streaming Stick works from a remote or a smartphone, but I think it would have been a smart idea to state this clearly on the packaging. The Roku website also notes, “Fits perfectly behind wall-mounted TVs”—something else that consumers might like to see on the front of the packaging. These answer some of the first questions that consumers are likely to have. Fortunately, most consumers seek information online before they make purchase decisions. In stores, many shop with smartphones and could access the Roku website and consumer reviews online. Most reviews are favorable, reinforcing the packaging information: It is simple in design, simple to install, and offers consumers a multitude of content-rich channels. As with all consumer product categories, Roku faces competition in the marketplace, but the visual and verbal brand communication leveraged by the package design make it easy to understand what the product does at a glance, making it easy for consumers to choose. Finding the balance between simplicity and the proper amount of brand communication is always the challenge in modern consumer product packaging.
A Last Thought Analysts point to ineffective packaging as a major culprit in new product failures in the marketplace. However, even if effective packaging helps to sell a new product or a new category, it can’t ensure long-term success all by itself. Brands can sell initially and then fail if they do not meet or exceed consumer expectations. That is why packaging is only one—abeit very important—element in the brand continuum. •••• Ted Mininni is president of Design Force Inc., a package and licensing program design consultancy to the consumer product and entertainment industries. He can be reached at (856) 810-2277. Mininni blogs about package and licensing program design at www.designforceinc.com.
The Licensing Book • 21
Delta Offers Cool Frozen Bedroom Makeovers
Delta Children has a new line of kids’ furniture featuring characters and imagery from Disney Frozen. The Frozen Plastic Toddler Bed is outfitted with colorful decals of Frozen’s Anna and Elsa, two safety rails, and a low-to-the-ground design. The bed is also available with Paw Patrol graphics. The Frozen Chair desk with Storage Bin features a removable cup holder, a fabric storage bin, and a scratch-resistant finish that protects the Frozen graphics. Designed for kids up to 50 pounds, this desk wipes clean with a dry cloth. The Chair Desk with Storage Bin is also available with Star Wars graphics. The Frozen Table and Chair Set with Storage features Disney Frozen’s two princesses on a spacious tabletop with built-in storage in the center and two chairs. Kids can also get organized with the Frozen Multi-Bin Toy Organizer and the Frozen Fabric Toy Box, both featuring Anna and Elsa. The Multi-Bin Toy Organizer is also available with Paw Patrol characters. Little Jedis can relax in the Star Wars R2D2 Club Chair and Star Wars Yoda Club Chair. These chairs are soft, plush, air-filled chairs featuring washable velour covers and emDisney•Pixar Cars broidery. The Club Chair is also available with Paw Patrol, Disney•Pixar Cars, or Disney Upholstered Chair Princess graphics. Kids can give their rooms a tune-up with the Star Wars 3D Plastic Twin Bed. Built with sturdy plastic and steel, it features removable guardrails, colorful decals, and 3-D accents of Darth Vader at the headboard. The bed is also available with 3-D Cars characters. Delta Children will also introduce Disney Princess, Disney•Pixar Cars, Minnie Mouse, and Mickey Mouse Upholstered Chairs with Ottomans. These chairs feature a plush, padded seat with a coordinating footrest, featuring kids’ favorite characters. Delta’s 9 Bin Plastic OrFrozen Table and Chair Set ganizers are the easiest way to get kids to clean up after playtime. They feature characters such as Minnie Mouse, Mickey Mouse, Cars, and Disney Princesses. These organizers feature three tiers of plastic bins for little ones to stow books, toys, and other treasures. The clean up checklist on the side makes straightening up a fun, interactive learning experience. The Mickey Mouse and Minnie Mouse Activity Easels with Storage will inspire little artists with a magnetic dry-erase surface on one side and a chalkboard on the other side. It includes a magnetic character puzzle, alphabet magnets, and two fabric storage bins. The Minnie Interactive Wood Toddler Bed features sturdy wood construction and is designed for kids ages 15 months and up. The interactive clock with a day of the week spinner helps kids learn to tell time. The bed is also available in a Mickey style. Paw Patrol Multi-Bin Toy Organizer
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Winter 2015
Sakar Brings Frozen Hits to Karaoke
Sakar International introduces the Disney Frozen karaoke line, a variety of easy-to-use karaoke systems for fans of the film Disney Frozen. The Frozen Karaoke Machine with Flashing Lights includes a handheld microphone and Anna and Elsa graphics. Kids can connect a smart device to play their own songs or sing along to “Let it Go,” “Do You Want to Build a Snowman,” and “In Summer.” In addition, Sakar will roll out Frozen-inspired alarm clocks, walkie-talkies, digital cameras, and more. For Power Rangers fans, Sakar will offer Super Mega Force-branded headphones, earbuds, speakers, cameras, and more. Kids will also be able to create their own music with Power Rangers-inspired acoustic and electric guitars, keyboards, microphones, and tambourines. In addition, a line of Power Rangersbranded cameras and digital recorders will be available for users to record and share their own actionpacked adventures. Frozen Karaoke Machine with Flashing Lights
Universal Expands Its Licensing Do -Minion
With the Minions getting their own spin-off movie this July, the Despicable Me characters are taking over Hasbro’s classic games, including The Game of Life, Trouble, Operation, and Monopoly. In addition, Hasbro will introduce the Minions Challenge Card Game, which features 32 Minions figures to collect. The Game of Life: Minions Edition Game lets players choose a job for their Minion, followed by wacky escapades such as singing at Gru’s wedding and stealing the moon. The mini-spinner can send the Minions in unexpected directions, and players can slide through a tube to different spaces. In the Trouble: Minions Edition Game, players try to get their Minion safely around Gru’s conveyor belt, sending other players’ Minions home by landing on the same space. Each game comes with a Pop-O-Matic dice roller, one Siren Stuart Minion, and Trouble Minion movers. The Game of Life: In Operation: Minions Edition Game, players cure the Minion Stuart’s sicknesses by removing items from his Minions Edition Game body, such as unicorn fluff. The player who collects all of Stuart’s funatomy parts wins. Gru has another evil plan in the Monopoly: Minions Edition Game, and it’s up to the Minions to own all their favorite properties before he can succeed. Finally, in the Minions Challenge Card Game, players deploy battle cards against their opponents. Available in May, the game has a total of 32 collectible Minions characters, and each blind bag contains one Minion character and five battle cards. Thinkway Toys will introduce Talking Minion Kevin, Talking Minion Stuart, and Talking Minion Bob, each with a head that moves in multiple directions and articulated arms. Each figure features an original voice with special effects, soft skin on the upper body, and opening and closing eyelids. Each Talking Minion comes with a character-specific accessory: Kevin has a banana, which, when placed near his ear, causes him to react; Stuart has a guitar that he will play when it is strapped on; and Bob has a teddy bear that plugs into his side. Each Talking Minion is recommended for kids ages 4 and up.
Winter 2015
The Licensing Book • 23
You’re Licensed Everywhere, Charlie Brown!
With The Peanuts Movie from Twentieth Century Fox and Blue Sky Studios due in theaters this November, Charles M. Schulz’s Peanuts will see a surge of licensed products, including toys ranging from plush to electronic accessories. Just Play, the master toy partner for Peanuts in the U.S. and Canada, with rights to both classic Peanuts as well as The Peanuts Movie, will release plush, figures, vehicles, play sets, and role-play toys for preschoolers set to arrive at retail in August. Torrance Trading has the licensing rights for specialty and infant plush. The licensee will place a strong emphasis on Snoopy and his sister, Belle, the bow-loving beagle who is back in the public eye following a hiatus. Belle starred in a popular merchandising program during the ’70s and ’80s. Schleich will continue to produce a variety of classic Peanuts figurines, scenery packs playing on moments from the Peanuts holiday TV specials, Belle collections, and new special packs dedicated to The Peanuts Movie. During the upcoming Halloween season, Palamon will release brand new Peanuts costumes suitable for all ages. Lionel Trains will create hobby-grade train sets for collectors, and Crayola will offer licensed Color Wonder activities. Scheduled for release this fall, Sakar will offer a line of youth electronics and phone and tablet accessories featuring both classic Peanuts and The Peanuts Movie. For board game enthusiasts, Wonder Forge will have the Flying Ace game to go with its classic matching and seasonal games, all tying back into the film. Mattel will offer a licensed Uno game, as well as classic and collectible cars under the Hot Wheels label. Cra-Z-Art continues to produce the classic Snoopy Sno-Cone Maker, and will expand its license for a variety of color-your-own crafts and activity sets in the fall. Cra-Z-Art will also deliver an entire range of girls’ activities in time for the premiere of The Peanuts Movie.
Peanuts figures, from Just Play
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Property Profile
Expands Digital Footprint, Creative Consumer Product Line The Licensing Book chats with Janice Ross, vice president of brand marketing and public relations, American Greetings Properties, about the Care Bears brand in the 21st century.
How does American Greetings Properties (AGP) extend the Care Bears’ appeal to today’s kids after so many years in the marketplace? We have taken a strategic approach to bring the Care Bears to kids today in ways that are relevant to them. Care Bears content is available on various platforms where kids are online, such as social networks, apps, and instant streaming on Netflix. Additionally, the brand is accessible for kids through various consumer products, like our new huggable plush toys from Just Play.
Do you think nostalgia plays a role in the current success of the brand? Nostalgia absolutely plays a role. We have been fortunate enough to have three generations of fans growing up loving the Care Bears, and many of them are now parents who share the brand with their children.
How is AGP taking Care Bears into the digital space? What platforms are you using to expand the brand to the online community? The digital space is a great avenue for the Care Bears brand because we can bring the characters to life through engaging storytelling and activities. Parents love our apps because of the educational opportunities they provide in titles such as Love to Learn. Social media expansion was a big initiative for us last year. We bolstered our efforts on YouTube, Facebook, and Pinterest and launched on Twitter and Instagram. Each social media platform provides us with an opportunity to connect with members of our engaged fan base who have a
26 • The Licensing Book
lot to share about their love of Care Bears. It also gives us a chance to engage new fans and parents with content that’s conversation-worthy.
How are the ideals of the brand reflected in new licensing initiatives for 2015? Care Bears is a unique brand that connects emotionally with kids through each character’s belly badge. Whether it’s Cheer Bear or Grumpy Bear, children experience a wide range of emotions and Care Bears are there for them every step of the way. We harness these special brand characteristics with huggable plush toys that provide kids with just the right Care Bear when they need them, apps that help children problem solve, and apparel that lets fans wear their favorite Care Bears character.
How is the Care Bears brand reflected in AGP’s charitable initiatives this year? From a charitable standpoint, we’ve aligned with organizations such as Operation Smile, which literally gives a smile to children with cleft palates and other facial deformities. Care Bears is all about making children feel good and helping them deal with stressful or difficult situations, so this was the perfect fit for us. These type of partnerships help us take the brand values to the next level with our Share Your Care campaign, which is an initiative that ties closely to the Care Bears core brand values of compassion and caring. This year, Share Your Care will give fans of the brand opportunities to pay it forward through various activities throughout the year. ••••
Winter 2015
J ust Play
Care Bears Sing-a-longs, from Just Play, magically interact with each other and can talk, sing, and dance in sync to three different songs. The bears can sing solo, as a duet, or as a group. Kids can choose from Funshine Bear, Cheer Bear, Share Bear, and Grumpy Bear. Designed for kids ages 3 and up, the Care Bears Sing-a-longs are set for release this fall.
Dynacraft
Dynacraft will release a fully loaded 14-inch Care Bears Bicycle this spring for kids ages 4 to 7. The bike features a deluxe frame and paint, a Care Bear plush, a handlebar bag, training wheels, a coaster, a front caliper brake, and streamers.
Leg Avenue
Leg Avenue’s Cheer Bear Adult Halloween Costume is a two-piece pink fleece petticoat dress with a glitter tulle skirt overlay. The fleece also features an attached tail and the set includes a matching ear headband. Designed for women ages 14 to 25, the costume is set to release in time for Halloween.
Winter 2015
Disguise
The Cheer Bear Deluxe Tutu costume, from Disguise, is designed for kids ages 2 to 6. Featuring a full tutu skirt, an ear headband, glitter sleeves, a belly badge, and a hip heart, kids can use the costume for Halloween or for role-play fun year-round.
Global Brands Group Beauty
Care Bears Flavored Lip Balm Party Pack, from Global Brands Group Beauty, includes six flavored lip balms for kids ages 3 and up. Kids can choose from Wish Bear Cotton Candy, Tenderheart Bear Orange, Best Friend Bear Grape, Wonderheart Bear Cherry, Funshine Bear Lemon, and Grumpy Bear Blueberry.
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Ravensburger Pieces Together Disney Magic
Ravensburger’s Eiffel Tower, Mickey & Minnie Edition is a 216-piece, 3-D puzzle featuring the Eiffel Tower decked out in Mickey and Minnie artwork. The puzzle features precision-cut, flat, hinged, and rounded pieces that click into place without glue. Puzzlers can put the structure together by the numbers located on the inside of every piece, by the exterior design, or both. Designed for kids ages 12 and up, this puzzle is a 17.3-inch replica of the Eiffel Tower with a Disney flair.
The Doctor Is in BBC ’s House for Toy Fair
Doctor Who headlines the BBC’s licensed offerings for the year. Funko will offer the Twelfth Doctor Pop! Vinyl Figurine, a stylized figure of the Twelfth Doctor that stands 3.75 inches tall, and comes in a window display box. There will also be an Eleventh Doctor Pop! Vinyl Figurine, with similar measurements and packaging. Courtesy of Elope, the Twelfth Doctor Jacket is a polyester blend jacket lined with contrasting red. Tailored to fit most, the jacket includes an inside pocket for Sonic Screwdrivers, and is available in men’s sizes small/medum, large/extra-large, and extra-extra-large. Kurt Adler has new decorative items, including the 3.5-inch Doctor Who Davros Figural Ornament, which features the scientist arch-nemesis of the Doctor in his black-and-silver life support chair, with matching costume and a menacing appearance. The Five-Light Doctor Who Tardis Luminary Outdoor Décor consists of five 12-inch versions of the iconic time machine and spacecraft, with each set of five lights featuring a 24-inch lead wire and 18 inches of space between each Tardis. The Regenerations Wave Titan figures includes every numbered Doctor, including the Twelfth Doctor, as they looked in their first appearances. The set also includes The Doctor’s Wife River Song, “Hello Sweetie.” The Monopoly: Doctor Who Villains Edition, from USAopoly, features the Doctor’s most memorable exploits against many of his greatest adversaries. Intended for kids ages 8 and up, the game lets players travel through time and space, with challenges from The Silence, the Cybermen, The Master, and the Daleks. The Tardis-shaped Tin Tote, from Vandor, can be used for holding lunch and storing gear, and includes a metal latch closure, collapsible plastic handle, and bright character designs. Underground Toys will also expand its offerings for Doctor Who. Figural Doctor Who key chains from Underground Toys include a range of fan-favorite heroes and villains, including Weeping Angel, Tenth Doctor David Tennant, Eleventh Doctor Matt Smith, Adipose, and the Tardis key, in sizes ranging from 3 to 5 centimeters. The Doctor Who noise-isolating character ear buds are available in Dalek, Weeping Angel, and Adipose styles. Travel through time and space in style with Doctor Who lanyards featuring either 3-D figural or etched rubber charms. The Doctor Who 4-inch resin figurine collection includes every Doctor and all the greatest monsters from the classic BBC science-fiction series in 1:21 scale. New figures include Cyberman (Earthshock) and the Fifth Doctor. New to the line of fully articulated 3.75-inch action figures are Voc Robot and Draconian. Doctor Who Twelfth Doctor Regenerated Figure, from Underground Toys
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Winter 2015
Rubie’s Gives Dress-Up a Super- Charge
From the Batman Unlimited Collection, by Rubie’s Costume Co., the Deluxe Batman Costume includes a muscle chest jumpsuit with attached boot tops and a matching cape. This caped crusader is available in child sizes small, medium, and large. From the DC Comics Universe, the Supergirl costume includes a pink sequin dress with a tutu skirt and an embroidered matching cape. This gal of steel is available in sizes toddler, small, and medium. Rubie’s is also set to roll out a new Paw Patrol costume collection based on the Nickelodeon series for preschoolers. The Marshal costume includes a jumpsuit, a headpiece, and a backpack. This heroic little pup is available in toddler and child size small. Also featured in the line are Chase and Skye costumes. Rubie’s Costume Co. will expand its Imagine by Rubie’s line this year to include new products from Avengers 2: Age of Ultron. Perfect for dress-up and role-play fun any day of the year, each of these superheroes packs a powerful punch. The Muscle Chest Shirt Box Set includes Thor, Captain America, Hulk, and Iron Man. Batman Unlimited Deluxe Batman Costume
AG Proper ties Updates Classic Brands
Originally introduced in 1983, AG Properties’ Care Bears brand will get a more vibrant and colorful look in its new iteration. With a website, digital games, and apps, the Care Bears take sharing even further with thousands of fans on social media. The brand has also introduced a new campaign, #ShareYourCare, which speaks to the core values of the brand. Licensing partners will show off Care Bears products at Toy Fair, including master toy partner Just Play; Wonder Forge for domain games and board games; Commonwealth Toy and Novelty Co. for backpack clip-ons; Playhut for indoor play tents; Montco for activities, including corrugated artboards for coloring; Karmin International for puzzles; Beaver books for water magic board books and bilingual books; Kellytoy USA for amusement park plush and sporting goods; Bendon Publishing for coloring, activity books, and educational books; and Skyhigh International for back-toschool and stationery. The Strawberry Shortcake brand celebrates its 35th anniversary this year with events coast to coast. Strawberry Shortcake will help open the 112th North American International Toy Fair; she will be honored on February 16 at a fancy fete in The Bridge Direct Toy Fair booth; and she will show off her wares at Mercedes Benz Fashion week on February 17, where her exclusive Papyrus card line by artist Bella Pilar will debut. Strawberry Shortcake will also hobnob with Hollywood during a special Oscar preview party with birthday cake and cupcakes. With more than 600 licensees, Strawberry Shortcake and her friends have seen several updated looks to cater to the current marketplace, but her values and strength of character remain the same. Licensees include master toy partner The Bridge Direct; Jazwares for electronics; Montco for activities, including corrugated artboards for coloring; Karmin International for puzzles; Beaver books for water magic board books and bilingual books; Kellytoy USA for amusement park plush and sporting goods; Bendon Publishing for coloring, activity, and educational books; and Skyhigh International for back-to-school and stationery. Strawberry Shortcake card by Bella Pilar, from Papyrus
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The Licensing Book • 29
Electronic Arts Takes Readers on PvZ Adventures
Plants vs. Zombies: Timepocalypse is a new plant-filled, zombie-zapping comic adventure. A follow-up to the comic Plants vs. Zombies: Lawmageddon, the new game features Crazy Dave helping his niece, Patrice, and young adventurer, Nate Timely, as they fend off Dr. Zomboss’ latest attack, which takes place throughout time. The artistic duo Paul Tobin and Ron Chan take PopCap’s Plants vs. Zombies through the ages, from pre-history to the future. Designed for readers ages 8 and up, Timepocalypse features zombies, powerful plants, a pirate named Chestbeard, disco dance-offs, and more.
Saban Brands Grows Power Rangers and Julius Jr.
Saban Brands will extend its Power Rangers and Julius Jr. properties with new toys, books, and more. From Bandai, the Power Rangers Dino Charge Deluxe Dino Charge Morpher features lights and sounds from the TV series, Power Rangers Dino Charge, as well as two Dino Chargers. The Morpher emits different sounds depending on which Dino Charger kids insert. More than 40 Dino Chargers will be available this year. The Power Rangers Dino Charge Deluxe Dino Saber includes one Dino Charger, and forms the Dino Cannon when combined with the Morpher. The Power Rangers Dino Charge Dino Zord Cycle with Figure includes a poseable, 5-inch Ranger figure, and offers three ways to play: the Cycle Mode, morphing into Dino Zords, and morphing with Zord Builder items. For Julius Jr. fans, the Julius Jr. Snow Monkey Adventures DVD Set, available through Amazon, includes six episodes along with a full-size Julius Jr. figurine, from Fisher-Price. Random House Children’s Books will bring Julius Jr. to literary life. Rock On!—Big Coloring Book is an oversized coloring book with a built-in handle, as well as images of Julius Jr., Clancy, Ping, Sheree, and Worry Bear for kids to color. The Crayon Craze!—Step into Reading Paperback feaPower Rangers Dino Charge Dino Zord Cycle with Figure, from Bandai tures Paul Frank’s creations and comes with a shiny foil cover, as well as two sheets of sparkly stickers. Intended for kids ages 3 to 7, the Sticker-Tastic!— Deluxe Stickerific Paperback is an activity book featuring more than 300 stickers, and Open the Door and Explore—Pictureback with Flaps has a flap to lift on every spread. The Julius Jr. brand will grow with new toys from Fisher-Price, intended for kids ages 2 and up and available at Toys “R” Us. The new Sortin’ Sagebrush Farm includes one poseable, 3-inch Worry Bear figure, as well as smooshberries and hen accessories. It can connect to other Julius Jr. play sets. The Julius Jr. Box Top Guitar features more than 20 sounds, including music, interactive games, and phrases. Finally, the 12-inch-tall Julius Jr. Talk-O-Matic Pal includes more than 10 signature phrases, such as “Eureka!”
Julius Jr. Sortin’ Sagebrush Farm, from Fisher-Price
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Winter 2015
Want to Reach Millions of Consumers During the Holiday Season? • Holiday Gift Guide in the
November issue of Woman’s Day magazine, read by nearly 21 million* consumers (*MRI Spring 2014) AS SEEN IN
• Extensive Online Presence A comprehensive companion website, toyinsider.com, features links to participating advertisers’ and retailers’ websites and includes product reviews, demo videos, and guest blogger contributions.
• Widespread Media Coverage Laurie Schacht, the TOY INSIDER MOM, appeared in more than 200 National and Major Market TV segments, along with hundreds of print and online features.
• Participation in National Sweepstakes and Guerilla Marketing Programs to showcase participants’ products
To participate in the 10th Annual The Toy Insider™ contact: Jonathan Samet —(212) 575-4510 x 2321, jsamet@adventurepub.com Laurie Schacht — (212) 575-4510 x 2320, laurieschacht@aol.com www.toyinsider.com
Wicked Cool Toys Bakes Girl Scout Cookies All Year Round
This year, Wicked Cool Toys will introduce a line of role-play toys inspired by girls’ leadership organization, The Girl Scouts. The Girl Scouts Cookie Oven will feature mixes inspired by Girl Scout Cookies, such as Thin Mints and Trefoils. This real working oven comes with tools and mixes that allow girls to make cookies that look and taste just like the real thing. The oven features a viewing window that lets bakers see the treats they’re making and a warming station to heat and melt cookie coatings and frostings. With the Girl Scouts On-the-Go Wagon and Cookie Stand, girls can express their creativity, learn new skills, and experience the fun of Girls Scouts all year long. Wicked Cool has also entered a licensing agreement with Original Appalachian Artworks Inc. as the master toymaker for its Cabbage Patch Kids brand, created by Xavier Roberts. With a product line for this year and beyond, Wicked Cool Toys will allow kids to embrace and create lifelong memories along with parents and avid collectors who have known the brand for more than 30 years. Girl Scouts Both toy lines will hit mass-market retailers throughout the U.S. beginning this fall. Wicked Cool will Cookie Oven also add to its Wild Kratts, WWE, and Disney Wood lines.
MasterPieces Puzzle Co. Turns 20 with New Licenses
MasterPieces Puzzle Co. celebrates its 20th anniversary this year with new licensed lines and brand extensions. The company has partnered with Ty for Ty Beanie puzzles. Nostalgic Beanie Babies are featured in 700-piece search-and-find jigsaw puzzles in specialty acetate boxes, and new Beanie Boos are featured in 100-piece puzzles with no-mess glitter. Tetris-branded brainteaser puzzles support a growing category of novelty and specialty puzzles for kids and adults. The Tetris Cube is a game featuring 16 3-D plastic Tetriminos. Players can find solutions from easy to difficult, depending on how many levels they can solve. Additional puzzles include a flat Tetrimino puzzle, a traditional 500-piece jigsaw puzzle, and a three-layer Tetrimino brainteaser. A new partnership with Discovery Channel has allowed MasterPieces to create Animal Planet puzzles for both kids and adults; Shark Week puzzles; and Cake Boss puzzles, featuring colorful cakes from the TV series. MasterPieces has also partnered with the NFL Players Association to create 100-piece puzzles for kids, each packaged in easyto-store foil packs. Each puzzle features popular players, including Peyton Manning, Tom Brady, Russell Wilson, and Aaron Rodgers. A licensing agreement made with the National Hockey League (NHL) will result in 1,000-piece Panoramic puzzles featuring top team arenas. There will also be a line of NHL Checkers, which will feature hockey puck playing pieces and a playing board that depicts a realistic ice arena. The U.S. Army has granted MasterPieces licensing rights to produce a custom-painted puzzle line by artist Dona Gelsinger, as well as wood craft and 3-D wooden puzzles featuring Army vehicles.
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eOne Par tners with TCG for Peppa Pig Lineup
Moose Toys Figures Out World of Warriors
Moose Toys will launch a range of mini figurines based on the combat and adventure game World of Warriors. With more than 120 figurines to collect, kids can amass their armies and challenge their friends. The line features two-, four-, and eightpacks, as well as the Action Figure with Mechanical Features, Battle Gear, and the Battle Playset.
Ohio Art Draws on a Classic
The Frozen Etch A Sketch Jr., from Ohio Art, features a magic drawing screen with an Elsa and Olaf graphic. This classic toy that shakes to erase is designed for kids ages 3 and up.
Entertainment One (eOne) has partnered with TCG on a full range of officially licensed Peppa Pig games and puzzles. The Peppa Pig Pop Up Foam Floor Puzzle includes 26 easy-to-grip, thick foam puzzle pieces featuring popup characters, vehicles, and landmarks. It includes a zippered vinyl bag for easy storage, and is designed for kids ages 3 and up. With the Peppa Pig 12-Piece Mix & Match Puzzle, kids ages 18 months and up can mix and match five different outfits with their favorite Peppa Pig friends. The set includes five tops, five bottoms, and two faces. There are two styles to choose from, and the puzzle comes in a wooden storage box for easy cleanup. The Peppa Pig Wood Puzzle Clock features 12 die-cut wooden shapes that show hours on one side, minute values on the other, and a surprise image underneath. Kids ages 2 and up will learn counting, colors, shape recognition, and more with the help of self-correcting spaces that reinforce the position of each piece. The Peppa Pig Domino and the Peppa Pig Match Up Game assortments will teach kids about problem solving. The Domino game includes 28 dominos made from extra chunky card stock for kids to line up and match their favorite Peppa Pig friends. In the Match Up Game, kids collect pairs of Peppa Pig friends on 24 match cards. Both games come in a re-sealable foil bag for easy storage. Peppa Pig Gigantic Ups & Downs gets kids ages 3 and up to climb ladders and slide down snakes into muddy puddles as they race to be the first to the top. The game includes five large Peppa Pig character pawns, a spinner, and a 38-inch square play mat. When kids press the red button, the Fairground Ride spins in the Peppa Pig Fairground Ride Game. If a player lands on a red space, he or she must hop off, but if that player guesses where an empty swing will land, they can jump back on. Peppa Pig Wood Puzzle Clock
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Out of the Blue Adds Character to Color forms
This fall, Out of the Blue will debut a new line of vinyl, stick-on Colorforms play sets featuring licenses such as Disney Frozen, Doc McStuffins, and Disney•Pixar Cars; Marvel’s The Avengers and Spider-Man; Universal’s Minions and Curious George; and Nickelodeon’s Dora, SpongeBob, and Teenage Mutant Ninja Turtles. The new line includes the On the Go Assortment, with three Colorforms sheets in each package; and a two-sided, fold-out background with pocket storage. The Take Along Assortment includes four Colorforms sheets, one of which has a special feature, such as glow-in-the-dark or glitter. Available in licensed character themes, the new Create a Story Boxed Set has an easel play area that unfolds from the box, as well as six large Colorforms sheets, one of which has a special feature. It also comes with four backgrounds in a closed box. The Colorforms Roll and Play Story Creator includes six scrolling backgrounds, restickable Colorforms pieces, and the ability to record and play back the user’s voice with sound effects. Colorforms Big Wall Playsets each have a large sheet that sticks to walls, a background, and 12 large Colorforms.
Tomy Beats Average Toys by a Miles
Disney Junior’s Miles from Tomorrowland is a new intergalactic adventure series that incorporates unique space and science facts into storylines that chart the outer space missions of Miles Callisto and his family as they help connect the galaxy on behalf of the Tomorrowland Transit Authority. Tomy will bring the adventure to life with its new toy line designed for kids ages 3 and up. The Miles from Tomorrowland Stellosphere Play Set line includes play sets, such as the Stellosphere play set that transforms into three different ships; role-play toys, such as the Superstellar Blastboard that features lights, sounds, and three balancing games; figures; and other vehicles. Tomy International will expand its Pokémon line this year with Ash’s Arena Challenge. Kids can turn Ash’s hat backward to get him battle-ready and send Pikachu into action. The buttons on the arena activate Pikachu’s Quick Attack, Thunderbolt, and Iron Tail to take down any opponent. These three unique attack actions also activate music and voice and attack sounds for realistic battle play. The set includes articulated Ash, Pikachu, and Wobbuffet figures and is designed for kids ages 4 and up. Tomy will expand the John Deere Gear Force and Monster Treads brands, and will introduce Mighty Movers, a new line of action vehicle launchers and play sets. John Deere Monster Treads Lightning Wheels features tires with LED lights, and when kids spin the wheels, they can see lightning wheel action. The John Deere Gear Force Mega Scoop Tractor is a tractor featuring multi-purpose mega scoop arms, lights, and motion-activated sounds. Tomy’s Chuggington StackTrack line features new play sets based on the new season of Chuggington. The High Speed Rescue Motorized Playset features an engine-powered turntable, and a motorized Wilson engine that climbs steep, races fast, and triggers exciting action. The Drop & Load Dash Motorized Playset is based on Delivery Dash at the Docks, the TV special airing this fall. Additionally, Tomy is the global master toy licensee for the upcoming Disney•Pixar film The Good Dinosaur, set for release this fall. Tomy will produce a full range of toys designed to capture the unique personalities of the film’s characters, including figures, feature plush, interactive toys, role-play items, and more. Miles from Tomorrowland Maximum Miles figure
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The Licensing Book • 35
A Look Inside
S
As Thunderbirds returns to TV screens, ITV Studios Global Entertainment has plans to introduce the live-action/animated series to consumers worldwide. eptember 1965 marked the TV debut of Thunderbirds, a show about a family of adventurers with highpowered vehicles who dedicated themselves to saving people in danger. The show, which originally aired until the end of 1966, is remembered for its distinct visual style, as well as the title sequence, which always started with a countdown: “5, 4, 3, 2, 1. Thunderbirds are go!” This spring, the Thunderbirds franchise makes its triumphant return with Thunderbirds Are Go, a new TV series produced by ITV Studios in partnership with Pukeko Pictures and Weta Workshop. The new show, scheduled to premiere on ITV and CITV in the UK, followed closely by other markets such as Australia and
Tracy Island, as depicted in Thunderbirds Are Go
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New Zealand, pays homage to the original, which featured marionette puppets with motorized facial movements, courtesy of famed British producers Gerry and Sylvia Anderson. Along with intricate puppetry, the original Thunderbirds boasted miniature sets that looked photographic, futuristic storylines that engaged audiences during the ‘60s, and an emphasis on family. All of these qualities remain relevant, and the new show intends to bring them—and more—to the modern audience. “The brand really is a national treasure,” says Trudi Hayward, senior vice president of global merchandise, ITV Studios Global Entertainment (ITVS GE). “Audiences were captivated by themes such as space travel and advanced technology, in addition to the message of helping to rescue and save people.” Thunderbirds Are Go will once again revolve around the five Tracy brothers, though this time around, there will be a female character named Kayo. The new show will also feature CGI-animated characters and vehicles in the place of puppets; however, the backgrounds will consist of miniatures, which is in keeping with the style of the original series. This particular visual aesthetic was chosen in order to strike a balance between old and new, as befitting a show that, ideally, will appeal to viewers who have never heard of the property, as well as those who watched it
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during their youth. “Gerry and Sylvia Anderson’s classic series was groundbreaking for its time,” says Giles Ridge, executive producer of Thunderbirds Are Go. “When we were thinking of a style that would be distinctive and cater to both a new audience and existing fans, we thought rather than follow the crowd, let’s pay homage to the original show and offer something completely revolutionary for our time.”
Licensed Products Are Go!
The launch of Thunderbirds Are Go will coincide with a full-scale global consumer products program, which will debut at retail this fall. The first wave of licensing partners for the brand include master toy partner Vivid Imaginations, Simon & Schuster, DC Thomson, Kokomo, and more. Vivid’s initial toys will launch during the third quarter, and according to Hayward, development is already underway for 2016’s toy range, with plans to add new play patterns to the existing line. Vivid has worldwide toy rights excluding the U.S. and Asia, and plans to launch a new hero product every third quarter. The company’s upcoming line includes a play set of Tracy Island—the Thunderbirds’ headquarters—as well as a vehicle play set, action figures, and role-play items. The Vivid toy range will primarily target boys ages 5 to 11, with a secondary appeal to girls, adult fans of the brand, and fathers. According to Hayward, releasing one new hero product each year allows ITVS GE and Vivid to maximize impact in the run-up to key retail periods—in this case, the back-to-school season and Christmas. “Just as with the classic toy line, we want the new range to be must-have toys,” she says. “We have great expectations for the whole range—and in particular, Tracy Island—which we hope that every boy will want for Christmas.” With Vivid and other licensees, ITVS GE plans to expand the toy category to include dress-up, construction toys, board games, and puzzles. Hayward also anticipates publishing, digital, and back-to-school to be driving categories, and for the brand to appeal to crossmarket retailers and categories such as gifts, apparel, homeware, food, and confectionary. “We are taking a long-term view on the licensing
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Thunderbird 1, from Thunderbirds Are Go strategy that prioritizes quality and innovation, and we want to work with the best-in-class licensees that reflect our vision and genuine passion for the brand,” says Hayward. Among licensees that have already signed on, Simon & Schuster will release a series of activity, novelty, sticker, and storybooks that will be available across both print and digital formats. Other publishers include DC Thomson, which will release the official Thunderbirds Are Go annual and monthly magazine, and Danilo, which will produce a range of greeting cards and the Thunderbirds Are Go calendar. Licensee Kokomo will offer a range of toiletry items for the personal care category, MV Sports will provide outdoor play items, and Posh Paws will introduce licensed bags and backpacks next year as well.
Innovative Marketing That Inspires
To date, Thunderbirds Are Go has received significant interest from fans new and old, partly the result of a clever sub-marketing campaign, says Hayward. For example, leading up to the official launch of the show, ITVS GE launched a “secret” website, Hood Cam, inspired by the series’ main villain, The Hood. It attracted thousands of fans, and was featured on several prominent websites in the UK. Thunderbirds Are Go has already been renewed for a second season, which will air in 2016 and 2017. That’s not bad for a TV series that has yet to air its first episode, and to celebrate, ITVS GE will continue generating excitement through the brand’s licensing program. “We intend to capitalize on the incredible momentum that Thunderbirds Are Go has achieved to date by signing the right partners in the UK and international markets following TV broadcast deals, and continuing with our mission to built yet another inspirational series that will leave both the industry and fans completely inspired, just like they were 50 years ago,” says Hayward. ••••
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Big Mouth Brings a Wave of Licensed Pool Floats
The Star Trek Captain’s Chair Pool Float, from Big Mouth Inc., resembles the captain’s chair from Star Trek, while the Classic Pac-Man Pool Float Set features both Pac-Man and Blinky the Ghost. Each float measures more than 3 feet wide. Big Mouth Inc. will also bring popular candies to the pool. The Tootsie Roll Pop Ball is a 3-footwide Tootsie Roll Pop that floats, while the Dots Candy Pool Float measures more than 5 feet wide and features rainbow colors. The Classic Pac-Man Pool Float Set
Tech 4 Kids Has Pony-rific Fashions
Squishy Pops, from Tech 4 Kids, are miniature My Little Pony collectibles that kids can wear as stylish fashion pieces. Suitable for kids ages 4 and up, Squishy Pops bracelets can be customized by adding charms and mini ponies that complement kids’ styles and personalities. When kids squeeze the Squishy Pop pony, it makes a “pop” sound.
Spin Master Has Licensing Figured Out
This fall, Spin Master will expand its DreamWorks Dragons figures line, based on the TV series of the same name and the How to Train Your Dragon 2 film. The deluxe Blast & Roar Toothless figure is a 15-inch dragon with multiple points of articulation, a glowing mouth that opens and closes with retractable teeth, light and sound effects, and a glowing spine with firing projectiles. The Paw Patrol pups are ready for any type of rescue, thanks to the Paw Patrol Rescue Training Center. With this play set, Chase can rescue a kitty from a tree, launch tennis balls for target practice, and ride the zip-line. For emergencies requiring water, Paw Patrol Jumbo Action Pup Chase and Marshall each have a Pup Pack that transforms into a super-soaking water cannon. Spin Master’s toy line based on the video game Minecraft continues to grow. The new Minecraft Vinyl Figure Assortment features two versions of the blocky character Steve: one with his pickaxe and grass cube, and one with his diamond helmet and sword. The other character in the set is the hostile Creeper with his diamond cube. Each figure has a ball-jointed head. The new Minecraft Medium Plush Assortment contains soft, accurate representations of common enemies, such as the Creeper, the zombie, and the Enderman. The Minecraft Large Iron Golem Plush has pixilated embroidered detail and soft plush material. Little Charmers is a new girls’ preschool brand based on the TV series of the same name. The line features 8inch character dolls Hazel, Lavender, and Posie. Each is dressed in a charming outfit and an iconic headband, and comes with long, brushable hair. The Hazel Doll with her Magic Disappearing Cape is an 11-inch Hazel doll that comes with an outfit, a hat, and a special cape that disappears with the push of a button. It says six different phrases and has two magical effects.
Minecraft Vinyl Steve Figure with Diamond Helmet and Sword
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Look! Up in the Sky! It’s Licensed Toys from Warner Bros. Consumer Products!
Warner Bros. Consumer Products (WBCP) is partnering with toy licensees to highlight the DC Comics universe and TV slate, which includes The Flash, Arrow, and Gotham. The Lego Group will release five new Lego DC Comics Super Heroes sets, each featuring new mini-figures. This year will also see several action figure lines based on DC Comics characters. Jakks Pacific has 20inch-tall Batman, The Joker, and other heroes and villains figures. Schleich will release collectible figurines of Batman, The Flash, and more. Each is available in a scenery pack or as a standalone figure. With Buffalo Games’ DC Super Friends 24-piece Activity Puzzle—Trouble in the Batcave, kids can assemble the jigsaw puzzle, and then explore the Batcave using the included Batman Activity Booklet. WBCP will highlight supporting partners such as Fisher-Price, classic animation brands such as Scooby-Doo and Looney Tunes, TV shows such as The Big Bang Theory, and movie franchises such as The Hobbit Trilogy.
The Flash figurine, from Schleich
Underground Toys Takes Star Wars into the Kitchen
Underground Toys takes Star Wars to a whole new level with its home and kitchen collection. The Darth Vader-inspired barbecue tongs are perfect for turning meat to the Dark Side. The tongs are shaped just like Vader’s famous weapon with a heatproof plastic handle, metal tongs, and a red storage case. They also feature Lightsaber sound effects so you can rule the barbecue as well as the galaxy. The X-Wing knife block holds a set of five high-quality kitchen knives in the style of the legendary fighter of the Rebel Alliance. The set includes a cook’s knife, a bread knife, a carving knife, a utility knife, and a paring knife. The knives are strong, durable, and feature a long-lasting cutting edge. Push the button on the handle of the Feel the Force Mug and watch as the mug mixes and stirs the drink using the power of the Force.
Yomega Bounces High with Licensed Battle Ballerz
This year, Yomega introduces Battle Ballerz, the first characters with removable, high-bounce heads. Kids can collect their favorite characters, then pop their heads off of the base for high-bouncing fun and challenging games. Each pack comes with two Battle Ballerz characters, action accessories, and two Game Discs. Each Game Disc presents a fun challenge for players to perform. The discs have grooves so they can be connected to create ramps or obstacles. Star Wars Battle Ballerz will arrive later this year, as well as other licensed properties.
Star Wars Feel the Force Mug
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Winter 2015
Uglydoll Goes on a Star Trek
Uglydoll introduces Star Trek dolls that will be available in 12-inch and clip-on varieties. The line will feature Ox as Spock, Wage as Captain Kirk, Ice-Bat as Scotty, Babo as Bones, and Tray as Uhura. Ox as Spock
Discover y Lives on an Animal Planet
Discovery Consumer Products has new consumer products, including the new Glow Art Drawing Board from NKOK. The Bridge Direct will add to its Good Stuff line with Discovery Kids View-Master Reel Packs, featuring Age of Dinosaurs, Safari Adventures, and Marine Life reels. Each pack comes with three reels containing 3-D images. Parragon will debut Discovery Kids-inspired books, while the Animal Planet toy line continues to grow within the ocean, land, and dinosaur categories. MasterPieces Puzzle Co. has family-friendly puzzles and craft kits depicting Animal Planet and Shark Week imagery. SCS Direct Inc. has Animal Planet Hatch ’Em Eggs with safari, rainforest, dinosaur, and ocean animals themes. When placed in water, they can grow up to 10 times their original size, and each egg comes with a collectible card with fun facts about the animal inside. Based on the TV series, new Gold Rush products for this year include deluxe, basic, and mini-panning kits, authentic Gold Rush Pay Dirt, and Pay Dirt Vial refills.
Imports Dragon Celebrates Caillou, Johnny Test
Imports Dragon will debut new products for Caillou and Johnny Test licenses. Caillou celebrates its 25th anniversary this year with the Caillou Classic Doll. Featuring his trademarked baseball cap and outfit, this doll has a soft body with a latex head, arms, and legs and is suitable for kids ages 1 and up. The Caillou Bath Time Play Set, also designed for kids ages 1 and up, includes a Caillou figurine and accessories that use suction cups to stick to the bathtub. In addition, kids can take their adventures into the sky with the Caillou Jet for kids ages 3 and up. The plane features light-up wings, a pilot Caillou figure, and additional accessories for airborne adventures. Imports Dragon brings kids ages 7 and up the Johnny Test Shocking Figure, which allows kids to test their luck. With four different modes of play, kids have a 50 percent chance of getting shocked by the Johnny Test figure. For kids ages 5 and up, additional sets include Johnny Test Assorted Car Figures, which allow kids to fit their figures inside their mini spy or turbo pack styled cars, and the Johnny Test Figures, which are available in single and double packs. Each single pack features one visible and one hidden figure, while the double packs include two visible and two hidden figures, inviting kids to collect common, uncommon, and ultra-rare Johnny Test figures. Caillou Classic Doll
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The Licensing Book • 41
Bachmann Whistles with Thomas the Tank Engine
The new Whistle & Chuff Thomas! Ready-to-Run Train Set, from Bachmann Industries, features a Thomas the Tank Engine with speed-activated sound and moving eyes. His analog sound system includes a whistle, puffs, and steam exhaust upon stopping. The ready-to-run electric train set comes with a 36-inch circle of snapfit E-Z Track, and is designed for kids ages 8 and up.
Beeline Is Big on Pulp Fiction
Beeline Creative has teamed up with Miramax and Quentin Tarantino for the first collectible line of talking action figures based on the film Pulp Fiction. Designed for fans ages 17 and up, the new series of 13-inch talking figures will include a signature accessory, custom-tailored clothing, and up to 12 iconic and explicit movie quotes. Beeline Creative will also introduce ThreadHeadz, a collectible line of standing stylized plush, launching with key characters from Tarantino’s Pulp Fiction and Kill Bill Vol. 1 and Vol. 2 films.
Pulp Fiction Jules Talking Figure
Activision’s Skylanders Soars on New Par tnerships
Activision continues to grow its Skylanders merchandising program into new categories with key partners. This year, Crayola will launch its first augmented reality product featuring Skylanders, allowing kids to bring their coloring to life using the Color Alive! app. Kids aim their device’s camera at the colored page to bring their Skylanders drawings to life, while the included Magic Crayon activates special effects. Kids can then interact with the coloring book characters and take photos with them. The Color Alive! app is available on iOS, Android, and Windows smartphones and tablets. Activision and Crayola will also partner this Easter for a special coloring edition of the Skylanders Trap Team Starter Pack. Kids can color in the black and white packaging, and then watch the characters come to life on their smartphones or tablets using Crayola’s Color Alive! app. The limited-edition Starter Pack will include crayons and will be available exclusively at Toys “R” Us. Activision and General Mills will team up on a Skylanders promotion on select cereals, marking Activision’s first entry into the cereal category. Beginning this March, the eight-week promotion will bring four exclusive Skystones card game sets to grocery stores, supermarkets, drug stores, and mass-market retailers. Fans can collect up to eight specialty Skystones cards that unlock exclusive characters in the Skylanders Collection Vault. New and returning licensees with additional Skylanders-branded product assortments this year include Power A for carrying cases and game accessories, Mad Dog Concepts for sleepwear, Isaac Morris for sportswear, Mad Engine for apparel, Thermos for lunch kits and Funtainers, and FAB for backpacks and school supplies.
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For Top Licenses, Look in Cardinal’s Direction
Iron Man Puzz 3D
Cardinal offers new licensed games, including Wikipedia: The Game About Everything, recommended for players ages 8 and up. The game features questions about entertainment, history, and pop culture, as well as questions about page rankings and disambiguations. The Do You Want to Build A Snowman Game, intended for kids ages 5 and up, features Olaf from Disney Frozen. The game challenges kids to complete the spelling of their word before Olaf disappears. For the crowd-sourced Star Wars Trivia Game, players test their Star Wars knowledge with hundreds of questions from the Star Wars universe. Each question was written and submitted by a Star Wars fan, and the game challenges players to build a timeline while answering the trivia questions. Top Trumps is a game of war with a trivia twist, and thanks to a partnership with Winning Moves, it is available with licenses such as Disney Frozen, The Minions, and Star Wars. Puzzle Capsules, which turn puzzles into collectibles, also feature licensed characters such as the Teenage Mutant Ninja Turtles and Darth Vader. Cardinal’s Puzz 3D line expands with the 91-piece Iron Man Puzz 3D, which replicates the Marvel superhero in three dimensions; and Jurassic Park Puzz 3D, which players can assemble and then display.
Playmates Packs in the Turtle Power
Kids can recreate the Teenage Mutant Ninja Turtles’ (TMNT) mutations over and over again with Playmates Toys’ Pet to Ninja Turtles action figures. Designed for kids ages 4 and up, kids can mutate fully articulated Leonardo, Donatello, Michelangelo, and Raphael figures from little pet turtles. Each 5.5-inch figure comes with its character’s signature weapon and is ready to fight crime. With Mix and Match Mutations, kids can mutate TMNT characters to give them different heads, arms, legs, and torsos. Each action figure is 4.5 inches tall and allows kids to create hundreds of unique mutations. Kids can choose from the four turtles, as well as Splinter, Metalhead, Shredder, Slash, Tiger Claw, Bebop, Rocksteady, and Casey Jones. T-Machines allow racing with favorite characters from the Teenage Mutant Ninja Turtles show on Nickelodeon. Each die-cast vehicle is designed for kids ages 3 and up, and captures the personality of the action-posed, non-removable figure driving it. T-Machines Single Pack Vehicles will continuously roll out throughout the year, beginning with Raph in Shellraiser, Fishface in Shell Crusher, Shredder in Shreddermobile, and more. In addition, T-Machines Two-Pack Vehicle Sets will feature ninja-charged decorated vehicles equipped with translucent wheels. The line will include Mikey in Hot Rod and Shredder in ShredTeenage Mutant Ninja Turtles T-Machines Leo in Stealth Bike and Donnie in Service Truck Two-Pack dermobile, Leo in Stealth Bike and Donnie in Service Truck, and more. Kids can also give their T-Machines a powerful boost with the Shell Launcher with Mikey in Party Van. Compatible with all T-Machines, kids can load their vehicles, pull back on the shell, and watch their vehicles race into action. Basic Playsets, including the T-Machines Garage & Lair playset, the Sewer Gas Station playset, and the Turtles Revenge playset, will be available this spring for kids ages 3 and up. The Basic Playsets include everything kids need to build cities for their T-Machines vehicles to battle in, while the Turtles Revenge Playset lets kids race down the track in their T-Machines vehicles and defeat Shredder.
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Aurora Highlights My Little Pony Collection
Aurora’s My Little Pony collection will feature new ponies with styled, brushable hair with mylar highlights that make them sparkle. There will be 12 new additions in the 6.5-inch style, and new 13-inch styles. Raggedy Ann celebrates her 100th birthday this year, and to celebrate, Aurora’s Raggedy Ann and Raggedy Andy dolls will include a limited-edition 100th Anniversary hangtag. New special 2015 anniversary edition dolls will also be introduced throughout the year.
Jazwares Gets Back in the Sandbox for Terraria
Jazwares will launch its second sandbox gaming toy line with characters from the video game Terraria. Fans will now have the chance to take the virtual fun into the real world with this toy line, which includes figures, role-play products, play sets, plush, and electronics, including the Night’s Edge sword and the Biome multi-level play set with an exclusive figure. Jazwares’ launch of a Peppa Pig toy line will encourage imagination and creativity as Peppa will have an accessory, plush, or play set for every occasion. The toy line includes Peppa’s Family Campervan, which includes two Peppa figures, a grill, and a table. Blueprints Paper Craft lets kids discover ways to take what they see in the virtual world and physically re-create it in the real world. The line includes figures, vehicles, and entire play environments made from paper. Licensed Paper Craft will be available with styles including Barbie, Teenage Mutant Ninja Turtles, Marvel, Star Wars, and SpongeBob SquarePants. Jazwares will launch new Teen Titans Go! toys, including a new line of 5-inch articulated figures featuring Nightwing and Speedy. The line will also expand in plush, figures, play sets, and role play to enhance game play and imagination. Terraria Witch Doctor
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My Little Pony collection
Evolution Offers More Dumb Ways to Die
Evolution LLC represents the PSA campaign Dumb Ways to Die, originally conceived as a public train safety campaign featuring animated characters, which has since evolved into a YouTube channel and two apps. Evolution, which is spearheading a multi-category licensing and retailing campaign for Dumb Ways to Die, has licensed the brand to Commonwealth Toy & Novelty Co. for plush and vinyl figures; Underground Toys for toys and novelty items; and The Five Mile Press for a line of storybooks, activity books, novelty books, and stationery. At Toy Fair, Commonwealth Toy & Novelty Co. will exhibit plush featuring the Dumb Ways to Die characters, which serve as warnings of what never to do, such as getting toast out of the toaster with a fork, keeping a rattlesnake as a pet, or dressing up like a moose during hunting season. The line includes 5- and 8-inch plush, as well as a 12-inch dancing plush—all of which feature the Dumb Ways to Die theme song—and a 3.5-inch clip-on plush.
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Blue Orange Games Spots a Snowman
Blue Orange Games will expand its line of Spot it! games to include Spot it! Disney Frozen Olaf Numbers & Shapes. Designed for two to six players ages 3 and up, kids can match Olaf’s favorite parts of summer among numbers from 0 to 9 and familiar shapes. This fast-paced card game is a rewarding way for kids to practice basic learning skills. There is only one match between any two cards, so players must race to be the first to spot it.
PPW Toys Bakes Bad
PPW Toys’ latest addition to the PopTaters line, Mr. Potato Head Fries-enberg, portrays the likeness of Walter White, aka Heisenberg from AMC’s Breaking Bad, in spud form. Under license by Hasbro and Sony Pictures Consumer Products, Fries-enberg’s parts and pieces are removable and interchangeable, just like the classic Mr. Potato Head. The parts can be mixed and matched with any of PPW’s other PopTaters. This collectible item will be available in the spring at specialty online and brick-and-mortar retailers.
Gund Offers Cuddly Licensed Plush
Gund will introduce its new line of licensed, surface-washable plush for kids ages 1 and up. New to Gund’s licenses, Pusheen, the chubby gray tabby cat, will be transformed into a soft and cuddly 12-inch plush. The Internet sensation has millions of followers online and is known to love cuddles, snacks, and dress-up. Gund’s plush version brings the web comic to life in her classic pose and its washable surface makes for quick and easy cleaning. Superhero fans can save the world with DC Comics Malone as Batman. This 12-inch plush bear comes dressed as Batman, complete with the iconic bat symbol and a cape. Straight from the movie Kiki’s Delivery Service, Gund will introduce a 6-inch seated Jiji plush based on the film’s magical cat. Staying true to the animated character, the plush will have Jiji’s iconic red bow and is sure to be a loyal companion to Studio Ghibli fans. From the illustrated world of Beatrix Potter, Gund will present its Classic Beatrix Potter Peter Rabbit plush. This 9-inch plush features Peter’s signature blue coat and other details directly from the original illustrations from Mr. McGregor’s The Tale of Peter Rabbit. Gund’s Grumpy Cat Scarf Hat is designed to fit most kids, teens, and adults. The Grumpy Cat Scarf Hat is a soft plush hat with embroidered details that re-create the sassy cat’s signature cranky expression. Gund will also introduce collectible Beanbag Pals to its line of Sesame Street products with its Sesame Street Elmo Beanbag Pal. This soft, 3-inch Elmo features embroidered character details and can be squeezed, stacked, tossed, thrown, and more. Safe for kids ages 1 and up, the surface is washable and there are a variety of favorite characters available for kids to collect. DC Comics Malone as Batman
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Hot Shots
Q&A WITH
SONY PICTURES CONSUMER PRODUCTS
The Licensing Book talks with Sony Pictures Consumer Products’ (SPCP) Gregory Economos, SVP, Global Consumer Products about the company’s licensing strategy moving into 2015. What were some of SPCP’s most successful programs in 2014? 2014 marked the 30th anniversary of the Ghostbusters franchise. To celebrate, we created a program that started with a traveling art show in partnership with Gallery 1988, followed by a very successful limited engagement theatrical re-release of the original 1984 film re-mastered in 4K, a delicious collaboration with Krispy Kreme doughnuts, the release of Blu-ray anniversary editions of both films and vinyl LPs with the soundtrack, and the launch of a thriving merchandise line to round out the program. Classic merchandise is also available. Breaking Bad was another major highlight of 2014. Driven by record-breaking ratings and fueled by social media, themed merchandise also experienced record sales in spite of the series ending. We are now gearing up to support the launch of its much-anticipated
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sequel Better Call Saul, premiering February 8 on AMC, with a selective licensing assortment that will help graduate fans into this new show. Last but not least, last Christmas we released an exclusive line with Target inspired by Annie. In this line, 25 pieces of fashion apparel and accessories were created, including the iconic red dress. We took a little bit of a different take on traditional licensing. We weren’t just using images from the movie on apparel. We worked with the movie’s costume designer, Renée Ehrlich Kalfus, who created a unique line of inspired-by fashion apparel for teens and tween girls.
How do you decide which properties will create successful consumer products programs? There is no rule of thumb or set formula. We make decisions based on a combination of strategy, gut experience, and the group’s collective thinking. We start by reading both TV and film scripts, and then we focus on the properties we feel will have the most engagement and will be the most merchandisable based on demographics, trends, and retail opportunities.
How do you select the best licensees for each property? We always look to partner with licensees that have developed an affinity for the property, believe in the brand, and can translate that passion into relevant product. We also look for companies that we can build long-term relationships with and that are nimble enough to react quickly based on changing opportunities and the highly competitive landscape.
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How do you partner with your licensees on go-tomarket strategies? Our licensees have an important place at our go-tomarket discussions. We always look at the process as a collaborative one, where they hear strategy and opportunity from us and then provide advice based on their expertise.
How do you work with retailers to drive strategy, reach consumers, and activate properties? Retail is an important component of our activation strategy. Once we have determined the brand’s DNA (positioning, target demographic, and product opportunities), we look at retail very carefully to evaluate the best way to reach fans and convert them into consumers. With the proliferation of e-commerce, mobile, and social media, this is becoming a very interesting space. On the one hand, retailers are more demanding in their space allocations and expectations. On the other, they are more focused and assertive in aligning all their communication tools to help create increased awareness for a particular property.
How do your considerations vary when creating a new consumer products program for a retro or evergreen property versus a new property? Consumers are more and more sophisticated every day, and know exactly what they want and where to find it at the lowest cost. Brands have to be assertive and ensure they can deliver that value and special element to meet consumers’ expectations. Finally, international expansion is definitely an important initiative. This alone brings a whole set of challenges and complicated factors, such as a very fragmented retail space; different cultural influences; and local laws regarding product integrity, customs, retail finance, and marketing and advertising, which will limit having a unified approach and execution.
What can we expect from SPCP in 2015 and beyond? We have an exciting slate of films and TV shows, starting with Pixels (July 24), in which our world gets invaded by iconic ’80s video games—Pac-Man, Donkey Kong, Centipide, and Q*bert, among others—that wreak havoc. A team of Arcaders is enlisted to defeat the aliens
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and save the planet. Following in the slate is Hotel Transylvania 2 (September), the second installment to the popular franchise. Director Gendy Tartakovsky returns to bring us the next adventure from Drac, Mavis, Frank, and friends. Simon & Schuster’s children’s division will publish a series of storybook formats. Halloween décor, softlines, bakery, giftware, and party goods round out the merchandisable categories. Moving into 2016, we are excited for the April 2016 release of Goosebumps, the classic Scholastic property based on the best-selling book series written by R.L. Stine that sold more than 400 massmarket books globally; and for Smurfs, which will be completely CGI-animated and directed by Kelly Asbury. This new Smurfs movie is an origin story featuring the popular classic characters from Peyo. Both of these properties will create licensing opportunities in all major categories. On the TV side, we have Better Call Saul, which is set six years before Saul Goodman (Bob Odenkirk) became Walter White ‘s (Bryan Cranston) lawyer. Blacklist, on NBC, continues to enjoy strong ratings and will benefit from a publishing line and potential mobile opportunities. We also have alternatives in the interactive category (slot machines, mobile games, and lottery) for Jeopardy and Wheel of Fortune. Other titles from Sony’s TV division include Ron Moore’s Outlander, and Powers, which is based on Brian Bendis’ comic books series launching exclusively on Sony’s PlayStation Network. ••••
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Asa Takes Kids on a Frozen Adventure
Mobo Tot Disney Frozen, from Asa Products, is an ergonomically designed three-wheeled cruiser designed for toddlers ages 2 to 5. Its adjustable frame grows with kids and lasts for years. The Mobo Tot provides a safe and durable ride that makes outdoor adventures fun with kids’ favorite characters.
Hasbro’s Looking Marvel-ous
Mr. Potato Head Marvel Mixable, Mashable Heroes, from Hasbro, allow kids to mix and match pieces from Marvel characters, including Thor, Iron Man, Captain America, Spider-Man, and more. Each 2-inch Mr. Potato Head figure also includes one or two sets of three-piece superhero costumes. Marvel’s Avengers: Age Of Ultron Iron Man Arc FX Gloves feature a light-up repulsor in the palm of one glove. Kids can raise their hand to activate lights and blasting sound effects from the articulated glove. The Marvel’s Avengers: Age Of Ultron Hulk Gamma Grip Fists are flexing foam hands that let kids grip and grab. Marvel’s Ultimate Spider-Man: Web Warriors Web Slingers 6inch Action Figure assortment includes Spider-Man, Agent Venom, Spider-Man 2099, and more. Kids can target the bad guys and take them down by launching high-flying webs at the villains. Each figure includes two webs as well as a villain target. Marvel’s Ultimate Spider-Man: Web Warriors Web Slingers Racer assortment features Spider-Man with an ATV, Agent Venom with a motorcycle, and more. Designed for kids ages 4 and up, two webs can launch from each vehicle racer. Hasbro will also introduce a new line of Jurassic World Hero Mashers toys featuring dinos from the upcoming film. Jurassic World Hero Mashers let kids collect their favorite dinosaurs and mix and match the interchangeable pieces to create new dinosaurs. The line includes a Dino Assortment, a Hybrid Dino Assortment, and a Tyrannosaurus Rex Pack. Jurassic World Hero Masher
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The Bridge Direct Parties with Kids’ Favorites
Strawberry Shortcake will celebrate her birthday this year with the Strawberry Shortcake Classic Rag Doll 35th Anniversary Edition, from The Bridge Direct. This reproduction of the original rag doll from the 1980s includes all the authentic details from her hat to her shoes, including her berry sweet strawberry scent. Kids can join Strawberry Shortcake and her cat Custard for a party in the Strawberry Shortcake’s House Playset. Designed for kids ages 3 and up, this set features an exclusive 6-inch Strawberry Shortcake doll and a Custard figure that are ready to decorate the strawberry-shaped house for a celebration. For the first time, licensed characters will join The Bridge Direct’s Inkoos draw-wash-redo plush line. This spring, kids will be able to creatively design the twosided surface of characters including Minions Bob and Stuart, Disney Princesses Ariel and Rapunzel, and Disney Frozen’s Elsa, Anna, and Olaf. The Color ’n Create Inkoos come with metallic threading and stick-on gems for extra sparkle. The C3 WWE StackDown SmackDown Ring Playset offers young WWE fans a new buildable battle ring with more than 450 pieces, including three C3 figures.
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Imperial Toy Has Jedi Bubble Tricks to Share
Star Wars Bubble Bottles, from Imperial Toy, feature Yoda, Darth Vader, and R2-D2. Each themed bubble toy comes with 8 ounces of solution.
Fashion Angels Par tners Up Fashion Angels will expand its product offerings for licensed brands, including Monster High, Ever After High, Barbie, My Little Pony, Equestria Girls, Littlest Pet Shop, Hello Kitty, and Project Runway. Fashion Angels will also welcome Mattel brand American Girl to its licensed product line for next year.
Fashion Angels American Girl products
Neat-Oh! Gets Organized with Kids’ Favorite Characters
The Hot Wheels Full Size Custom Car Kit with Stickers, from Neat-Oh! International LLC, is a sporty car for vehicle lovers. Measuring almost 4 feet long when assembled, it is designed so kids can sit inside. The cars are sturdy, fully printed cardboard that include repositionable structures so kids can customize them. The trunk opens so kids can store their cars inside. When playtime is over, it collapses flat for easy storage. Kids can decorate Barbie’s Dream House with repositionable Barbie Full Size Play House Stickers. The house features balconies, a threshold doorway with a ramp, and interior platforms. When playtime is over, it collapses flat to store easily. The Star Wars Storage Space Case fits into any standard modular square unit. This case features a durable design with Star Wars graphics and holds up to 3,000 bricks, figures, and other toys and accessories. The Star Wars Vehicles Millennium Falcon ZipBin Race Case stores cars safely when traveling to and from the track. This Millenium Falcon-shaped case unzips into a two-lane raceway and holds more than 100 Star Wars Vehicles and other die-cast cars. The Star Wars Play Mat is an easy-to-clean, EVA foam play mat, for use with Star Wars vehicles and die-cast cars. When play is done, kids can roll it up or fold it and stow it away. The Star Wars Vehicle Tin stores 18 vehicles in a sturdy tin with a latch. It’s lightweight and features a handle for easy portability. Barbie Full Size Play House Stickers
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Day 6 Smartens Up Sports Toys
Day 6 Sports Group launches Backyard Sports, a line of smart sports toys that combine mobile games with physical components to get kids active. The Sonic Boom Bat has an oversized Sonic Boom chamber for both a bigger bat sweet spot and booming sound effects. Kids can swing the bat to get codes, which they can scan to unlock digital game power-ups in the Backyard Sports Baseball 2015 mobile game. Trick Pitch Ball has a unique design that allows big curves, knuckleballs, and floaters, while the three-sided Triple Threat Bat offers three different ways to hit. Kids can scan the code on both the ball and the bat to unlock digital game power-ups in the Backyard Sports Baseball 2015 mobile game. The Sonic Boom Bat, the Trick Pitch Ball, and the Triple Threat Bat are all licensed by Major League Baseball. The Mega Morph Super Hoop has a motorized rim that changes sizes during play. Licensed with the National Basketball Association (NBA), it features a game announcer and sound effects, an electronic scoreboard, and a shot clock that tests shooting skills. The hoop’s Action Track technology lets kids make buckets to get codes, and then scan them to unlock digital game power-ups in the Backyard Sports NBA Basketball 2015 mobile game. Launching this year, the Malibu Sports & Recreation brand will feature limited-edition Throne flying discs, which will launch with wrap-around graphics of DC Comics characters. Trick Pitch Ball
NKOK Rumbles into Toy Fair
Adding to its WWE line, NKOK will introduce new Rumble Vans, Die-Cast Tour Buses, and a John Cena ATV for wrestling fans. Kids can choose from John Cena and Randy Orton-inspired Rumble Vans that will be available in both battery-operated and R/C versions. Each van will feature lights and sound effects directly from the WWE superstars. In addition, each star’s Die-Cast Tour Bus will feature a hidden door that leads to storage space for an included WWE Die-Cast Racecar. Rounding out the line will be the John Cena ATV R/C, which lets kids control the four-by-four with John Cena riding it. For SpongeBob SquarePants, NKOK will bring fans its battery-powered SpongeBob Hot Rod Boat Race Set, allowing kids to race head-to-head throughout Bikini Bottom on the 8-foot track. The set features a lap counter and jellyfish details, and includes two vehicles, two controllers, and 16 track pieces. NKOK will add two new R/C vehicles to its Mean Machine line: the Rock Crawler and the Extreme Terrain. Both 4x4s are large and aggressive and are available in a variety of body styles. The Rock Crawler will be available with a 1970 Ford Bronco body and a 2015 Jeep Wrangler body. The Extreme Terrain will be available in a 2015 Jeep Wrangler, a 2015 Ford F-150, a Ford F-150 Raptor, and a Dodge RAM 2500 Power Wagon body. In partnership with RealTree, NKOK will release its Ford F-150 SVT Raptor R/C truck, which features full suspension, a high torque motor, and full-functioning controls. The truck is wrapped in an authentic RealTree snow camouflage graphic. Lastly, NKOK’s 22-inch long R/C Tyrannosaurus Rex will roar into the Discovery Kids line with lights and sound effects. The T-Rex features realistic teeth and skin, has an animated neck and jaw, and makes stomping noises as he walks.
John Cena ATV
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Winter 2015
Just Play Takes Care of Doc McStuffins
Doc McStuffins Take Care of Me Lambie, from Just Play, is an interactive plush that comes to life with realistic movements. Lambie talks and sings as her eyes, ears, mouth, and body move along to show how she’s feeling. The plush features more than 50 interactive responses that are activated through three trigger points on her wrist, tummy, and heart. Lambie also comes with doctor’s tools, such as a stethoscope, a thermometer, an otoscope, and sticker bandages for a thorough checkup. Just Play’s new Care Bears Sing-a-longs interact with each other and can talk, sing, and dance in sync to three different songs. They sing solo, as a duet, or in a group. Kids can start the fun by squeezing their hands or giving them a hug. The Sing-a-longs are available in Cheer Bear, Grumpy Bear, Funshine Bear, and Share Bear styles. Doc McStuffins Take Care of Me Lambie Kids can squeeze Peanuts Happy Dance Snoopy’s hand and the plush boogies to the tune of “Linus and Lucy.” If kids give Snoopy a kiss, he responds with a return kiss, a laugh, a pout, or a raspberry sound.
Jakks Pacific Expands Frozen Line, Introduces R/C Products
Jakks Pacific ramps up its Disney Frozen line with the Disney Frozen Musical Winter Coach. In ride-on mode, kids can hold the easy grip handle, which plays the song “Let It Go.” With the touch of a button, the handle releases from the locked position into wagon mode so kids can tow their favorite toys in the under-seat storage area. Sing-a-Long Elsa is a perfect duet partner for kids ages 3 and up. Kids can pass the microphone back and forth and sing the fulllength song “Let It Go” together while they watch Elsa’s necklace and dress light up. Jakks will also feature Disney Frozen Anna and Elsa Toddler Dolls, both dressed in their iconic outfits from the film. Each doll’s Royal Reflection eyes shine and shimmer. Designed for kids ages 3 and up, the Sofia the First Toddler Doll is dressed in her signature lavender gown with beaded accents and sparkle detail, along with her amulet and tiara. Little princesses can also dress up with Sofia with the Sofia the First Royal Signature Dress. The lavender dress features lace and sequins, a peplum gown, and a Sofia cameo at the neckline. They can also add the Sofia the First Musical Melody Amulet that plays the Sofia the First theme song and glows softly. With the 9-inch Disney Fairies Fashion Twist Dolls, kids can transform the Disney Fairies from daytime fashion to sparkle nighttime fashion with a simple twist. They are available in Tink, Rosetta, and Silvermist styles. RC Hulk Smash is a fully functional R/C vehicle that lets kids go through obstacles or knock them over with Hulk’s swinging arms. Hulk spins, flips, smashes, does wheelies, and self-rights when he turns over. Designed for kids ages 4 and up, this vehicle also features a variety of Hulk phrases and sounds. Kids can race around with the new Mario Kart RC Racer. The Racer can rotate its wheels while in motion or standing still, and drive in anti-gravity mode, just like in the Mario Kart 8 game. The Mario Kart RC Racer can drift around corners and perform special tricks from up to 100 feet away. Sofia the First Royal Signature Dress
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Scholastic Partners for Toys and Science Kits
Scholastic Media and Young Scientists Club have new science kits based on Clifford the Big Red Dog, including Clifford Water Science, in which Emily Elizabeth explains simple water experiments involving icebergs, phases of water, making rain, colored celery, chromatography, and more. The set equipment includes a lab tray, a measuring cup, and test tubes. In The Magic School Bus: Science Explosion, suitable for kids ages 5 and up, the first player to the finish line in this tabletop game gets to make the volcano erupt. There are two games in each box: a matching game featuring science-based topic cards, and a memory and strategy skills game. Along with a laminated, two-sided board, Science Explosion includes a volcano, a bowl, colored measuring cups, game cards, and more. Scholastic has partnered with Douglas for Clifford the Big Red Dog plush. The line includes Sitting Clifford and Standing Clifford in multiple sizes; a 30-inch Extra Large Lying Down Clifford; a 22-inch Large Floppy Clifford; and an 11-inch Small Lying Down Clifford. Douglas will also have a Clifford baby line that includes Sshlumpie, Snuggler, and Hand Puppets. New items in University Games’ Briarpatch I Spy line include the I Spy Spooky Mansion Game, in which players spot and collect objects located throughout the title mansion. The first to collect an object from every room and escape wins. With the I Spy Water Maze Game, players follow the riddles and guide creepy crawly insects through a durable, liquid-filled magnifying glass maze by tilting and turning it.
DreamWorks Animation Focuses on Big Robots
DreamWorks Animation will showcase products based on both new and classic properties, with an emphasis on Dinotrux, Voltron, and the Dragons franchise. To mark the 30th anniversary of Voltron, there will be several waves of street- and sound-themed collaborations and limited-edition products. New apparel, toys, watches, footwear, books, and electronics will launch this spring. In partnership with Netflix, DreamWorks Animation will bulldoze back to a prehistoric world with Dinotrux, an original program based on Chris Gall’s book series. Beginning this spring, Dinotrux is set in a world of lavaflowing volcanoes and lush forests, with hybrid dinosaur-construction characters that are set to build and battle over three seasons. The property’s heroes include Ty, a massive Tyrannosaurus Trux, and his buddy Revvit, a razor-sharp Reptool. Other characters include oversized creatures with Home names such as Scraptors and Tow-a-Constrictors. DreamWorks will also show off Home, which arrives in theaters in March. Home revolves around Oh, a loveable misfit from another planet, who lands on Earth and forms an unlikely friendship with Tip, an adventurous girl on a quest of her own. Among DreamWorks’ other properties, the studio will showcase the TV show Dragons, which will debut all-new seasons on Netflix this year. There will also be an emphasis on Felix the Cat for fashion.
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Licensing 101
Sweet Deal Teaching Students About the Benefits of Licensing and How to Make a Wise Selection by Jim Sachs, partner at Harris-Sachs LLC Licensing had the privilege this past July to speak at the Lee Iacocca Global Village at Lehigh University in Pennsylvania. I am a member of the executive speaker program. “The Village” has been in existence for 18 years and was founded by business leader and Lehigh alumnus Lee Iacocca to develop global business leaders for the 21st century. Executives and students totaled 89 attendees from 42 countries. Those selected for the program experience a multi-faceted approached addressing many different business disciplines, but, ultimately, the focus is on entrepreneurship and problem solving. I was the lone I gave them my pitch about the licensing executive and content of my lecture, waved a actually the first to lecture on the subject in cookie in the air, and told them the program. We conthat ‘this is what licensing is all vened in a large about and I have one for each of amphitheater-type lecyou.’ I sat back down and one of ture hall. I sat on the stage with four other the other presenters leaned over lecturers from major and whispered, ‘That’s not fair.’” companies such as Capitol Blue Cross and Siemens. All “suits” and me—no socks, no tie; sport coat and khakis. Boy, what a great representative of the licensing industry I was! We were introduced and I realized quickly that we each had five minutes to pitch our lectures. It was a competition to interest the
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group of 89 people (who had no concept of licensing) to attend our “classes.” Just by dumb luck (and I listened), my daughter suggested I order some cookie dough from a client of ours, bake them up, and apply licensed edible images to them illustrating what form a licensed product might take. I gave them my pitch about the content of my lecture, waved a cookie in the air, and told them that “this is what licensing is all about and I have one for each of you.” I sat back down and one of the other presenters leaned over and whispered, “That’s not fair.” It worked—I packed in a total of 60 attendees out of the 89. Cookies are a huge motivator! My attendees were from various countries worldwide. Some were graduate students and some were small business owners. Many were from far flung rural communities. To say that this was an eyeopener for me is a profound understatement. I had the wonderful experience of dealing with a total “clean slate” mentality. There were no preconceived notions regarding the licensing industry, especially as it relates to consumer products. The idea of applying a license to a product as an incentive to drive consumer sales, shut out the competition, and take market share was new. As I got into my PowerPoint presentation, I realized that most of my “students” didn't have a clue. There were lots of blank expressions. I overcame this by pointing out that the jerseys they wore during the World Cup to support their
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Intellectual property laws in some of these countries were almost non-existent. There was very little policing of infringers. As a matter of fact, it is an accepted practice at the local level to ‘rip off’ brands.”
country’s team were all licensed apparel. They thought the jerseys were actually manufactured and distributed by the teams themselves. I explained the apparel manufacturers’ entire process that is necessary to secure the team brands. Light bulbs went on. We were on a roll! We discussed licensing and how it is utilized to not only support existing products in their respective markets, but also to develop totally new product lines and channels of distribution. We discussed, from beginning to end, the evolution of a licensed product line right through distribution. A Nigerian distributor wanted to know what American licensed products he should import for his market, so we discussed his specific demographics, economics in Nigeria, and a quick marketing plan. A student from Columbia was working on a project to provide dehydrated foods to poor inner city residents. What brand should she apply that her targeted market, the barrios, would recognize, have faith in, and consume? Nutrition and affordability were of utmost importance. How do you do this and still maintain decent margins just to support the effort? I asked her about charities in her area and cause-related licensing. We discussed protection and infringement. Many of the business owners wanted to know how a license would be protected once it had been secured. After discussing this, most of them realized that because of the demographics and geographical locations, there was little protection. Intellectual
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property laws in some of these countries were almost non-existent. There was very little policing of infringers. As a matter of fact, it is an accepted practice at the local level to “rip off” brands. My answer was to develop a plan to be first to market, quickly solidify strong distribution, be prepared to deal with a price war from infringers, and hope the licensors would somehow provide some protection. Although most of the attendees were interested in American brands, I asked them about their individual countries’ popular entertainment, sports, and consumer brands. This lead to a discussion of actually matching indigenous products and properties. What’s the take-away from an experience like this? It allowed me to meet people from all over the world who wanted to learn about licensing. Isn’t licensing all about being creative and generating excitement? It sure is! I will be back at the Global Village this July with another group. Can’t wait! •••• Jim Sachs has 30 years of licensing business experience and has served as vice president of sales, marketing, and licensing at Chein Industries. He spent the past 10 years in partnership with Steve Harris at Harris-Sachs LLC Licensing.
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Licensing & Media
Let’s Hear It for the Boy Next Door!
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by Stuart Fischer
hen one thinks of the comic book and the personalities of people he had known. character Archie, one envisions a The resulting character seemed to glide through bright-eyed teenager who has a conlife without taking it too seriously. Goldwater stant smile on his face, as if he does not have a also helped create a large cast of supporting charcare in the world. That might be true of this wonacters, whose stories took place in the suburb of derful fictional character, but the company beRiverdale, which is filled with ordinary folks hind him is a hard-working, innovative force: who—at least most of the time—mingle well. Archie Comic Publications. Archie’s creators told all manner of comic Founded in 1939 by Maurice Coyne, Louis book stories sprinkled with comedic situations. Silberkleit, and John L. Goldwater, the name of In addition to Archie, the cast has long included the company was first MLJ Publications. It was Jughead Jones, Archie's best friend, who tends to changed a few years later to Archie Comic Pubbe a bit slow on the draw, but can always be lications as a salute to the character that became counted on as a loyal pal; Veronica Lodge, the its greatest success. beautiful girl next door who wants to be Archie's MLJ began publishing various titles during significant other; Betty Cooper, who is a little the beginning of the comic book industry, most more down-to-earth than Veronica, and who alBetty & Veronica Friends Double Digest of them humor, although there were also a few ways has her eye on Archie; Reggie Mantle, an adventure series. The company’s first comic was Blue Ribbon Comics, egotistical pretty boy, who is a competitor of Archie's at most things, published in November 1939, followed shortly by Pep Comics, which but will never be as popular due to his arrogance; and others who have began in January 1940 and introduced The Shield, a patriotic hero been introduced over the years. who resembled Marvel’s Captain America, who started appearing The comic book revolves around the gang's zany misadventures, one year later. but their exploits seem very down-to-earth since they are a reflection of In Pep Comics issue no. 22, published in December 1941, the char- America's youth: Archie and the gang are often coping with school and acter of Archie Andrews made his first appearance. The world parents, but they also deal with peer group pressure and interpersonal differences. Still, the characters always come around at the end. would never be the same. In addition to the teens at Riverdale, Archie Comics has created Created by Goldwater—who was the publisher and editor of MLJ at the time—and written and drawn by Vic Bloom and Bob Montana, re- other characters that have become very popular and are still around spectively, Archie drew upon Goldwater’s own early life experiences today. One is Sabrina the Teenage Witch, created by George Gladir and
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Dan DeCarlo in the early 1960s. The property not only conquered the animation industry during the late 1960s and early ’70s, but also became a very successful live-action prime time sitcom, which was produced by Viacom and appeared on two different networks in the 1990s and early 2000s. Melissa Joan Hart portrayed the title character, and this version of Sabrina was even spun off into its own television cartoon in 1999. Another popular Archie Comics creation is Josie and the Pussycats, a rock ’n roll group created by DeCarlo in 1963. The characters first appeared in Archie's Gals 'N' Pals, and produced not only a popular comic book series, but also a few Saturday morning cartoon shows from 1970 to 1974. A live-action motion picture was produced in 2001 by MGM and Universal.
vertised the wedding of Kevin and his male partner on its cover, the conservative group One Million Moms threatened Toys “R” Us—which displays Archie Comics at checkout counters— with a boycott. The toy retailer did not issue any public response, but that particular issue of Life with Archie sold out its print run. Next year coincides with the 75th anniversary of Archie’s introduction, and will bring even more dramatic changes as the Archie comic book series is re-launched with a more contemporary attitude and re-imagined characters. There are also plans for a new TV series on Fox, Riverdale, from Berlanti Productions in association with Warner Bros. Television. Intended to be a Archie’s Pal Kevin Keller one-hour scripted drama, Riverdale would offer a subversive take on the Archie Comics characters and smalltown life. Archie: Forever Young? For the forseeable future, Archie will continue to In more recent years, Archie Comics has attempted to introappear monthly in both comics and digest form, duce modern, and even post-modern, sensibilities in order to while in terms of licensed products, the increase the brand’s appeal among contemporary audicharacter has always been a fixture in ences. Life with Archie, which debuted in 2010, gave toy or stationery store windows. To readers a glimpse into Archie and his friends’ lives date, Mattel has released Barbie post-high school and college, and this July and dolls inspired by Veronica and August, the last two issues of the series, Life Betty, as well as Hot Wheels with Archie nos. 36 and 37, will center on vehicles featuring characters Archie’s tragic death and its aftermath. from the comics. Rubie’s Not surprisingly, news of the charCostume Co. has vinyl acter’s fate was widely covered by masks of Archie and Jugthe media. head; costume outfits of In discussing the modernizing of Archie, Jughead, Betty, and Archie Comics, it would be remiss to not Veronica; and of course, a mention one new character who entered the Josie and the Pussycats costume preview art for the Archie re-launch Archie universe a few short years ago: Kevin Keller, featuring attached ears and a tail. •••• who is gay—a revelation that was skillfully introduced when he made his debut in Veronica issue no. 202, published in September 2010. The first openly gay character to ever appear in an Archie comic book, he beStuart Fischer has worked at Universal Studios, where he helped develop came popular enough that Archie Comics awarded him his own title beginning in 2012. Created by comic book writer and artist Dan Par- shows to be sold to networks, as well as Hanna-Barbera Productions, where he ent, Kevin was intended to show how Riverdale is a community where developed shows to be sold to the networks and the first-run syndication marpeople accept each other and treat one another with respect, even if ket. Fischer has written books including Kids’ TV: The First 25 Years and The Hanna-Barbera Story: The Life and Times of TV’s Greatest Anithey are different. Most gay organizations supported the character, while other groups mation Studio, as well as magazine and trade journal articles. He has also were less enthused: When a January 2012 issue of Life with Archie ad- created his own comic book, The Man-O-Saurs.
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Marketing Memo
LEGENDARY Logo DESIGN WHAT A LOGO CAN DO FOR YOUR BRAND by Dan Antonelli, CEO and creative director, Graphic D-Signs Inc.
Q
uick, describe your favorite company—where do you start? Maybe it’s what the company does or what product it sells. Maybe it’s where its headquarters are located. More likely, you might mention a memorable ad it aired on TV, the radio, or online. But most likely during your description, you mention the company logo. You describe it in detail, from the colors to the imagery. And just like that, buzz for that brand continues to grow. A logo’s true importance is a time-honored means of communicating a lot in a matter of seconds. Think about times you judged the quality of a restaurant’s food by the way its storefront looked, or the workmanship of a service company by the way its service vehicle looked. The same concept holds true for companies. People judge books by their covers, and people judge companies by the quality of their logos. With this in mind, you need to take decisive action. Are your core values truly communicated by the logo currently in use? Is there any doubt left about the quality of the services provided? Most importantly, is it clear what exactly your business does? If done well, a logo can reassure current customers, attract future buyers, and work effectively in every area the logo exists, from massive billboards to humble business cards.
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However, put aside designs and tactics used by huge companies such as Nike, Red Bull, and Google, which have decades of brand awareness and a seemingly limitless advertising budget. Make calculated moves to get the most out of your marketing. The most important change you can make is with your company branding, and that begins with the logo. The logo serves as a foundation for all other executions of your brand. From websites to brochures, the logo needs to communicate your message in an instant—a few nanoseconds, in fact—and resonate with the right audience. This is something nearly every business logo used today can benefit from, yet it’s also something few companies employ. Think of the logo design as a signature for the value a business provides. Strive to develop a logo that is professional, unique, appropriate for your industry, and seriously memorable. Some businesses either forego a professional design, or elect to not even have a logo at all. This is a great thing for you, as it widens the opportunities for your company. Don’t waste the opportunity to gain more equity from customers and more bang for your marketing buck. Make the choice to invest in a professional logo design, and start enjoying the return on investment that your brand deserves. •••• Dan Antonelli is the CEO and creative director of Graphic D-Signs Inc., and the author of Building A Big Small Business Brand. A recognized leader in the small business and start-up advertising world, Graphic D-Signs Inc. has created more than 1,000 unique brands for clients worldwide.
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License Management
Getting an Option or License Back
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by Derreck Lennox, Margin Doctors Business & Management Consultants here are many reasons that one may want to get his or her option or license back from a licensee. Some may be based on how a license is being treated, some based on other opportunities that presented themselves, and others based on creative control. Regardless of the reasons, there are a number of methods that can be used to get an option or license back. However, the methods available will depend greatly on: 1. The value of the property 2. The amount of investment made by the option holder/licensee 3. The relationship between the parties 4. The relative size of the parties 5. The quality of the agreement and the related documents
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‘He who fails to plan, plans to fail’ is a term spoken by many strategists and planners, and it is true here as well.”
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VALUE
When a property is of high value, the only truly effective means are legal ones. Breach of contract, misuse, and other contractural failings have to form the basis—and the process can be expensive. This situation may result in a long delay, high costs, and a reduction in the value of the property if more time is spent on
getting the rights back than on developing and fully commercializing the property. However, if the property has little value, isn’t widely known, or has a limited or depleted fan base, it may only require a few calls or emails to get to the stage where the licensee is prepared to sign back a release on the option or license.
INVESTMENT OF LICENSEE
If a licensee has spent large sums of money, getting the rights back without a legal battle—or at least a significant negotiation of management time—may be difficult. Depending on the party, if the option holder or licensee has invested a lot of time, effort, and money, he may not want to part with the rights, and will hold out until he can reclaim lost or sunk costs. If a rights holder has not spent a lot of time or money, however, it may be relatively simple or easy to get the rights back. It is not unheard of for the party who options a property to make a few calls or preliminary pitches in a matter of hours and be willing to return the option almost immediately if they do not believe they can move ahead with the project profitably.
RELATIONSHIP
Some companies develop strong ties with one another through long-term working arrangements,
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past successful license arrangements, and previous working situations. If there is a personal or existing professional relationship in place, it will be easier to work out an arrangement without having increased costs incurred in getting the rights back. Many deals are done on existing relationships and many deals can likewise be undone in the same manner.
ORGANIZATION SIZE
When a small organization extends the rights of its property to a large conglomerate, the only means to get the rights back may be legal. Many people may be involved in decision-making, and as such, will need to be brought in to release the rights. In some cases, the department that does the license deal will be a different one from that which does the rough design work, and different again from the one that pitches or develops the property into merchandise, shows, films, games, etc. Smaller firms will usually be able to make a decision sooner, but even that may not always be the case.
QUALITY OF THE AGREEMENTS
“He who fails to plan, plans to fail” is a term used by many strategists and planners, and it is true here as well. A licensing or option agreement that is well prepared will go a long way to make it easier to get rights back. While there are some standard clauses where rights revert, it may become important to the property owner to work with an entertainment or licensing lawyer who has successfully developed agreements that clearly outline many options and situations where the rights will revert automatically. While it is always of note that documents alone cannot manage the behavior of people, having a well-written agreement that includes various ways that the rights can be returned, reverted, bought back, or called back, can go a long way to ensure that if the situation arises, it can be done easily enough. One of the simplest and often under-looked
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methods is to ask. A quick phone call or meeting can provide a way to simply ask for the rights back and to mutually cancel the agreement. The licensor (the property owner) should candidly explain to the licensee that he is not happy with the arrangement and he wants his license back. If this works, be sure to prepare a written release and have the licensee sign it. Ensuring that an effective relationship is developed is critical in most cases for doing this. It is often a lot easier to ask a friend or well-established relationship for rights back than it is a stranger. Sometimes it’s a legal battle of epic proportions that is based on the wording and interpretation of the intent of a contract and the various laws based on intellectual property; other times is it a politely phrased, “Can I have my option back? I want to do something else with it.” •••• Derrek Lennox is the managing partner of Margin Doctors Business & Management Consultants. He works with the owners of small- and medium-sized businesses to improve their chances of longer-term success. He can be reached at dslennox@margindoctors.com.
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International Licensing
Asian Licensing Conference 2015: Focusing on Global Brands and Local Potential by Reyne Rice, trend hunter and international journalist he Asian region represents a lucrative and fast-moving consumer marketplace, with a thirst for branded merchandise and licensed products. Regional retail sales of merchandised products topped $18.8 billion in 2013, and is expected to grow exponentially in the next decade. At the annual Asian Licensing Conference held this year in Hong Kong, a cast of high-profile, global brand executives shared their licensing strategies and revealed the latest international licensing trends. The conference, held concurrently with the 13th annual HKTDC Hong Kong International Licensing Show, drew tens of thousands of visitors and nearly 300 exhibitors from around the world. The conference program was packed with benchmarking tips and practical advice on how to successfully approach iconic global brands for licensing opportunities. The 30 high-profile industry leaders who served as keynote speakers and panelists provided insights and rich visual examples on how to explore licensing opportunities for their global brands across the Asian marketplace. The speakers gave candid advice for building programs in Asia that would complement their other worldwide licensing ventures. The sheer size of the growing appetite for licensed products in China represents a massive opportunity for brand expansion. In the opening conference session, Global Brands in Asia, Charles Riotto, president of the International Licensing Industry Merchandisers’ Association (LIMA), interviewed industry veterans at 20th Century Fox Consumer Products, representing the entertainment industry, and Procter & Gamble (P&G), focusing on its consumer products brands portfolio.
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PVH Corp. shared insights on its global apparel brands and Lamborghini showcased its iconic luxury automobile brand-licensing program. Throughout the two-day sessions, experts spoke about their successes and failures, providing rich examples and thought-provoking insights for the licensing community in Asia. The multiple breakout session topics on the first day included branded lifestyle licensed products and services, licensing as a key to retail marketing strategies, and brand extensions to fashion. Character and entertainment brands played a significant role in the Play and Learn breakout session, moderated by Kidz Global’s research president, Philippe Guinaudeau. Panelists from Penguin, Random House, and Electronic Arts showcased their brand portfolios and shared examples of their successful licensing programs within Asia. Nitin Kaira, of AI Licensing India Pvt. Ltd., presented an overview of the Indian consumer marketplace highlighting the potential in India’s consumer market, the fastest growing youth marketplace in the world. The second day focused on unlocking the untapped potential in China and providing basic licensing knowledge and advice to attendees. Whether the attendees were newcomers or licensing veterans, there were topics to provide a rich and rewarding conference experience for everyone. •••• Reyne Rice is a seasoned industry professional with 30 years of experience in marketing, researching, and analyzing the toy industry and 15 years of experience as a trend expert, trend hunter, and industry analyst. She can be contacted at reyne@reynerice.com.
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The Voice Reaching Both Trade and Consumers
Contact: Jonathan Samet or Laurie Schacht Adventure Publishing Group 307 7th Avenue, Suite 1601 New York, NY 10001 Tel: 212-575-4510 Fax: 212-575-4521 www.adventurepub.com
Licensing Administration
Licensors Can’t to
AFFORD
Skip a Beat
by Amos Biegun, global head of rights and royalties, Counterpoint Systems, a Vistex company f there’s one thing I’ve learned as the head of a software company for more than two decades, it is that inspiration can strike at the most unusual time. This summer, mine came as I walked through the streets of an underdeveloped city on one of the Caribbean islands during my holiday. What’s ironic is that this place and its people, both beautiful and unsophisticated, seem to be in so many ways stuck in time; and yet, my idea is all about leveraging information and speed in the licensing business, fueled by accelerated cultural progress. I don’t know if it was the severe contrast that set me off or my reading of Flash Boys, the newest book by Michael Lewis, which digs into the high frequency trading scandal that rocked Wall Street, but one thing I know for sure: Information has become the most important tool, and it took my trip away from a life and business surrounded by technology to fully realize it. In Flash Boys, Lewis exposes the truth about folks who profited from laying a $300 million dollar fiber optic cable between the Chicago and New York Stock Exchanges in order to exploit the finite discrepancies (mere milliseconds) between the two markets. This resulted in billions of dollars in profits for a select group of traders. What occurred to me is that if an industry, like the stock market, steeped in its practices since the 18th century, could see outside of its traditions to leverage technology to such an extreme, then so, too, should licensors. The key, of course, is not the technology itself; it’s the data derived from using the technology that brings the greatest value to brand and intellectual property owners. Understanding the drivers that trigger buying patterns and having the tools to forecast sales to avoid
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costly expenses in real time is what will differentiate who will succeed and who will fail in this new economy. Business intelligence tools that allow licensors to make marketing decisions at the same speed by which the technology-savvy consumer operates is a fundamental necessity in today’s economy. Gone are the days of waiting for sales results to plan for next season’s products. Not having to wait to leverage a movie’s release, or having the ability to bundle any combination of properties and products into one package in direct response to consumer demand, is what will accelerate sales for the data-centric licensor. Having the right marketing message, pricing strategy, banner ads, website, and retail shelf space is still important in the licensing industry, but having the right tools to capture the analytics behind sales and activity in real time will inform licensors how to react strategically and quickly. Investing in systems that not only process sales, but also allow licensors to analyze and manipulate data, is the most important spending decision licensors will make next year, and will clearly draw a line between those held back by historical practices •••• and those who leverage historical data. Amos Biegun is the global head of rights and royalties for Counterpoint Systems, a Vistex company, which provides complete contract management solutions—including rights, royalties, and product approvals—to the brand licensing and consumer products, entertainment and media, and music industries. An enterprise application software company, Vistex is the largest supplier of “go to market” solutions, specializing in incentive management and channel marketing solutions and services. Headquartered near Chicago, Vistex employs more than 800 employees and operates out of 13 global locations.
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Of Counsel
COORDINATION ESSENTIAL IN SPORTS LICENSING Licensing 101, Part 75 by James Kipling, Of Counsel
This is the 75th article in a series devoted to the creation and documentation of the licensing relationship and the elements of a typical license agreement.
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ports collectibles enthusiasts insist upon authenticity, and representations of athletes have proven far more marketable in “official” team uniforms than in generic simulations. In North America, one normally thinks of the principal professional team sports as Major League Baseball (MLB), the National Football League (NFL), the National Basketball Association (NBA), and the National Hockey League (NHL). Merchandise pertaining to automobile racing and professional soccer are structured differently, and the focus of this article will be on what’s more mainstream in American sports.
THE PLAYERS
Upon becoming active within a professional sports league, a player is expected to grant authorization to the players’ union for use of his name, likeness, signature, playing statistics, and related information in merchandising whenever a certain minimum number of players’ rights are combined in a single licensed product category. Royalty revenues are then shared by the players who are current members of the respective union. Rights are conveyed by the union in what is called a “group license,” and the minimum number of players varies by sport. A complicating factor is that the stellar players of a particular sport may have the ability to “opt-out” of
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union merchandising representation, and some do so in order to avoid sharing royalties with other players. In such circumstances, the rights will have to be acquired directly through representatives of the individual players. The participation of certain players may be essential to the success of a product category, putting the licensee in a difficult position—Do we try to sign with the players association before the star to persuade him that our program has credibility, or vice versa?
POTENTIAL RETIREES
Players who have retired or are no longer active members of the union present a similar issue—their rights must also be obtained on an individual basis. Inclusion of retired players in an “old timers” segment of a product line will usually require grants of rights for each such player. If a desirable player in a particular sport is near the end of his career, it is important that the licensee/manufacturer understands whether his possible mid-season retirement could simultaneously cancel his rights under a group license. This might end the ability of the licensee to market products bearing his rights through the remainder of the current season. In this case, a supplementary grant of rights from the individual might be needed.
“HIGHLIGHTING” PLAYERS
Another complication arises when products are intended to focus upon individual accomplishments or special events in a player’s career. Perhaps the licensee
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wants to embellish its products that involve a player included in its line who has just won a Most Valuable Player award. In such circumstances, a supplementary “highlight agreement” (and, of course, incremental payment) may be required to supplement the basic group license.
VARIATIONS BY SPORT
Since each of the four major sports has its own rules and conventions for these various issues, it is important that careful research be done before the plan for the product line progresses too far. Questions to ask: For each sport, what is the minimum number of players who must be represented in a group license? What restrictions apply to emphasizing one or more of those players? What are the rules concerning in-season retirement, if an aging player is intended to be included? Have any of the desired players “opted out” of union representation? Of potentially critical importance, does the union have any special rules restricting a manufacturer’s use of separately acquired star “opt-outs” in a product line that also includes a group license?
THE TEAMS
Of course, it is also essential to focus upon league and team rights involved in such licensing structures. If a licensee desires to market products involving a single team in a particular geographic region (usually limited to the natural market of that team), then it may be sufficient to acquire rights directly from the team. However, if the licensee intends to market products nationally or internationally—or products that involve representations of multiple teams—then a grant of rights from the professional league itself will likely be a necessity. Further complicating the issues of player selection, the league may impose a requirement that a minimum number of players from each of the league’s teams be represented in the product line. Of course, this latter requirement can create marketing difficulty, because small market and weaker teams frequently have smaller followings and fewer star players in whom collectors might have interest. It is also important to understand how this requirement may impact the acquisition of player rights. For example, it is possible that requirements of this nature imposed by a league could necessitate acquiring a “group license,” although
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the licensee might otherwise fulfill its marketing objectives with a few star players. Thus the rights acquired through one licensor can impact the scope of rights needed from another licensor, and may unexpectedly introduce marketing as well as negotiation complications. These considerations could cause a manufacturer to seriously consider using “generic” uniforms rather than face the overlapping complexities of using both player and team rights in its products. However, if one is to avoid litigation in such a situation, “generic” uniforms must mean precisely that. The extent to which team colors, city names, specific player numbers, and other characteristics can be used without creating confusion as to league and team involvement is a matter that is legally unsettled at this point.
FINAL THOUGHTS ON COORDINATION
When considering a line of sports-related memorabilia, rights from a variety of sources must be obtained and carefully coordinated. For example, consistency of commencement and expiration dates for uniform rights from a league and player rights from the respective players’ association should be sought in order to avoid extraneous periods during which products cannot be marketed for lack of rights from one of these entities, even though the agreement with the other entity continues to require minimum royalty payments. Even more troubling—what if the licensee enters one of these major deals and can’t close the companion deal? Or what if the one not yet signed finds out the other has been signed? There might be temptation to up the ante for the second deal. Clearly, manufacturers of pro sports memorabilia must be as coordinated as the professional athletes themselves to stay in the game. •••• James Kipling has represented licensors and licensees for more than 20 years, negotiating entertainment, sports, artwork, brand, invention, and technology agreements. He is Of Counsel with Dinsmore & Shohl LLP in Cincinnati, and can be reached at jim.kipling@dinsmore.com. Copyright: ©2015 James M. Kipling. All rights reserved.
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Brand Licensing
Customization And\Branding:
Licensing in the Age of Me-Commerce
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by Christopher Boone, CEO of Coveroo Inc.
hen major brands first discovered the volume and range of fan-generated art on the Internet, a typical response was trepidation—and for good reason. The Internet has done more to challenge a brand’s ability to protect its properties than any other technology in history. Not only is the volume of infringement and potential loss of revenue much greater, the policing process has become infinitely more complex. Consider some of the hottest “trends” in infringement, like the mashup. Let’s say, for instance, an artistically capable sports fan decides to create a T-shirt that shows a football team and a basketball team from the same market. As a brand, this scenario presents a range of issues—not only is your brand being compromised, you’re faced with the decision of whether to contact other brands. What many brands are starting to understand, however, is that in some cases fan artists produce work that infuses fresh ideas into an existing trademark, in a way that the brands’ own designers might not have considered. Brands are now embracing independent designers and providing them more outlets—and the fans themselves are eating it up. To an avid supporter of any given brand, the standard, flagship emblem mark just doesn’t cut it anymore. Fans want more. Brands want to be celebrated; consumers want to celebrate them in their own unique ways. As technology changes at a rapidfire pace, consumers are beginning to expect more
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than the typical e-commerce experience. Customization is a key component in purchasing options, and fans enjoy putting their own personal stamp on some of the world’s biggest names and brands. Shoppers are becoming more comfortable with the customization tools available online, and they have an appetite for placing a personal imprint on their favorite brands. It’s for reasons like these that licensing partnerships have become a critical element in the customization market. Maintaining brand integrity is more important than ever before as consumers indulge in the overall personalization of commerce. Brand protection can only be ensured by developing relationships with customization shops. To this effect, brand owners’ apprehension to fan-generated art on the Internet can be eased by expanding licensing opportunities of their brand’s elements. Recognizing the customization desires of the consumer and providing more outlets for their logos to be used builds brand recognition and creates a trust with the customer. This creates a larger selection of product and design at a reduced cost to the brand while also providing the opportunity for the individual consumer to contribute to the growth of the brands they love. •••• Christopher Boone CEO of Coveroo Inc. began his career in investment banking, has held senior executive positions in product and corporate development, and has held operating roles at Internet and software companies.
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