1980s
Reboot Ghostbusters, Peanuts, Strawberry Shortcake, Care Bears, and More!
Toy Fair 2016 • Top Licensed Toys at the Show • 2015 Stats • Sneak Peek at Hot Properties
VOLUME 33, NUMBER 1
Sony’s Ghostbusters re-boot opens July 22.
Features 16 Toy Fair 2016 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, evergreen classics, and what’s on deck to keep kids’ interests up across the board.
50 Pop Culture and Fine Art Licensing
The Licensing Book chats with executives from Choice Collectibles, the fine art licensee for Marvel about fine art licensing in the world of comics, fandom, and superheroes.
Departments 6 Jackie’s Point 7 LIMA Update Video Games and Licensing: A Potentially Rewarding Puzzle 8 Stat Shot 9 Kidz Global Entertainment Takes Over, But Toys Are Still on Top 10 Licensing News 12 Talking SEO No-Fail Tips to Boost SEO
13 Blogger Bash The third annual blogger conference returns to New York City. 14 Property Profile: Yo-Kai Watch Level 5’s new hit brand Yo-Kai Watch makes its mark across a variety of consumer products. 42 Licensing 101 When Is the Right Time to Jump into Licensing?
46 Hot Shots: Sony Pictures Consumer Products Mark Caplan discusses Ghostbusters, Smurfs, and SPCP’s plans for the year ahead. 48 Spotlight On: Care Bears How American Greetings Taps Digital Influencers for Social Good
44 Property Profile: Peanuts
52 Outside the Box Leveraging Licensed Visual Design in Retail Environments
45 Property Profile: Strawberry Shortcake
56 Of Counsel Moderating Minimum Guarantee Risk
THE LICENSING BOOK, Winter 2016 — “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. © 2016 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
®
THE
www.licensingbook.com
JACKIE’S POINT
Adventure Publishing Group Inc.® Vol. 33, No. 1, Winter 2016 President Laurie Schacht
laurieschacht@aol.com Welcome to the Winter issue of The Licensing Book. Timed to North American International Toy Fair taking place in New York City, this issue takes a look at some of the new licensed toys entering the marketplace. Even as technology—think drones and hoverboards—gains momentum within the toy industry, licensed toys remain on top. Entertainment properties continue to dominate the toy aisles, with properties such as Star Wars and Shopkins being two of the most sought-after toy lines for kids and collectors alike. Of course, Star Wars: The Force Awakens was the darling of the holiday season, and with a new movie-themed toy line rolling out now featuring new characters and vehicles specific to the film, kids and collectors have another reason to revisit the toy aisle this year. Looking at the toy industry in general (which we do every day, as the publishers of The Toy Book and the Toy Insider), licensed properties from the 1980s are gaining momentum. As you’ll see in this issue, Strawberry Shortcake, Care Bears, Ghostbusters, Peanuts, and more are expanding their lines, and toys and licensed consumer products based on both the classic properties and revamped movies and entertainment franchises are
6 • The Licensing Book
influencing the product mix. Iconix Brand Group recently launched “Strawberry Shortcake: Beyond the Box” on the brand’s YouTube channel. These humorous 1- to 3-minute shorts feature The Bridge Direct’s doll line in stop-motion animation. This new entertainment content is designed to appeal to both kids and moms who grew up with the brand. Manufacturers know that parents are the gatekeepers for toys and consumer products for their kids, especially in the core 4 to 8 age group where licensed products run deep. Introducing new products that give parents warm flashbacks to their own childhood is a great strategy, and many parents with kids in this age group today were children of the ’80s. Case in point: The Bridge Direct’s retro-style 35th anniversary Strawberry Shortcake doll was a top performer on Target’s endcap this past holiday season. This fall, the manufacturer will expand this line, and will also introduce a Then & Now assortment that will pair the line’s main characters in their 1980s iterations with the dolls featuring today’s look. As a mom who grew up in the ’80s and has a 6-year-old daughter, we’ll take one of •••• each, please.
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 Assistant Editors Magdalene Michalik
mmichalik@adventurepub.com
Varuni Sinha vsinha@adventurepub.com Assistant Visual Media Editor Joe Ibraham jibraham@adventurepub.com Production Director Bill Reese
breese@adventurepub.com
Comptroller 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
LIMA Update
Video Games and Licensing: A Potentially Rewarding Puzzle by Martin Brochstein, senior vice president, industry relations and information, Licensing Industry Merchandisers’ Association (LIMA)
L
ife used to be so simple when it came to video games and entertainment licensing—well, not really, but it seemed like it was. In the first couple of decades of the video game industry, consoles were king, packaged software was the only way to go, and the licensing of films, TV shows, sports, and characters for the category was pretty straightforward: royalty rate (based on wholesale price), with a guarantee and an advance—much the same as with most other merchandise categories. And, as the popularity of video games grew, the category became one of the “big three” revenue producers— along with toys and apparel—that typically supported an entertainment property’s licensing program. Of course, it was still a risk/reward business. Most notoriously, hundreds of thousands of licensed E.T. Atari game cartridges were buried in the New Mexico desert in the early 1980s (and unearthed less than two years ago) following an ill-fated effort to rush a substandard game to market to coincide with the film’s opening. But let’s fast forward to today, when the video gaming market has stratified into multiple segments and a plethora of genres—each offering a potential opportunity to an entertainment IP owner. In those early video game days, the cost of developing and marketing games for players who were tethered to their specialized game consoles or desktop PCs was a significant barrier to developers. But this is a different, more scattered world. Hardcore players of strategy games, first-person shooters, sports simulations, and other types of games mostly coalesce around consoles such as Xbox 360 and PlayStation 4. Those platforms (along with the Nintendo Wii U) also host a growing number of “toys-to-life” efforts, such as Disney Infinity, Skylanders, Lego Dimensions, and Nintendo’s amiibo. Meanwhile, a much broader and diffuse community of casual gamers has grown up around mobile platforms, including tablets and smartphones.
Winter 2016
And as the platforms have segmented, so have the number of game formats and business models for developers, publishers, and licensors. Today, there are traditional packaged games and digital downloads (“buy-to-play” games); Massively Multiplayer Online Games (MMOGs), which typically carry a monthly subscription charge to the player; and low-cost paid and free mobile games. The latter two formats generate revenue—which is shared by the IP owner—from in-game purchases, such as additional lives, added powers or equipment, or access to special levels. This vastly expanded landscape creates an opportunity for IP owners to gain a foothold in more than one of these genres, taking multiple bites of the video game apple. For example, a property such as Wizard of Oz or Star Trek might be licensed into a “toys-to-life” platform, a casual “social slots” game, a puzzle game, a subscription-based MMOG, or something else. While we’re not seeing a return to the good old days of packaged gaming, the landscape has evolved into something different that perhaps can be as lucrative, if not even more so. According to a top executive for an entertainment company, “There are so many different genres in mobile gaming, that while no single one of them may give you the kind of money that a packaged game did, in aggregate, you can come close to if not surpass those former levels.” ••••
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.
The Licensing Book • 7
Stat Shot
Dollar sales in billions, u.s. toy industry, super-categories* SUPER-CATEGORY
ANNUAL 2014
ANNUAL 2015
CHANGE
Action Figures & Accessories
$1.32
$1.43
9 percent
Arts and Crafts
$1.04
$1.00
-4 percent
Building Sets
$1.86
$2.04
9 percent
Dolls
$2.38
$2.58
8 percent
Games and Puzzles
$1.46
$1.61
11 percent
Infant, Toddler, and Preschool Toys
$2.89
$3.06
6 percent
Youth Electronics
$0.63
$0.60
-5 percent
Outdoor and Sports Toys
$3.30
$3.59
9 percent
Plush
$0.98
$1.00
2 percent
Vehicles
$1.30
$1.43
10 percent
All Other Toys
$1.07
$1.11
4 percent
GRAND TOTAL
$18.23
$19.45
7 percent
*Approximately 80 percent of U.S. toys retail market. Source: The NPD Group, Inc./Retail Tracking Service. Data is representative of retailers that participate in the NPD Group’s Retail Tracking Service. The NPD’s current estimate is that the Retail Tracking Service represents approximately 80 percent of the U.S. retail market for toys.
TOP SELLING TRADITIONAL TOY ITEMS IN 2015, RANKED ON DOLLARS RANK
ITEM
MANUFACTURER
1 2 3 4 5 6 7 8 9 10
Shopkins 12-Pack Assortment
Moose Toys
Paw Patrol Basic Vehicle with Pup Assortment
Spin Master
Hot Wheels Car Basic Assortment
Mattel
Shopkins Two-Pack
Moose Toys
Barbie Dreamhouse
Mattel
Teenage Mutant Ninja Turtles Figure Assortment
Playmates Toys
Minecraft Mini Figures Assortment
Mattel
BB-8 App-Enabled Droid
Sphero
Hot Wheels Five Car Gift Pack Assortment
Mattel
Minecraft The Cave
LEGO Group
Source: The NPD Group, Inc./Retail Tracking Service. The list does not include items that are exclusive to specific retailers.
8 • The Licensing Book
Winter 2016
Kidz Global
TOYS ARE STILL ON TOP While entertainment brands and characters continue to increase in popularity, playing with toys remains kids’ No. 1 leisure activity.
by Philippe Guinaudeau, CEO, Kidz Global
T
oday, children know more entertainment brands, characters, and licenses than they did four years ago. In 2011, children from Europe 5 (the UK, Italy, Spain, France, and Denmark) knew 271 brands* (number of different brands spontaneously mentioned by the child or by parents of children ages 0 to 14). This year, kids know 416 brands, marking an increase of 54 percent over four years—but their combined purchasing power has not changed in the same proportions. What are the reasons for such an increase in the number of brands children know? This growth is linked to three concomitant factors: 1. The sheer number of brands has expanded, but far from our 5 percent total. Therefore, this only explains a small fraction of the phenomenon. Furthermore, toy and game brands did not gain any traction here, still remaining at 9 percent of the brands. 2. Kids now have increased access to the Internet, which in turn increases brand awareness—especially in regard to entertainment content—and generates a strong appetite for licensed products. 3. Distribution has increased the concentration of the offerings of the most popular brands. This effect has enhanced the reputation of these brands, while making it more difficult for the less supported brands to break through. Today, children all know the same six to eight mega brands and a wide range of others that differ from one child to another. What consequences does this landscape present for licensees and toy manufacturers? Imagine: 416 different brands, giving kids prolific choice. Now more than ever, it is important for manufacturers, licensors, and licensees to perfectly master the key factors in the popularity of their brands.
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Simultaneously, digital entertainment is growing quickly, and is becoming increasingly popular with children and teenagers of all ages. The majority of kids now have access to a mobile device, whether it’s a smartphone or tablet of their own, or one belonging to a parent, resulting in countless hours spent playing with apps and games. However, no matter how much it may seem like kids are glued to their devices, playing with traditional toys and games is the primary leisure activity of kids ages 3 to 6, far ahead of the second-most popular activity: watching TV. In the U.S. for instance, 16 percent of the active hours** of a 3- to 6-year-old child is dedicated to playing with toys and games, while 11 percent of their active hours are spent watching TV. The same applies in all the countries studied, even in Brazil. In this country, where watching TV is practically a national sport (thanks to the novellas and sports—especially football), this activity is on-par with playing with toys, at 12 percent of kids’ time. For kids ages 7 to 9, playing with toys and games ranks as the second most popular leisure activity, right behind watching TV. So, although time spent on digital activities is increasing among kids—including the younger ones—playing with toys remains—by far—the most important leisure activity for kids up to 9 years old. •••• Philippe Guinaudeau is a senior consultant with 24 years of experience in marketing research. He is also the CEO of Kidz Global, an international market research and consulting firm, with offices in Paris and Hong Kong.
*Source: Kidz Global - BrandTrends, October 2015 **Source: Kidz Global - Kids Observer Research, December 2015
The Licensing Book • 9
Licensing News Licensees Announced for Batman v Superman: Dawn of Justice Warner Bros. Consumer Products (WBCP) signed new licensees for a global licensing and merchandising program for Batman v Superman: Dawn of Justice, releasing in theaters on March 25. Mattel will unveil a full toy line, including action figures, vehicles, play sets, and collectible figures; The Lego Group will launch construction sets; and Rubie’s Costume Co. will introduce a new line of costumes and accessories for kids and adults. Other deals include Funko for stylized collectible figures; Thinkway Toys for a role-play line; Jakks Pacific for Batman and Superman collectible figures; Tonner Doll for detailed fashion dolls; Bandai America for poseable figure model kits; Spin Master for R/C Batmobiles; and Buffalo Games for adult puzzles. Sideshow Collectibles will launch detailed statues; The Noble Collection will introduce prop replicas; NECA will launch an 18-inch figure; Soap Studios will launch replicas of the Batmobile; and Hot Toys, Kotobukiya, SquareEnix, Medicom Toy, Prime 1 Studio, and Union Creative will launch collectibles. Licensees also include Bioworld, Junk Food, New Era Cap Co., Matchless London, Converse Kicks, Scholastic, and Titan Books. Kotobukiya Batman and Superman figures
DCP, Bandai America Launch Finding Dory Product Line
Activision Publishing, Kid Cuisine Partner for Skylanders Frozen Food
Disney Consumer Products (DCP) and Bandai America unveiled the new global product lineup for Disney•Pixar’s Finding Dory, debuting in the U.S. on June 17. With recognizable sounds and voices from Dory, Marlin, and Nemo, Bandai’s products capture the essence of the film and transform key moments into play sets, interactive toys, feature figures, plush, and bath toys. Highlights include a My Friend Dory interactive soft figure and Swigglefish figure. The merchandise will roll out globally starting in May.
Activision Publishing Inc. and ConAgra Foods’ Kid Cuisine partnered to launch Skylanders-inspired frozen food. Available now through April 15, consumers can purchase the promotional meals at Walmart, Target, and participating major grocery stores across the U.S. Kids can enjoy meals featuring Stealth Elf- and Kaos-shaped chicken nuggets with gem-shaped cookies, or Spyro- and Dream Catcher-shaped macaroni with pudding that changes color while kids eat. Nine different meals are available. Kids can get an extra treat inside each Skylanders Kid Cuisine meal box, and a free Stealth Elf Skylanders Battlecast card. Skylanders Battlecast is a new free-to-play mobile game, with everything from collectability to strategic card combat, online games, and a single-player campaign.
10 • The Licensing Book
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GBI to Launch Tween Girls Brand This Summer Genius Brands International Inc. (GBI) will produce Spacepop, a new music- and fashion-driven brand for tween girls, featuring music by Ron Fair, character and fashion design by Han Lee, and stories by Steve Banks. Spacepop currently features more than 100 animated shorts. Andy Heyward, chairman and CEO of GBI, will spearhead the production. Heyward is responsible for producing more than 5,000 episodes of TV series, including Inspector Gadget, Strawberry Shortcake, Super Mario Bros., and Sabrina the Teenage Witch. GBI has appointed Spacepop’s first licensing partner, Imprint, as the global master publisher. Imprint will launch the brand’s book series in July, starting with Not Your Average Princesses, written by Erin Downing and illustrated by Jen Bartel.
Toy State Partners for Teenage Mutant Ninja Turtles Vehicles Toy State has secured a licensing partnership with Nickelodeon to design, develop, and manufacture lines of toy vehicles featuring the Teenage Mutant Ninja Turtles entertainment brand. The three-year deal will allow Toy State to create Teenage Mutant Ninja Turtles-themed lights and sound, preschool, and radio-controlled vehicles. Product will be available in mid-2016 at major retailers. Toy State recently added Barbie and NASCAR to its licensing portfolio, joining the company’s flagship Road Rippers and Nikko brands, as well as lines featuring leading licensed properties including Hot Wheels, Caterpillar, WWE, and Thomas & Friends. Teenage Mutant Ninja Turtles Party Van
Winter 2016
The Licensing Book • 11
Talking SEO
No-Fail Tips to Boost SEO by Jeremy Pound, co-founder, CEO, Juicy Results
S
earch Engine Optimization (SEO) is the process of improving the likelihood that your web pages will display in a search engine’s “natural” results. When a consumer searches for a term or phrase that is related to your business, you want your website to be found on the first page of Google. The person searching finds the answers or products they want, and you get the chance to gain a new customer. Here are some tips that will help any website increase its rankings:
CONSISTENTLY PUBLISH FOCUSED CONTENT Creating compelling content on a regular basis is the most valuable SEO activity, but you need to have a plan in place to keep the content focused on the keywords for which you hope to rank. For example, if your product line features many bath toys, consider these topics: How should parents use your toys to make bathtime fun? What is it about this cleansing ritual that drives so many children crazy? Are there other helpful tips for making bathtime fun that don’t require your toys? You could either answer each of these questions with a quick blog post, or create a series of articles around each of these topics. Search engines want to connect users with the best answers to their problems. When they see that your website consistently publishes new content over a long period of time about a specific topic, they will begin to consider your website an authority on that topic and ultimately rank the site’s pages for queries related to that topic.
EXPAND TO VIDEO Video content can be just as effective as written content in expanding your website’s search engine visibility. When you add video to your text content, you’ve really got a potent cocktail for ranking! For many search queries, Google will show videos above the web pages that return on the first page of search results. This is especially true for queries that
12 • The Licensing Book
start with “How to…” Don’t avoid this tip just because you have no previous experience with video production. The search engines can’t really tell the difference between a smartphone video and a full-blown Hollywood production. The important attributes that will cause you to rank are the file name, the title, and how you describe the video when you upload it to your website, YouTube, or both.
CREATE SOCIAL MEDIA BUZZ Social media websites can connect your products with new customers all on their own. In addition to their built-in audience, some of these social media channels seem to boost your rankings and authority with search engines. Platforms such as Pinterest, Twitter, and Facebook can also expand your search visibility, as can Google’s own social network, Google+. Search engines use popularity as one of many factors in determining which pages to rank. Sites that have a lot of “buzz” tend to climb in rankings. The thinking from the search engine’s point of view is that if people are liking, sharing, pinning, tweeting—or whatever-ing— your pages on social media, then your content (and by association your products and brand) are worth indexing and serving up in search results. Have some fun with creating your new web content and videos. People love to share fun and clever things on social media with their networks. This increased exposure cannot only lead to direct sales, but can also boost your search engine visibility. Success won’t come overnight, but following this process over time will result in new customers discovering your company and products via search engines and social media. ••••
Jeremy Pound is the co-founder and CEO of Juicy Results, the Internet marketing agency for the Fortune Five Million. He is also the author of The Bootstrapper’s Guide to SEO.
Winter 2016
Blogger Bash
BLOGGER BASH 16: MAKING WAVES IN NYC
T
he third annual Blogger Bash two-day conference will take place on July 13 and 14 aboard the Majesty Yacht, docked in New York City. Revolutionizing the way brands and bloggers connect, the event will welcome more than 400 bloggers, 150 members of traditional media, and more than 100 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 325 million Twitter impressions. Brands such as Hasbro, Disney, Peanuts, Ella’s Kitchen, the New York Times, Crunch Fitness, Rite Aid, Teleflora, and American Greetings Properties 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 195,000 UMVs per month and an average Twitter following of 12,700. Parent bloggers are 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 this group. Whether you want to host a party that is all about you, or if you want to be part of a larger themed party, such as The Toy Insider’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. Blogger Bash will take to the high seas this year, providing at-
Winter 2016
tendees with an unrivaled and unforgettable experience. This event will give you 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 across YouTube, Facebook, Twitter, Instagram, and more. If you are interested in getting involved with Blogger Bash next summer, please contact Laurie Schacht at thetoyinsidermom@gmail. com or (212) 575-4510, or visit bloggerbash.com. ••••
The Licensing Book • 13
Property Profile
LICENSOR: LEVEL 5
“ • • • • • • • • •
•
We expect Yo-Kai Watch to have wide and growing appeal, especially to kids, over an extended period of time, due to the unique storyline and the combined multimedia efforts of the companies introducing it in the U.S.” —Reggie Fils-Aime, president and COO, Nintendo of America
YO-KAI WATCH FACTS
Yo-kai are supernatural creatures that have a huge role in Japanese folklore. When something troublesome happens in people’s lives—such as being really hungry or blurting things out before thinking—it might be caused by a Yo-kai. Yo-Kai Watch is a two-and-a-half-year-old series that has sold 8 million games to date and spawned a TV show, a feature film, a dance, and a line of toys in Japan. Yo-Kai Watch is a cultural phenomenon in Japan. The Yo-Kai brand has generated more than $2 billion in sales, including games, music, and books. There are more than 200 Yo-kai, each with its own unique skills, strengths, and personalities. Names of popular Yo-kai characters include Snotsolong, Hungramps, Blazion, Jibanyan, Walkappa, Tattletell, and Shmoopie. In the Japanese version of the game, the story takes place in Sakura New Town, an average Japanese town. In the U.S. version, the setting is Springdale, an average American town. The story of Yo-Kai Watch centers around a young boy who gets a special watch that empowers him to discover and summon mysterious Yo-kai that help him solve problems in his daily life, which are usually caused by other, trouble-making Yo-kai. As part of this franchise, an animated series currently airs on Disney XD in the U.S., and a new line of Yo-Kai Watch toys and accessories from Hasbro Inc. is now available, which includes a Yo-kai Watch and medals that can be used in-game. Yo-kai medals come with QR codes on the back for kids to scan into the Yo-Kai Watch game to receive in-game items and rare yo-kai. In the video game for Nintendo DS consoles, kids can feed their Yo-kai food, beverages, and medicine during battle to heal them. Their assistance and leadership in battle is crucial to success.
14 • The Licensing Book
Winter 2016
1. The Yo-kai Watch Figure Hangers are exclusively available through UCC Distributing. Hitting the market this spring, these figure hangers come in blind packs with 11 different characters to collect. 2. Accessory Innovations will provide bags, backpacks, plush backpacks, plush bag clips, wallets, lunch bags, luggage, headwear, cold weather accessories, umbrellas, hosiery, suspenders, and ties. 3. Yo-Kai Watch, from Nintendo, brings the brand to the company’s DS family of portable gaming consoles. The game challenges players to collect Yo-kai to befriend and summon for battle against other Yo-kai spirits. Designed for kids ages 7 to 12, this game features strategic gameplay mixed with the collectibility of the brand. 4. KIDdesigns Inc. will introduce youth electronics, including computer accessories such as USB drives. 5. With the Yo-kai Watch and medals, from Hasbro, fans can imagine summoning Yo-kai characters in real life. Kids can slide the Yo-kai medals into the watch and it will recognize each medal and play the character’s name and tribe song. The watch comes with two exclusive Yo-kai medals. Each Yo-kai Watch Medal Mystery Bag includes three Yo-kai medals with three ways to play: summon, collect, and discover. 6. Fans can show off their Yo-kai collection with the Yo-kai Medallium Collection Book, from Hasbro. This set includes the collection book similar to Nate’s in the TV series, an exclusive Yo-kai medal, two feature tribe pages, clear collection book pages with slots to store Yo-kai medals, and a character sticker sheet. 7. Cortina Leomil has signed on for all footwear, including athletics, sandals, boots, weather boots, slippers, and casuals.
1.
2. 7.
3. 6.
5.
4.
All product not final; design subject to Licensor’s final approval
Winter 2016
The Licensing Book • 15
DEMDACO DEMDACO will introduce an exclusive collection of gift products inspired by The New York Times bestseller On the Night You Were Born, by Nancy Tillman, which imagines the world stands still to take note of a baby’s birth. The DEMDACO line features baby room décor and toys that capture the book’s “you are loved!” message. The collection features plush toys, a soft storybook, and keepsakes, including frames, fi gurines, a growth chart, and a musical water globe.
Alex Brands Alex Brands will expand its licensed product offerings with new activity items based on the Nickelodeon animated TV series Shimmer and Shine, Blaze and the Monster Machines, and Netflix’s Project MC2. New items include a Shimmer and Shine Knot a Pillow designed for younger crafters. Alex will also create an entire line of activity products based on Illumination Entertainment’s upcoming feature film The Secret Life of Pets.
Carrera Carrera’s Nintendo Mario-Copter features Mario flying a gyro-stabilized quadrocopter that’s nearly 12 inches across and features protected rotors. The 2.4 GHz flight control system allows for precise control of the quadrocopter, which has a flight time of about 7 minutes with a 60-minute recharge time. The quad comes ready to fly right out of the box and is designed for kids ages 12 and up. Carrera’s GO line will introduce the Disney•Pixar Cars Carbon Racers slot car set. The new set features specially designed imagery of Lightning McQueen and Francesco Bernoulli, and has everything kids need to start slot car racing. Designed for kids ages 6 and up, the set comes with two cars, controllers, accessories, and more than 14 feet of slot car track.
16 • The Licensing Book
Nintendo Mario-Copter
Winter 2016
Aurora Aurora World will add sound to its Raggedy Ann and Raggedy Andy dolls. Kids can hug their hearts to hear them say “I love you.” Both dolls are dressed in blue gingham outfits accented with grosgrain ribbon and ric rac. Aurora’s My Little Pony Friendship Is Magic line features four new characters in new color combinations, with each one sporting her own unique cutie mark. The new Hush Puppy line features 5-, 10-, and 18-inch plush with droopy ears. There is also a clip-on version available, so kids can take their puppy on the go.
Blip Toys Based on the new Disney Junior animated short films, Whisker Haven: Tales with the Palace Pets, the Disney Palace Pets Sweetie Tails, from Blip Toys, are candy-colored collectibles that are all dressed up for the Confection Costume Contest. Rouge, Slipper, and Daisy feature long rainbow tails, multi-colored candy stripes, and a three-piece, treat-shaped fascinator. These new Disney Palace Pet figures are designed for kids ages 4 and up.
DGL Toys Created by Michele Goren, Knolly Nibbles is a lovable mouse with no tail and a big heart. Her message is to teach kids that being different is not just OK—it’s normal. Created eight years ago, Knolly Nibbles soon grew into an icon within the Goren family and eventually captured the hearts of some key industry animators with backgrounds at DreamWorks and Disney. After unsuccessfully attempting to launch the property on her own, Goren discovered the crowdfunding website ToyBacker.com and launched a crowdfunding campaign to get initial product capital raised and get awareness of the IP. DGL Toys noticed Knolly Nibbles, took it on as a new IP, and has now signed Knolly Nibbles for a full line of comprehensive toys, including electronic plush, remote-control toys, and impulse price point goods. DGL Toys has also signed the license for Yo-Kai Watch for flying toys, sound banks, drawing projectors, remote-control toys, and room guards.
18 • The Licensing Book
Knolly Nibbles
Winter 2016
Paw Patrol Dream Lites
Pillow Pets The Pillow Pets Dream Lites line, from CJ Products, now includes characters from Paw Patrol. The adventurous rescue pups, Chase and Marshall, act as a night-light that turns kids’ rooms into a starry sky with the press of a button. Designed for kids ages 3 and up, the licensed Dream Lites will project Chase or Marshall’s paw print alongside the stars and feature four light options. Pillow Pets folding plush and Dream Lites will also feature characters from DreamWorks Animation’s upcoming comedy, Trolls. Pillow Pets Folding Plush will incorporate Poppy’s hot pink up-do and signature flower, Branch’s mop of hair, and Guy Diamond’s luminescent poof of gray. The Dream Lites turn the folding plush into a night-light, illuminating the Trolls’ playful icons and star patterns onto the ceiling. Alternating hues of amber, blue, and green light set the scene for a peaceful night’s slumber.
Dynacraft Shaped like Hello Kitty, the Dynacraft Hello Kitty 6V Kitty Kar features a custom body style. This set of wheels includes the full Hello Kitty face in the front and a Hello Kitty embossed steering wheel with sound. An MP3 cord and speaker allows kids to cruise along to their favorite tunes. The car features bright pink accents and lets kids drive up to 2.5 mph. The ride-on also has Hello Kitty’s signature bow, which lights up. The contoured, comfy seat and adjustable play seatbelts offer peace of mind to parents.
Toy State The Teenage Mutant Ninja Turtles Party Van R/C, from Toy State, is designed for kids ages 6 and up. Featuring full-function steering and an easy-to-use controller, kids can show the enemies who’s boss with this Turtle-power packed R/C. Kids can take Barbie on a roadtrip with the Barbie Convertible R/C, designed for kids ages 3 and up. This simple-function R/C convertible can seat two Barbie dolls and has a wheel-shaped controller.
Winter 2016
Barbie Convertible R/C
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Tech 4 Kids The Storytime Theater Projector is an all-in-one bedtime and entertainment projector for kids ages 3 and up. Using a tablet and the Storytime Theater app, kids can unlock Disney stories by selecting Press ‘n Play on the screen. Through a wireless connection to the projector, stories project onto bedroom Storytime Theater Projector walls with custom animation for each page. Children and families can collect eight Press ‘n Play stories featuring familiar characters from Disney’s Frozen, Tangled, Sofia the First, and Doc McStuffins, as well as from Disney•Pixar’s Toy Story, Finding Nemo, and Cars. Squishy Pops are squishy, mini-sized collectible characters that stay stuck to a flat surface even when they are upside down. Designs include solid characters and new crystal characters. They are available in My Little Pony, Finding Dory, and Despicable Me varieties and are designed for kids ages 4 and up.
Playmobil
Porche 911 Carrera S
Playmobil will debut its Porsche 911 Carrera S, fully equipped with functioning front, rear, and dashboard lights. The set includes the Porsche, two figures, a show wall, a rear spoiler, a front apron, eight rims, a car jack, tools, a Lechuza planter, and other accessories. It is recommended for kids ages 4 and up. Playmobil also extends its National Hockey League line beyond the NHL “Original 6.” The expansion will include new team goalies and players that can be played with using the current NHL Hockey Arena, as well as additional play sets and accessories to come later this year.
PercyVites PercyVites, a video personalization platform for people of all ages, offers an experience in which fans can immerse themselves into their favorite characters’ worlds by inserting their own pictures, party details, and messages directly into various fun clips of animated series and personally addressing them to friends and family members. The Percy Party Dashboard allows for easy organization of party details and RSVPs, simplifying the party planning process for parents and kids. New licenses for this year include Sonic, Franklin, Build-A-Bear, Octonauts, Shopkins, and Little Charmers.
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Universal Universal showcases Universal Pictures and Illumination Entertainment’s The Secret Life of Pets, a comedy about the lives pets lead after their owners leave for work each day, and the latest film from the humans behind Despicable Me. Universal unveils a first look at global master toy partner Spin Master’s line, including traditional plush and figurines, as well as interactive and motorized toys. Universal also offers a sneak peek of the full range of consumer products for the new film, including apparel, accessories, back-to-school, home, and stationery.
Grow’n Up The Crayola Super-Duper Art Studio, from Grow’n Up, lets preschoolers share their artwork with their friends. The studio features a chalkboard, a magnetic whiteboard, and a desktop. The giant drawing board encourages kids to share creative fun together, or parents can easily convert the easel into a desk without using any tools. The Crayola Qwikfl ip Glow Easel is a double-sided easel with LED lights, a chalkboard surface, and paper clips. It features 10 lighting sequences and three locking easel positions. Kids can use the two included gel markers to draw, doodle, and light up their creations. The double-sided design lets two kids draw at the same time, while enhancing motor and social communication skills. Both easels fold for easy storage and are designed for kids ages 3 and up. Crayola Qwikflip Glow Easel
Maisto Tech Each of the Maisto Tech 1:10 Desert Rebels is a rugged off-roader with realistic details and weathered decoration. The pistol-grip controller provides full-function radio control. A lightweight—but tough—vac-formed body has extra body details for realism. Designed for kids ages 8 and up, the vehicle has blocky-treaded off-road tires that provide lots of grip. The Maisto Tech Ford GT NAIAS is a replica of the Ford GT exotic car that debuted at the North American International Auto Show. Offered in 1:14 and 1:24 scales and designed for kids ages 8 and up, each vehicle has full-function radio control and a pistol-grip controller. The Maisto 1:24 Off-Road Kings die-cast are 1:24-scale custom trucks with off-road accessories, off-road tires, custom wheels, and paint. Styles include the 2015 Chevrolet Silverado, the 2017 Ford F-150 Raptor, and the 2015 Jeep Wrangler Unlimited. Each has opening doors and an opening Desert Rebel Ford hood or tailgate. The Maisto 1:64 Harley-Davidson die-cast have authentic Harley-DavidMustang son decorations and come in assorted styles including Chevrolet, Ford, and Volkswagen classics. Customized details include after-market wheels and tires, in addition to the Harley Davidson graphics.
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Hasbro
Yo-kai Watch and medals
With the Yo-kai Watch and medals, from Hasbro, fans can summon Yo-kai characters from the Level-5 video game in real life. Kids can slide the Yo-kai medals into the watch and it will recognize each medal and play the character’s name and tribe song. The watch comes with two exclusive Yo-kai medals. Each Yo-kai Watch Medal Mystery Bag includes three Yo-kai medals with three ways to play: summon, collect, and discover. Players can collect medals and scan them into the Yo-kai Land app for more fun. Fans can show off their Yo-kai collection with the Yo-kai Medallium Collection Book. This set includes a collection book similar to the one seen in the TV series, an exclusive Yo-kai medal, two feature tribe pages, clear collection book pages with slots to store Yo-kai medals, and a character sticker sheet. All Yo-kai products are designed for kids ages 4 and up.
UCC Distributing UCC Distributing introduces Minecraft Craftables, which include a random buildable figure scene and a random colored stone block. Each figure stands 2 to 4 inches, depending on the character’s scene, and comes packed in its own reusable colored stone block. Kids can use the stone block to store their figures or other Minecraft toys. There are 10 different Craftable scenes to collect, including Spider Jockey, Alex and Enderman, Pig Rider, Squid, Diamond Steve with Enderdragon, Steve in Nether Portal, Creeper and Ocelot, Wolf, Steve, and Gold Steve with Ghast. The Five Nights at Freddy’s Figure Hangers Mystery Pack is based on the video game app Five Nights at Freddy’s. With 10 different characters to choose from, kids can collect Freddy, Bonnie, Foxy, Chica, Balloon Boy, Mangle, Puppet, Toy Bonnie, Toy Chica, and the rare chaser figure Golden Freddy. Each figure stands about 3 inches tall, and can be used as a key chain, a backpack clip, a belt clip, a collectible figure, or anywhere kids can hang them. Five Nights at Freddy’s Foxy Key Chain
Entertainment One Entertainment One’s Peppa Pig will expand with new product offerings this year. Master toy licensee Jazwares adds plush, figures, vehicles, and play sets for kids ages 2 and up to its collection. The Muddy Puddles Family Pack is a set of plush characters featuring Peppa and her family and friends. When kids squeeze the toys’ tummies, they snort with laughter. Jazwares’ line of building sets expands with Peppa Pig’s Treehouse Construction Set and Peppa Pig’s House. Blind Bag Figures will be sold separately and each mystery bag will contain one of 24 character figures from the series, all of which are compatible with the construction sets. Parragon, a new Peppa Pig licensee, introduces the Peppa Pig Happy Tin, a keepsake tin that includes three books for coloring, sticker, and activity fun; four felt-tipped pens; and a double-sided poster to color. The Make It Together Peppa Pig Craft Tube includes everything kids need to make a Peppa Pig sock toy. Montco offers the Peppa Pig Pop-Outz! Grab Bag, an activity kit featuring two 6- by 9-inch coloring boards, three washable markers, and a 4- by 6-inch sticker sheet with 25 paper stickers. Each character is die-cut to pop out and stand. Suitable for kids ages 3 and up, the Pop-Outz! Special Delivery features four coloring boards with 10 pop out characters and icons die-cut with pop-out stands, a background scene in full color with stand-up feet, 10 washable markers, and a sticker sheet. Blow Mold Disk Ornaments, from Kurt Adler, are 90mm blow-mold disk-shaped ornaments featuring an image of Peppa Pig adorned with glitter trim. The Decoupage Ball Ornament is 80mm and features Peppa Pig artwork. Blow Mold Disk Ornaments
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Imperial Toy Imperial Toy’s Star Wars Figural Bubble Toppers feature new characters such as Captain Phasma, Kylo Ren, and old favorites, including Chewbacca. These 8-ounce bottles come with Super Miracle Bubble solution and lifelike sculpted toppers. Imperial Toy will make a big splash with its Finding Dory and Finding Nemo Bubble Blasters. Complete with Super Miracle Bubble Solution and a shell-shaped dipping tray, kids can dip the wand in the solution and watch the bubbles flow. There is also an R2-D2 Bubble Blaster. Disney Glow Pods allow kids to accessorize their outfits in the dark. These light-up badges and accessories feature Disney characters such as Mickey Mouse, Elsa, and Olaf. Lumination Glow Pods are available in designs for boys and girls, with everything from bracelets and necklaces to stickers and masks. Imperial Toy has transformed Disney characters into miniature sweets. The D*lectables’ Disney line features characters such as Cinderella, Ariel, Mickey, and Minnie as ice cream, doughnuts, and cupcakes. All of these products are designed for kids ages 3 and up. Star Wars Figural Bubble Topper
Lionel Lionel’s ready-to-play sets feature some of kids’ favorite brands. Designed for kids ages 4 and up, the battery-powered sets feature 24 curved and eight straight plastic track pieces for various layout options and an RC remote control that allows the train to go forward and reverse, sound a whistle, and ring a bell. The Mickey Mouse Express Ready-to-Play Set lets kids help with Mickey’s special delivery and help spread Christmas cheer. It features Mickey driving a general-style locomotive, a present-filled tender with Donald Duck, a boxcar, a center-cupola caboose, and Disney-specific announcements. The Polar Express Ready-to-Play Set showcases children’s shadows as they sit in the passenger cars Hogwarts Express drinking hot chocolate. The set features a steam locomotive and tender, a passenger coach, and an obserLionChief Set vation car, 24 curved and eight straight plastic track pieces, and an RC remote control. With the John Deere Freight Ready-to-Play Set, kids can transport farming equipment. The set includes a general-style locomotive and tender, a boxcar, and a center-cupola caboose. The Mickey’s Holiday to Remember Disney Christmas Set includes a 4-4-0 general-style locomotive with a wood tender, a boxcar, an animated gondola, a square-window caboose, and a combination of track pieces. When the car is in motion, Mickey and Minnie figures circle the gondola. The Hogwarts Express LionChief Set includes a 4-6-0 locomotive, two passenger coaches, a combination car, and a combination of track sections. Both sets feature puffing smoke, operating headlights, and other sound effects.
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Jazwares Lil’ Chuck & Friends Mini Vehicles, from Jazwares, is a line of 20 trucks, now featuring Marvel-licensed vehicles. Chuck & Friends Talkin’ Spider-Man Vehicle is a talking vehicle featuring phrases and sounds from your friendly neighborhood Spider-Man. Animal Jam, in association with National Geographic, is the No. 1 online social game for kids with more than 40 million registered players worldwide. Animal Jam characters, including Penguin, Bunny, and Monkey, will be available as collectible toys with matching accessories. A limited-edition Light Up Ring reveals a secret pattern on select characters. Kids will also be able to decorate the dens or have a dance party in the Club Geoz Ultimate Dance Party play set. Jazwares’ Peppa Pig toy collection features a range of preschool items, including plush, figures, toy vehicles, and play sets. Kids can create their own Peppa world with construction sets, including a Peppa Pig’s Treehouse Construction Set and Peppa Pig’s House Construction Set. Twenty-four blind bag figures designed to work with all construction sets will also be sold separately. Kids can squeeze the plush characters’ tummies for extra fun or collect Peppa and all her friends with fun themed accessories. Kids’ favorite digital stars on YouTube join the Tube Heroes line in action figure form in the Dan TDM Diamond Dimension Pack. The pack comes with a poseable action figure of Dan TDM, his best buddy and scientist Dr. Trayaurus, a moving mine cart that fits both characters, and Dan TDM’s arsenal of removable weapons. There are 18 Tube Heroes to collect this year. Chuck & Friends Talkin’ Spider-Man Vehicle
Party Animal WWE TeenyMates is a new line of 1-inch tall mini collectible figures, from Party Animal. Series one includes 32 figures of wellknown WWE superstars including John Cena, The Rock, Macho Man Randy Savage, and Stone Cold Steve Austin. WWE TeenyMates are sold in blind packs, each containing two WWE figures, a collector sheet, and two double-sided puzzle pieces that feature a mini-collector poster on one side and a wrestling ring on the other. WWE TeenyMates Each TeenyMates Big Sip character cup features a unique 3-D NFL character design available in a variety of team uniforms. Fans of NFL TeenyMates will soon be able to take their collection onthe-go with the TeenyMates Carry Case. The carry case is a foldable football field play set with room to store TeenyMates and accessories. Party Animal will also introduce a new line of mini collectibles designed for football fans ages 4 and up. Mad Lids are mini collectible caps that look like 2-inch tall versions of official new era NFL caps. Mad Lids will be available in blind packs that contain two mini caps, a collector sheet, and two display stands to display your team cap. Fans can collect all 32 NFL team caps, including rare caps.
Winter 2016
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NKOK As the upcoming Ghostbusters film transcends a new generation, NKOK will launch three new Ghostbusters vehicles. The next generation Ecto-1 will be available as a full-function radio-controlled and fully interactive battery-operated ghost catcher. Both will feature a Slimer on the roof, which lights up on the R/C version, as well as original sound effects and music. NKOK will also introduce the classic 14-inch L Classic Ecto-1 R/C with working lights and sounds. The 1:8-scale Extreme Machine amphibious monster truck and high-performance Rock Crawler will get Realtree camouflage treatment. The 1:8-scale Realtree Extreme Terrain vehicles will be available in three body styles: Ford F-150, F-150 SVT Raptor, and 2015 Jeep Wrangler Unlimited. Powered by dual high torque motors, they will perform on grass, mud, rocks, sand, and snow. With the rugged body of a 2015 Jeep Wrangler or 1970 Ford Bronco, these Realtree Rock Crawlers have powerful motors, grip tires, and a classic, stylish body. NKOK also offers a line of radio-controlled vehicles designed for kids ages 3 and up and will introduce Ford Mustang GT, Ford F150, and Jeep Wrangler styles. Each vehicle features real working lights, sounds, and forward and backward motions. Turn the entire world into a laser tag arena with Discovery Kids Wrist Blaster Lasertag. These futuristic wrist blasters feature sounds and vibrations with each direct hit. The set Realtree Rock Crawler Jeep includes two dynamic blasters, which allows for play with up to three different teams and hundreds of players.
Just Play Just Play will introduce a new toy line featuring characters from the new Disney Junior series The Lion Guard. Kids can pretend to help the leader Kion and his friends protect the Pride Lands with the new Pride Land Play Set, which features an exclusive Kion figure and accessories. Additional 3-inch collectible figures, including limited-edition chaser figures, and small play sets such as Bunga’s Coconut Launcher and Beshte’s Boulder Catapult, will also be available. The 8-inch Pride Land Brawlers figures feature Kion, Bunga, and Beshte as interactive friends who say multiple phrases. The soft plush characters come in three sizes and assorted characters. Kion and Bunga light-up Talking Plush are also available. Kion lets out a roar and Bunga toots, and both feature the Mark of the Guard emblem on their arms. All toys in this line are designed for kids ages 3 and up. The new Mermaid Magic Princess Sofia, based on the Disney Junior series Sofia the First, turns bath time into a royal underwater adventure. Kids can press Sofia’s amulet for music and lights. Mermaid Magic Princess Sofia sings, lights up, sparkles, and her tail flutters through the water. Designed for kids ages 3 and up, she also comes with a removable seashell tiara and hairbrush for hair play. The Glow-A-Lot Care Bears magically glow in the dark. Kids can hold the Care Bears up to a light to activate the feature, then turn off the lights and watch the Care Bears glow. No batteries are required since the magic is in the fabric. Kids can collect all the Glow-A-Lot Care Bears: Love-a-lot Bear, Bedtime Bear, Wish Bear, and Sweet Dreams Bear, all designed for kids ages 2 and up. Mermaid Magic Princess Sofia
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Winter 2016
Playmates Toys Playmates Toys introduces its new T-Blasts line, bringing the Teenage Mutant Ninja Turtles’ personalities and features to highly stylized blasters designed for kids ages 4 and up. With the Double Barrel and Cross Bow Blaster Assortment, kids can pull back and release to launch two oversized Ninja Turtles character darts, which T-Blasts Cross Bow are made of soft foam. This collection features Double Barrel Leonardo, Double Barrel Donatello, Double Barrel Raphael, and Cross Bow Michelangelo. Each blaster in the Quad-Blaster Assortment comes with four Ninja Turtles character darts. Kids can press the trigger to rotate the barrel, then pull back and release it to launch the darts. This collection includes Quad Blaster Leonardo, Quad Blaster Michelangelo, and Quad Blaster Raphael. The Talking Shell Cannon Assortment features blasters that say more than 10 Turtle battle phrases, and have battle sound effects. Each of these blasters comes with six Ninja Turtles character darts and a cartridge. This assortment includes Talking Shell Cannon Leonardo and Talking Shell Cannon Michelangelo. All of the blasters fire the character darts up to 40 feet. Also included in the line are Ninja Turtles Dart Refill Packs, offered in a variety of characters. The darts are compatible with all blasters across the line and feature kids’ favorite heroes and villains.
Sakar International Sakar International’s new line of Batman v Superman: Dawn of Justice and DC Super Hero Girls youth electronics include kidsafe headphones with a built-in volume limiter, providing safe listening and clear acoustic performance. The ear-cups are lightweight and padded with an adjustable headband for a universal fit. Every superhero needs a stealthy communications device, and Sakar International’s wide range of walkie-talkies keeps everyone in contact with a push-to-talk button and flexible safety antenna for crisp and clear sound quality. Sakar’s new lineup of molded selfie sticks features characters from Bratz, Frozen, Batman, Teenage Mutant Ninja Turtles, and My Little Pony. Sakar will also launch a new line of Smart Watch Cameras. Designed to target fitness goals, the new Bluetooth Fitness Smartwatch tracks steps, distance, and calories burned. They feature a wide assortment of brands, including Hello Kitty, Teenage Mutant Ninja Turtles, Emoji, Super Hero Girls, Batman v Superman, Shopkins, Discovery Kids, My Little Pony, Nerf, Bratz, and Avengers. The new Nerf Camera Drones include Nerf Recon Drone and Nerf Air Defender X Drone Cam Copter. The drones can capture high-definition photos and videos using the built-in 16.1 MP HD camera. Kids can control the camera and see video in real time as they fly from a distance of up to 100 meters. These drones respond quickly with a 2.4GHz radio remote commanding the Nerf Camera Drone drone to move forward, backward, left, right, hover in place, or flip with a 360-degree view. Kids can even fly at night with the Nerf Air Defender X Drone Cam Copter’s 32 built-in LED lights and Wi-Fi streaming capabilities. A quick rechargeable battery allows for 18- to 22-minute flight time.
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Spin Master The Build-A-Bear Stuffing Station, from Spin Master, allows kids to stuff their own characters. Designed for kids 4 and up, the kit will include skins, outfits, accessories, certificates, hearts, stuffing, a key, and a wish maker. Kids can join Dory and her ocean friends in a game of hide and seek with the Finding Dory Magic Picture Search. Each player gets a dive mask that reveals hidden pictures on the game board, and when a character card is turned over, every player must find the hidden character. Secret Life of Pets Home Before Dinner is a two-player tile game in which one player plays as Max trying to build a path back to his apartment, while the other player is Snowball trying to block Max’s way home. In the Disney Moana Race to Tafiti Game, players must work together to get tokens in order to get to the island of Tafiti. Waves can knock players over and cause them to lose tokens, but everyone wins if one player makes it to the end with a single token. The Angry Birds Pig Island Smashdown is a 30-inch game board with three games for kids to play. Kids can set Air Hogs Star Trek Enterprise up obstacles in 24 different ways and then roll Red to knock them down, or play Pig Bowling or Shuffleboard. The Air Hogs Star Wars line now includes the Death Star Battle RC, which comes with an X-Wing quadcopter and a flying Death Star that hovers autonomously ahead. Kids must avoid the Death Star’s attacks and fire back with its own blasters. The Air Hogs Star Trek Enterprise has an integrated light system, more than 10 authentic sounds, and advanced quadcopter technology. It also includes a 50th anniversary collector’s display stand. The Air Hogs Remote Control Batwing has a range of up to 250 feet. It is built with landing gear and includes LED thruster lights for an authentic look.
Sunrights Inc. Sunrights Inc. will work with Hasbro to relaunch the Beyblade franchise. The third generation, known as Beyblade Burst, will feature battle toys with a dynamic “burst” feature, designed to bring more excitement to the play pattern. Battling will trigger the spinning tops to dynamically disassemble, setting the stage for suspenseful competition. The toys will also include a digital component for western markets. The Beyblade Burst animated TV series, currently in production in Japan, will follow a new cast of characters, storylines, and battle drama. Sunrights, the fast growing entertainment arm of Japanese production company d-rights Inc., will handle the distribution of broadcast, merchandising, and promotional rights for Beyblade Burst in western markets, outside of Hasbro’s toy rights.
Winter 2016
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Little Kids With the Peanuts Giant Wand assortment, from Little Kids, kids can blow bubbles with characters from The Peanuts Movie. The Peanuts Snoopy 8oz Bubbles features Snoopy’s iconic doghouse bottle shape, with a Snoopy and Woodstock wand. The Snoopy Action Bubble Blower makes it easy to blow continuous bubbles when kids pull back on Snoopy’s head and a stream of bubbles flies from his mouth. The Nickelodeon Flex Flyers assortment are lightweight, flexible discs that are easy to throw and catch, featuring Marshall from Paw Patrol or Leonardo from The Teenage Mutant Ninja Turtles in full color raised relief. The Nickelodeon Bubble Machine assortment lets kids pour bubbles into the machine, press the button, and watch as the moving wands blow continuous bubbles. Kids can help Chase save the day with the Paw Patrol Action Bubble Blower. Kids press the star on Chase’s pup tag to launch streams of continuous bubbles from his tennis ball launcher. Each bottle topper in the Paw Patrol Bottle of Bubbles assortment is a fully decorated and sculpted 3-D figure head, featuring Marshall, Chase, or Skye. The Paw Patrol Water Squirters let kids squeeze and submerge the water squirter under water, and release to fill, take aim, and squirt. They are available in Marshall, Chase, and Skye styles. Squeeze and submerge the end of the Paw Patrol Water Blasters under water, then pull back on the pup’s head to fill. Take aim and push the head back into the tube to blast the water. They are available in Marshall and Chase styles. Each Paw Patrol Water Sprinkler features a fully sculpted Marshall figure, and blasts water up to 10 feet high. Snoopy Action Bubble Blower
The Bridge Direct The Fisher-Price Classics Village Playset, from The Bridge Direct, is designed for kids ages 2 and up and features a fire station, a post office, and a café. The set includes sliding doors, a ringing siren, a rolling fire truck, and multiple figures. A new line of Mini Arcade games, designed for kids ages 8 and up, feature Pac-Man and Space Invaders. These miniature versions of the originals feature real-time gameplay. The Bridge Direct will also expand its line of Shopkins C3 Kinstruction sets this year, allowing kids ages 6 and up to build the world of Shopkins with multiple-piece construction sets that are compatible with all major construction brands, as well as create their own Shopkins characters. New Shopkins C3 Mini Packs include the Shopping Cart, Checkout Lane, and Frozen Treat Stand. Kids can build these for stand-alone play or add them to larger sets to build a Shopkins world. New shopping packs include the Flower Shop and the Baby Shop. Two new Shopkins C3 Scene Packs include the Fancy Boutique with Polly Perfume, Penny Purse, Prommy, and Beverly Heels; and the Burger Bistro with Fiona Fries, Cheezy B, Soda Pops, and Millie Shake. Shopkins C3 Food Fair Truck lets kids build a hangout spot complete with a mini table and chairs for Taco Terrie, Frank Furter, Millie Shake, and Ice Cream Dream figures. The Shopkins C3 Deluxe Set Food Court is the largest new play set, featuring a pizza parlor and a sushi restaurant. The set includes Candy Apple, Candi Cotton, Suzie Sushi, Little Sipper, Banana Splitty, and Pretz-Elle figures.
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Space Invaders Mini Arcade
Winter 2016
Jakks Pacific Designed for kids ages 4 and up, Ba-BOOM-ies Blind Packs, from Jakks Pacific, feature a hidden Mylar balloon surprise that explodes right out of the blind pack pouch. They feature characters from Marvel, WWE, Minions, and Teenage Mutant Ninja Turtles brands. The Disney Princess Little Kingdom Makeup and Jewelry Collection, designed for kids ages 5 and up, lets kids adorn themselves with jewelry and kid-friendly makeup while collecting Disney Princess Little Kingdom Princess characters such as Ariel, Belle, Cinderella, Jasmine, Rapunzel, Aurora, and Snow White. Tsum Tsum is a collection of Disney characters that kids can collect, stack, and display. Jakks offers a collection of collectible figurines in three different sizes featuring characters from multiple Disney properties. The Black + Decker Power Tool Workshop is an all-in-one workbench that includes a battery-operated drill press, a miter saw, and a bendable flashlight. Kids can use the 75 included tools and accessories to build their own tool caddy. The set is designed for kids ages 3 and up. From the PBS show Daniel Tiger’s Neighborhood comes the Deluxe Electronic Trolley. Designed for kids Disney Tsum Tsum ages 3 and up, the trolley is motorized, has lights and sounds, and features two songs and 12 character phrases from the series. It also includes two figures, accessories, storage space, and a handle for on-the-go fun. The Disney Princess Belle Musical Tea Party Cart, deigned for kids ages 3 and up, features a tea cart that kids can push along as it plays “Be Our Guest” from Beauty and the Beast. The car includes a teapot with a lid, two tea cups, two spoons, and invitations for a magical tea party. With Magical Wand Cinderella, kids can wave the Fairy Godmother’s magical wand to transform Cinderella’s look. Make it Pop is a new high school musical comedy for kids ages 6 to 11 that follows three girls—Corki, Jodi, and Sun Hi—as they come together to form a band. Kids can play out the astronomical adventures of Disney Star Darlings with Star Darlings Starland fashion dolls. Sage, Leona, Libby, Scarlet, and Vega are fully poseable dolls with shimmer skin and sparkly Royal Reflection eyes. The Big-Figs Colossal line, designed for kids 3 and up, will expand with the Teenage Mutant Ninja Turtles Leonardo 48.5-inch figure with five points of articulation, a weapon belt, and two removable ninja swords. Straight out of Halo 5 comes the Big-Figs Massive 31-inch Master Chief action figure. Master Chief has seven points of articulation. Jakks will also have an assortment of Big-Figs based on Batman v Superman: Dawn of Justice, including Batman, Superman, Mech Suit Batman, and Wonder Woman. The Star Wars: The Force Awakens Big-Figs assortment will include 20-inch Rey, Make It Pop dolls Corki, Jodi, and Sun Finn, Kylo Ren, Poe, Storm Trooper, and Captain Phasma figures; as well as a 31-inch Kylo Ren and 31- and 48-inch Stormtroopers. A line of toys based on the upcoming film Warcraft, from Legendary Pictures and Universal Pictures, based on Blizzard Entertainment’s World of Warcraft video game, will launch this year. New figures will join Jakks’ World of Nintendo toy line, including 2.5-inch limited articulation figures from Super Mario Bros., The Legend of Zelda, Metroid, Pikmin, Splatoon, Donkey Kong, and Animal Crossing. New 4-inch figures feature up to 13 points of articulation and include characters from Star Fox and more.
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IAmElemental
Series 2/Wisdom Series
IAmElemental reveals a new collection of female action figures, called the Series 2/Wisdom series. The series, suitable for kids ages 4 and up, includes seven 4-inch articulated action figures based on the “Elements of Power,” powers that already exist within us. The figures include Creativity, Ingenuity, Curiosity, Logic, Exploration, Mastery, and Oblivion. The design of Series 2/Wisdom draws inspiration from ancient Greek and Roman warriors as well as modern superheroes such as Nobel Peace Prize winner Malala Yousafzai and Emily Blunt’s fictional character Rita Vrataski in Edge of Tomorrow. IAmElemental is interested in pursuing licensing partnerships for the brand.
TOMY TOMY will introduce a new line of toys based on the upcoming film Disney’s Zootopia. The Police Station Playset features figures of Clawhauser and Safety Squirrel and a helicopter. Designed for kids ages 3 and up, the play set projects images on the Police Station computer screen and features electronic lights and sounds. TOMY will also expand its Miles from Tomorrowland line with a focus on the series’ second season theme: Galatech. The Galactech Stellosphere is a three-in-one play set that features an XVR system, lights, sounds, and phrases from the show. The Galatech Exo-Flex Arm lights up and bends, making kids feel like they’ve blasted off straight into the series. TOMY will also help celebrate Pokémon’s 20th anniversary this year with 8-inch plush and 2-inch figures of classic characters. Featured Pokémon toys include the Throw ‘n Pop Poké Ball, which pops open upon impact and includes a 2-inch Pikachu figure. The Pikachu plush moves its ears, makes cute sounds, and lights up when kids hug it. The Monster Treads 2X Scoop Tractor joins TOMY’s line of John Deere toys. Designed for kids ages 3 and up, the monster-sized tractor features oversized tires and suspension, as well as a heavy-duty lever that controls the front and rear loaders. The John Deere Battery Operated 6V Gator is equipped with two removable water bazookas, lights, sounds, and an MP3 player. Designed for kids ages 3 and up, this off-road Gator is ready for adventure. The John Deere 7-inch Plush Johnny John Deere Battery Operated 6V Gator Tractor and Friends assortment includes plush versions of Johnny Tractor, Correy Combine, and Callie Gator. Designed for kids ages 18 months and up, the plush feature lenticular eyes and detailed stitching and graphics and connect together for pull-along play. TOMY’s Gear Force Horsepower is a line of stylized vehicles that take preschool vehicle play to a new level with figures, lights, sounds, and accessories. The Police Mustang is ready to stop crime with its engine mods, rear spoiler, and fugitive gripple claw. Complete with lights, sounds, and firing missiles, this Mustang includes the police hero figure and his trusty companion.
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Bandai Bandai America showcases its toy line for the new animated series Miraculous. Bandai is the master toy partner for this CGI-animated TV series, from Zag Heroez, about a young girl who taps into her superhero powers and optimism to save Paris from the evil Hawk Moth. A complete line of toys, including an action figure, roleplay items, plush Miraculous pets, and fashion Ladybug dolls is set to launch this fall.
Cardinal Cardinal will add new licensed games and puzzles to its lineup this year featuring characters from Shopkins, Pokémon, Star Wars, Disney, Marvel, Nickelodeon, Paw Patrol, DreamWorks Animation, Miraculous Tales of Ladybug & Cat Noir, Universal Studios, Warner Bros., and more. The company will also launch a game based on the TV show Shark Tank, in which players must decide if a business idea is brilliant or a bust, and whether they are in or out. Cardinal will launch new takes on classic games, including HedBanz, Toss Across, and Giant Uno. New puzzle offerings include Pixel Puzzles, which combine character pixel art with a puzzle made of plastic bits and pieces. Plus, the company will continue to offer the Top Trumps line of games, featuring The Secret Life of Pets, Finding Dory, Captain America: Civil War, Tsum Tsum, Star Wars: Rogue One, and more. It will also launch Paw Patrol and Peppa Pig activity tins, a new offering designed for kids ages 3 to 6.
Super Impulse Super Impulse’s World’s Smallest toys are designed with the same working functions as the original, classic toys, but in the smallest sizes ever created. The iconic Fisher-Price Chatter Telephone has the same friendly face, movable eyes, bell, and classic red receiver as the original. Kids can take a trip back in time and enjoy the classic Fisher-Price Rock-A-Stack. Just like the original toy, there are five colorful, stackable rings and a wobbly base that rocks back and forth. The World’s Smallest Doodletop features a felt tip pen bottom that draws spirals as you spin it, while The World’s Smallest Sock Monkey has the same woven brown “sock” color, white feet, and red lips as the classic toy. Minions Klippets clip directly to backpacks, clothing, and luggage so that kids can take a little Minion mayhem with them wherever they go. Kids can also find their favorite characters from My Little Pony, Teenage Mutant Ninja Turtles, and Adventure Time in Klippets form, as well as bring back some nostalgia with Rubiks Cube and Etch-a-Sketch versions.
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Tudor Games
2017 Ford Raptor
Tree House Kids Tree House Kids expands its Imagination Adventure Series with the 2017 Ford Raptor. The vehicle features a working tow winch, opening doors, and a tailgate, raising the bar for off-road imaginative play. The toys in this series are built in 1:18 scale which adds to a bigger outdoor play experience for kids.
The National Football League (NFL) Action Figure Set, from Tudor Games, is designed for kids ages 6 and up. The set is available in all 32 NFL teams, in home and away uniforms, offering fans a total of 352 action figures. The set features new game designs and advanced technology to raise the bar of Electric Football. The NFL figures are styled realistically with authentic team colors, logos, and attention to detail. The figures are packaged in a removable tray and can run on electric playing fields.
Tara Toy Tara Toy expands its portfolio of Disney licenses with a tween line of crafts based on the Tsum Tsum franchise. Tweens can create their own wall art, design a keepsake journal, curate a 3-D Tsum Tsum vinyl display, and more. The line will launch at retail this fall.
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Brush Buddies The Shopkins Brite Beatz toothbrush, from Brush Buddies, plays the Shopkins theme song to synchronized lights, and helps improve oral care by making sure kids brush their teeth for the dentist-recommended two minutes. Each Brite Beatz toothbrush features characters on the handle and a comfortable grip. The Shopkins brushing kit works for home, school, or travel. The Shopkins toothbrush cap protects the Shopkins manual toothbrush, keeping bristles clean. The toothbrush cap has holes to let the toothbrush vent and allow any excess water to drain. The Shopkins toothbrush cap has a secret character in each brushing kit. Brush Buddies’ Shopkins bandages contain 20 sterile bandages with four different designs. When applied to dry skin, Shopkins bandages help to protect, cushion, and keep cuts clean.
MasterPieces Puzzle Co. Ty Beanie Boos Garden Buddies 48-Piece Fuzzy Puzzle, from MasterPieces Puzzle Co., is covered in flocking, resulting in a touchable, plush texture. Designed for kids ages 4 and up, the 21- by 15-inch puzzle features two Beanie Boo buddies. The Ty Beanie Boos 36-Piece Fun at the Park Floor Puzzle features special die-cut Ty-shaped pieces. The puzzle measures 3 by 2 feet when complete, features seven Beanie Boos friends, and is designed for kids ages 3 and up.
CPK Baby So Real
Wicked Cool Wicked Cool Toys’ licensed portfolio involves new Girl Scouts-inspired role-play toys, including the Girl Scouts On-The-Go-Wagon and Girl Scouts Selling Stand. The Cabbage Patch Kids line expands with new kids and pets, including CPK Baby So Real. This 14-inch interactive lifelike doll comes with a bottle and offers digital and traditional play patterns. CPK Baby So Real has color LCD-animated and expressive eyes; an accelerometer that allows the doll to know where it is; sensors in the forehead, back, diaper area, and feet for play response; vibration for feedback; baby sounds; and Bluetooth capabilities; and more. Kids can also play with the baby in the virtual world with the Baby So Real app. Kids can interact with the baby in the virtual nursery with the food, play, and sleep modes, and offline mode allows kids to play with their baby without using the app. Earn points to open new features of the app, mini games, and more. MasterChef Junior line will expand with new cooking sets, including Cooking Essentials, Pizza, Breakfast, Baking, and Burger. Each kit includes real cooking tools, recipe cards offering healthy alternatives, and plating suggestions to elevate kids’ dishes.
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Imports Dragon
Shopkins Plush Toy
Imports Dragon’s Shopkins plush toys let kids cuddle with their favorite Shopkins characters. Made with super soft material, they come in multiple sizes and varieties. The 3.5-inch Plush Hangers are soft characters attached to a small, plastic clip. The 4.5-inch key chain plush are great for attaching to backpacks and purses. Each plush is designed for kids ages 5 and up. The Major League Baseball (MLB) series of 6-inch collectible figurines include Jacob deGrom, Josh Donaldson, Zack Greinke, Kris Bryant, Carlos Correa, and many more. Imports Dragon will also introduce its line of 6-inch and 2.5-inch National Hockey League (NHL) figurines. The replicas will represent 86 NHL players with realistic details. The players include Connor McDavid, Henrik Lundqvist, Corey Perry, and Sidney Crosby. The new hockey game lets collectors of the 2.5-inch NHL figurines put their players into action. The object of the game is to score five goals with the help of figurines that players can get through a starter set or in individual packs. The starter set includes three figurines, six dice, a game mat, and an instruction booklet.
Cartoon Network With a new animated series produced by Cartoon Network Studios and a full worldwide licensing program set to launch this year, The Powerpuff Girls are making a comeback. As master toy partner for the brand, Spin Master will launch a line of plush, figures, play sets, dolls, and role-play items at U.S. retailers this fall. Designed for kids ages 3 and up, the Deluxe Flip to Action Playset is a two-in-one play set that transforms from the girls’ bedroom to their superhero lab and includes 2-inch Bubbles and Professor Utonium figures. Additionally, the Aura Powerpods with 2-inch Doll Assortment puts The Powerpuff Girls’ new Aura powers at the center of playtime. Each pack of Aura Powerpods includes a translucent aura power vehicle and a 2-inch figure of each girl, along with a 2-D villain character. The vehicles have a The Powerpuff Girls pullback feature that lets them zip around or break through walls. Designed for kids ages 3 and up, the packs are available with Bubbles/Bunny, Blossom/Stapler, and Buttercup/Cannon. The Vectron Flying Powerpuff Girls Assortment lets each girl fly with the power of her spinning light trails. Each set includes a heart-shaped charging base and is designed for kids ages 5 and up. Cardinal Industries will create a full range of puzzles based on the characters and stories from the new series. Launching this fall at all retail channels, the line will be available for fans of all ages, with additional details and designs available in the coming months. In addition to its full assortment of Halloween costumes for kids, teens, and adults, Disguise will offer a line of role-play items focused on dress-up apparel and accessories inspired by The Powerpuff Girls. Available across all retail channels this fall, the collection includes dress-up sets, jewelry, makeup, wigs, and more. Bubbles, Blossom, and Buttercup will also make their vinyl toy debut through a new partnership with Funko, which will offer Pop! Vinyl figures, Mystery Minis blind boxes, a My Mojis collectible line, and Dorbz figures. The line will debut at Comic-Con International San Diego in July. Pressman Toy Corp. will produce a line of original board games, card games, and puzzles based on the franchise, which will be available throughout North America beginning in the fall.
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Licensing 101
WHEN IS THE RIGHT TIME TO JUMP INT O LICENSING?
by Jim Sachs, partner, Harris-Sachs LLC Licensing
I
s anytime the right time to get involved in licensing? Definitely not. As a matter of fact, jumping in at the wrong time could hurt your company’s existing business rather than help it. Over the years, many companies have approached me to request licensing help. It’s pretty tough telling them that they’re not ready. It means turning down business for me, but it’s better to be honest than unrealistic. Addressing the readiness of smaller companies is particularly critical considering there is very little room for error. Generally, these companies are just beginning to generate sales traction. They have the notion that taking a license will instantaneously accelerate their growth. The reality is that you can’t just leapfrog over all the growing pains and learning curves necessary to establish a strong foundation and assume that license acquisition at this point will prove instantaneously successful. Starting at the top and working down, retroactively developing all the tools—including the sales force, marketing, resourcing, manufacturing, and distribution—that are necessary to support growth through licensing is a flawed plan. Additionally, a company has not yet fully developed its own identity in the marketplace in its early stages. By taking a license too soon, the company could prematurely tie its core product line to a new identity during its most critical stage of growth. A company could enter the marketplace with the unrealistic idea that the license, by virtue of its cache, will automatically sell into major retail channels of distribution. And then, what happens if, by chance, it does? Does the licensee have the financial wherewithal to support high volume business? Does it even have the physical resources to support rapid growth? By the time the company realizes its predicament, it could collapse under the financial weight. Now, it
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destroyed its original vision. For example, let’s say that the company initially developed a product line aimed at specialty store distribution. Here they could gain controlled, slow growth, but with a license, could find themselves forced to chase unrealistic business over a short period of time to support the license metrics. What happens if the license isn’t properly vetted? Maybe, after signing the agreement and going to market, the company realizes it’s not a good fit after all and total catastrophe ensues. What if its expectations are unrealistic and the properties the company thought it would be able to secure are not interested? From the licensor side, what major property is going to issue a license to a company that is too small and not established? As the people at Disney would tell me, “We’re not in the business of putting people in business.” The answer to licensing timing is careful, strategic planning with diligent deliberation and introspection. What exactly does the company expect a license to achieve? Is everything in place and operating smoothly, such as sales, marketing, production, and distribution? Do the financials support a licensing effort, and an advance, guarantee, and sales effort needed to sustain the company for many months? Finally, is the company doing it all on its own or does the company possess acumen enough to retain outside help, including direct experience understanding not only the licensing world but also manufacturing, sales, marketing, and distribution? Timing is everything. Being ready helps to reduce •••• the risks. Jim Sachs has 30 years of licensing business experience and 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.
Winter 2016
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Property Profile
THE GOLDEN AGE OF PEANUTS IS NOW P
Flying Ace Snoopy, from Just Play
eanuts, the globally beloved brand created by Charles Schulz in 1950, enjoyed its biggest year to date in 2015, a year that also marked the 65th anniversary of the Peanuts gang. The brand—which enjoys an unprecedented 99 percent consumer recognition and 3 billion social media impressions annually—created its biggest U.S. retail footprint ever, with programs at Target, Toys “R” Us, Macy’s, The Gap, Pottery Barn Teen, Safeway Albertsons, Barnes & Noble, and QVC; halo partners such as Le Sportsac, Coach, and Burton; and promotional partnerships including McDonald’s, Teleflora, U.S. Postal Service, and Unicef. The Peanuts Movie, the brand’s first-ever 3-D CGI-animated feature film, became the No. 1 family film in the world for three consecutive weeks. Peanuts’ global licensing program, featuring more than 1,000 licensees worldwide, continues to be anchored by longterm partners including MetLife, Hallmark, Cedar Fair, ABC, and Universal Studios Japan. In particular, 2015 was a banner year for Peanuts toys, with Happy Dance Snoopy feature plush leading the charge. As 2016 takes off like a Flying Ace, a wealth of exciting new content and marketing programs promise to create vast opportunities for Peanuts licensees and retail partners worldwide. A series of new animated shorts based on the Peanuts comic strip will begin airing in the U.S. on Cartoon Network and Boomerang this year. Toy licensees are developing products in key categories, including figures, play sets, plush, feature plush, crafts and activi-
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ties, games, puzzles, vehicles, R/C, and seasonal toys. “This is the most exciting time for Peanuts in years,” says Leigh Anne Brodsky, managing director, Peanuts Worldwide. “Between the creativity of the movie, the celebration of timeless Peanuts milestones, and the fun marketing events we have in store, it’s truly a golden age of Peanuts.” Of course, Peanuts means kids and kids mean… toys! The 2016 toy line features fun and innovative new products from: • Just Play, featuring TV-driver Flying Ace Snoopy feature plush, Snoring Snoopy feature plush, and a new line of Peanuts blind bag figures, plush, and figure sets celebrating The Many Faces of Snoopy, including Flying Ace, Masked Marvel, Flashbeagle, and Joe Cool. Back by popular demand, Happy Dance Snoopy will also be available next year, the 60th anniversary of Snoopy’s happy dance! • Little Kids, including Peanuts bubble toys and bubble wands. • Ao Jie featuring junior sports seasonal toys, such as bowling sets, racquet sets, flying discs, and jump ropes. • Palamon, including updated Peanuts character costumes for infants, toddlers, children, and adults. • Cra-Z-Art, featuring the best-selling, newly redesigned Snoopy Sno Cone Machine, originally introduced in 1979 and named by Time magazine in 2011 as one of the 100 best toys of all time. • Sakar, including youth electronics, including selfie sticks, flip cameras, Bluetooth speakers, and walkie talkies featuring the Many Faces of Snoopy artwork. “In 2016, we’re proud to celebrate Schulz’s creation with an array of content and products that capture the magic of the Peanuts gang in brand-new ways. We invite licensees from around the world to join us and be part of the magic of Peanuts,” says Brodsky. ••••
Winter 2016
Property Profile
The scent of success S
trawberry Shortcake, the original doll with the sweet scent, continues to delight girls of all ages as she wraps up her first year with her new owner, Iconix Brand Group. Strawberry Shortcake and her signature scent celebrated another holiday season last year. Strawberry’s toy licensee, The Bridge Direct, launched a vintage program that capitalizes on the popular retro trend that has taken over the toy aisle in recent years. This past holiday season, the retro-style 35th anniversary 6-inch Strawberry Shortcake doll—which will look familiar to many of today’s moms who grew up with the beloved red-headed doll—was the top performer on a Target retro endcap. For fall 2016, The Bridge will continue to promote the nostalgia of the brand, with an expanded line of vintage toys, including Then & Now Doll Assortments, which will feature Strawberry Shortcake, Blueberry Muffin, and Raspberry Torte in both their 1980s iterations and today’s look, and a retro three-pack that will include Strawberry Shortcake, Lemon Meringue, and Lime Chiffon. The Bridge will also expand its vintage ragdoll line to include Lemon Meringue and Raspberry Torte. Iconix is excited to announce that Funko has signed on to produce a line of its popular and collectible Pop! Vinyl figures based on the vintage look of the dolls, reimagined for the Pop! aesthetic, as well as a line of Mystery Minis. These collectible figure lines will be released in the third quarter of this year. Success in the digital sphere has long been a part of the Strawberry Shortcake strategy, anchored by the brand’s partnership with Montreal-based app developer Budge Studios. Strawberry’s extensive app library has seen more than 86 million downloads to date and is the No. 1 Girls iOS brand for the last three quarters. Candy Garden, the first of four Strawberry
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apps that Budge will release this year, debuted in January. The first season of “Strawberry Shortcake: Beyond the Box,” aired on the brand’s YouTube channel at the end of 2015. The humorous, 1- to 3-minute shorts feature the doll line in clever, stop-motion animation. Season two, which will feature even more antics, will premiere this spring. Strawberry Shortcake’s YouTube channel boasts more than 27 million minutes watched per month. Strawberry Shortcake continues to see international success, particularly in Latin America. Habibs, the quick-service restaurant in Brazil, featured Strawberry Shortcake friendship jewelry premiums in its kids’ combo meal from November through February. Brazilian fast-fashion giant Riachuelo will launch its second collection of girls outerwear in April. “Since taking over the stewardship of the Strawberry Shortcake brand, we feel confident that we’re in a good place to revitalize and take the property to a new level,” says Carolann Dunn, vice president of licensing for the Iconix Brand Group entertainment division. “Strawberry Shortcake is rich in art and story, has a proven play pattern for success in girls toys, and is the only girls brand with a signature scent and flavor profile. We are excited to leverage her brand attributes on a line of consumer products, promotions, and halos that are organic to the brand, while simultaneously developing new and compelling content for girls on channels, platforms, and screens where they consume.” ••••
Top: retro 6-inch doll Bottom: retro soft doll, both from The Bridge Direct
The Licensing Book • 45
Hot Shots
Sony Pictures Consumer Products The Licensing Book talks with Sony Pictures Consumer Products’ (SPCP) Mark Caplan, senior vice president, Global Consumer Products about the company’s licensing strategy moving into 2016.
Congratulations on your recent promotion! What is your vision for the consumer products division? What are your long-term and short-term plans? It’s a benefit to our consumer products business to have a studio behind us that is a leader in filmed entertainment. We collectively have a long-term mentality in developing our consumer products business in concert with many other areas of Sony Pictures Entertainment. Ghostbusters is certainly one of the keys to building our business in the coming years ahead. We will introduce more content during the North American International Toy Fair in New York City, which will enable our ongoing efforts in consumer products.
Ghostbusters figures, from Mattel
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You’ve managed the Ghostbusters brand for more than 10 years. What are your plans for the franchise as we gear up for the new film to hit theaters this summer? We have a strong group of consumer products partners and retailers getting behind our efforts. Categories such as toys, apparel, publishing, mobile games, and back-to-school are all going to be available in the weeks leading up to the film’s release in July. How are you addressing fans both new and old with Ghostbusters consumer products? Our consumer base is quite expansive. It started with fans that grew up with the films and the animated TV shows. Products were developed with them in mind. Companies such as Lego, Mattel, Funko, and Atari all hit the mark and have created product perfectly suited for those uber fans and collectors alike. With the upcoming 2016 film, we are now moving the product into the mass market, targeting the younger generation who probably have heard about it from their parents or have seen it running the dozens of times per year on TV. How important is the international box office to the film launch? This will be a key to our success as we continue to build Ghostbusters into an ongoing licensing business. We have high hopes for the property in many countries where the overall film box office strength will help propel the success of the prop-
Winter 2016
Official character photo of the new Ghostbusters movie cast. The film opens on July 22.
erty. This will allow for us many more opportunities to grow our consumer products business. What is your strategy for identifying and expanding in key areas of growth internationally for SPCP overall? As a global company, we have theatrical marketing offices in all major markets. This allows us to work cooperatively with our local staff. In terms of growth, we have a strong network of international agents that is helping us build consumer products programs and identify new opportunities. What’s new in the area of location-based entertainment for SPCP? This is certainly a growing area of our business. In fact, we have a couple of parks underway in Dubai and Russia, and are in discussions for another in China. In October of this year, Dubai Theme and Resorts will open Motiongate, a massive theme park that will house our Sony Pictures Studio location with seven
Winter 2016
themed attractions based on Ghostbusters, Cloudy with a Chance of Meatballs, Hotel Transylvania, and The Smurfs, to name a few. How important is the growth and relevancy of an interactive gaming strategy for your franchises? It’s been an important area to our group for many years. It’s where I cut my teeth in the licensing business, going all the way back to the 16-bit era, when licensed games really started to impact the console business. We’ve traveled a long way since that time, and we are very involved in PlayStation 4 and the next generation consoles, mobile, and virtual reality platforms. What is planned for The Smurfs? The Smurfs are an important ongoing business for SPCP. With another movie releasing in March 2017, we continue to develop new licensing partnerships. Jakks Pacific, Simon and Schuster, Rubie’s Costume Co., and Ubisoft are just some of the partners we have in our stable of licensees for the upcoming movie. ••••
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Spotlight On...
AMASSING AN ARMY OF DIGITAL INFLUENCERS
FOR SOCIAL GOOD AND THE GOOD OF THE BRAND
by Debbie Dunn, American Greetings account executive, GennComm
W
ord of mouth used to be two neighbors talking over a picket fence, two ladies in line at the grocery store, or a conversation at a PTA meeting. While discussions about goods and services still happen the old fashioned way, today’s word of mouth has also gone digital via online influencers—and it’s louder than ever! Today, the women and men who started blogs 10 years ago have evolved into specialized journalists, who are masters of copy, photography, photo and image editing, video production, social media marketing, search engine optimization, advertising, email and affiliate marketing, and sales. In essence, bloggers have become masters of their own domains. And as brand owners, we all want them by our sides to help us engage Top: Zach Kaplan of ZachKap Cares arranged for the donation of 400 consumers with an Care Bears to needy children in 2015. Bottom: Digital influencers take open dialogue about the Share Your Care Ambassadors pledge at Blogger Bash 2015. our products and
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brands. In the business of licensing and children’s entertainment, these digital influencers (as we now refer to them) help us to connect with families—especially moms. Moms are the gatekeepers in most families. They are the purveyors of 85 percent of all household purchases. They are, for all intents and purposes, the Chief Household Officers (CHO). American Greetings Entertainment has taken the concept of partnering with digital influencers seriously with its property Care Bears; amassing an army of nearly 300 Care Bears Share Your Care Ambassadors who help disseminate Care Bears information and news to their followers on a regular basis. In order to successfully build this program, we decided to focus on the heart and soul of the Care Bears brand. From the beginning, the Care Bears’ core values have included caring, sharing, love, kindness, cheer, and teamwork. Instead of trying to be everything to everyone, we decided to own the core attributes of the Care Bears to attract the right digital influencers and worked to meet them where they live: online. By connecting with the hundreds of thousands of followers on Facebook, Instagram, Pinterest, Twitter, and YouTube, we have been extremely successful in not only pushing out the Care Bears message, but actually having a conversation with fans (including digital influencers) each and every day, socially snuggling up to them anytime, and anyplace. Care Bears puts its money where its mouth is with the brand, donating plush bears and other products to needy children on a regular basis. Just recently, the Care Bears helped children via Spark of Love, ZachKapCares,
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Operation Smile, and enAble charities. Last May, the Care Bears unveiled the Share Your Care campaign with an online video contest marketed on Facebook, Twitter, and Pinterest. Fans were invited to show the Care Bears how they share, care, love, or help those around them every day. The contest received more than 19 million media impressions and was the start of a caring and sharing movement that had a lasting effect on fans. The grand prize winner of the contest, Lee Nakamoto and his family, donated 100 percent of their monetary winnings to Nepal Earthquake Relief Efforts. In July, American Greetings Entertainment took Share Your Care to the next level, hosting a breakfast at Blogger Bash 2015 in New York City, where they invited top-tier digital influencers to raise their right hands and take the Care Bears #ShareYourCare oath to become official Care Bears Ambassadors, promising to “make the world a better place,” and “spread the Care Bears message of sharing and caring” to their readers. The result: an army of nearly 300 do-gooders for the Share Your Care cause. Continuing with the pay it forward message on September 9, the Care Bears enlisted its arsenal of good Samaritans to spread the message about the first National Care Bears #ShareYourCare Day (an official holiday on the National Day Calendar), and encourage readers worldwide to give back to others and the community. With the help of the ambassadors, the Care Bears were able to motivate the public via blogs, social posts, and a highly successful Twitter party generously donated by Bloggin’ Mamas, which resulted in #ShareYourCare trending nationwide. The Care Bears were also able to collect humanitarian stories and anecdotes from ambassadors and
Winter 2016
their fans along the way. For example, retired school teacher Beth donates school supplies to local schools; Karina makes holiday cards for strangers and puts them in mailboxes just to spread cheer through the season; Katie keeps supply kits with food, water, and a blanket in her car to hand out to homeless people; Ludick volunteers for beach clean-up efforts; Susan visits nursing homes to show friendship and respect to the aging population; and Drew and his children collect toys for local toy drives. The list of philanthropic endeavors fans are willing to share with Care Bears goes on and on. So far, Care Bears Share Your Care Ambassadors have initiated more than 80 million impressions in the name of Care Bears and #ShareYourCare. The support for the Care Bears Share Your Care movement has been truly astounding. These men and women are dedicated to both the brand and their newfound power to share the love with their readers. Ambassadors are also motivated by the idea that a brand like Care Bears can be a force for good and not just for profit. The Care Bears started a movement with the help of digital influencers to motivate the public with a positive message in line with the core attributes of its brand. So far, the message has helped drive serious engagement and expansion of Care Bears’ social channels and online chatter month after month, growing the brand one good deed at a time. •••• Debbie Dunn is the American Greetings Entertainment account executive at GennComm, which is a communications, strategy, and connections agency focused on toys, children’s entertainment, licensing, and consumer products.
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Art Licensing
and fine art licensing The Licensing Book chats with Choice Collectibles’ CEO and President Ari Goldman, and Senior Vice President of Business Development Ben Berman, about officially licensed fine art in the world of pop culture.
Tim Rogerson’s Heroes
Tell me about Choice Collectibles and your relationship with Disney. Choice Collectibles was started about 18 years ago, and we started off as a company that bought and sold original animation art, which is artwork that was created as a bi-product to the animated cartoon and film process. Then, we started to sell limited editions, and since those were found on gallery walls all over the world, they were interpreted as fine art. As an evolution of the company, we went to lots of comic conventions where we found comic book and pop culture enthusiasts and we started to deal in superhero art. With Disney, unofficially, the first things that the company was selling were the original pieces of art that were produced at The Walt Disney Studios, most of which I would buy from auctions. So personally, I’ve loved them my whole life, and that’s where the relationship started. As a gallery, we were Disney fine art distributors for the past 15 years. We had a contractual right to sell art that was being produced in today’s day and age. Then, about four and a half years ago, we signed a direct contract with Disney Consumer Products that enabled us to become the fine
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art licensee for Marvel. How closely do you work with Disney? What is the process for taking a piece from concept to retail? We interact with Disney every week on some level. There are two things that are primarily going on: We have interpretive art, and then we have art that pre-exists in their database, such as covers of older comics, which we call style guide art. For covers, if we decide we want to print a new Iron Man cover, then we go into the system and search for an Iron Man cover, we choose two or three that we think would interpret very well when we print them, and we submit them to the first line of gate-keeping. We can submit anything we want, but the Marvel “gatekeeper” is so entrenched in the system that he’ll get back to us with approval within the same day. On the interpretive side, we have a bunch of different artists who submit images that they think would be great as fine art. They can come up with something in pencil on their own, or we have a concept that we come up with and request. Then we submit it to the gatekeeper, and if he likes it and thinks it’s good, then we tell the artist to paint it in color. So it’s like they show us a blueprint, and if the blueprint is good, we let them build the building. Marvel has a legal department and a publishing department, so they make sure there are no crossovers. Having a close relationship with them is paramount. They are the ultimate fans. They know things that even uber fans like us may not. The degree of detail is pretty staggering. It makes an interesting landscape to navigate when it comes to licensing.
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How do you find your artists? We get new artists in all types of organic and inorganic ways. We get recommendations from Marvel on artists that they feel strongly about—and those artists don’t just necessarily have to be artists for comic books, they could be art directors on the films. We’re constantly combing large events like San Diego Comic Con where there are Artist Alley areas, and we’ll go and see if we can find some new talent that has yet to be discovered. We also look around for artists who we feel are incredibly talented in other categories that we think will crossover well. We got to know Tim Rogerson on our Disney portion of our distribution. He was doing Disney fine art, we met him through our Disney fine art publisher, we got to know him, and he expressed interest in Marvel fine art. We love him to death, and we asked for some pencil drawings to show to Marvel. We loved them, and Marvel also loved them. His art is amazing, and he is such a warm, lovely person, and that shines through. A fan’s eye is paramount in what we do, and what’s exceptional about Tim is that he is a massive Marvel fan, so even in his very interpretive, less-conventional, Picasso-esque, Cubist representation, you’ll still see features like facial expressions, poses, or other aspects of the character that remain true to form. Let’s go back to Artist Alley areas at comic conventions, which feature hundreds of independent artists selling unofficial prints and commissioned works. Does this present you with any challenges? It presents us with a constant conundrum. These prints are not officially licensed like ours, and they don’t have the constraints and the responsibilities and guarantees that we have. I feel like there is sort of an unfairness that’s inherent, but there’s always a sentimental compassion for the struggling artist. It’s something I don’t really like or care for, and it is something we discuss with Marvel on a quarterly basis, but they also have that little bit of compassion because these people are artists, and artists are what Marvel and Disney were built on. It does exist as a problem; I am certainly not an advocate of it, and I am certainly not happy about it. What we try to do is find the really great ones and make honest artists out of them.
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How do your prints differ from what someone would find in Artist Alley? We differ tremendously. The quality of what we print is the highest quality available on canvas and on paper. Everything we print is guaranteed and licensed by the full weight of the Marvel company. Everything is numbered, and everything is fully certified on a certificate that is also guaranteed by the Marvel company. What you’ll find sitting on those tables is a cheap, inauthentic print that has no license, no copyright, no certificate of authenticity, no numbering, etc. It is a print of a character, but it is not a fine art print. We are fans, so we see the art and we love art. It’s not like we don’t have eyes—we see it and we can appreciate it, but we have all of these factors that make our art so special. The licensing hurdles we have to jump over are worth it, because we have the full weight of Marvel behind us.
Champions Mighty Mini Canvas Wrap
Do you do anything that’s mass-produced? We do, because we’re working with some of the biggest distribution networks in the world. We recently started working with GameStop, and when we first started to work with them, they said, “We need to cover all of the different price categories.” The first price category we offered them—which we were already selling in the Disney theme parks—was the $50 lithograph, which comes matted and has a Marvel block on the front. And even that is numbered, copywritten, and comes with a beautiful certificate of authenticity stuck right on the back of it. Even if it’s not signed and it’s a $50 item, we believe strongly in the value proposition offered to the collector. Nothing is just a print. ••••
The Licensing Book • 51
Outside the Box
Leveraging Licensed Visual Design in Retail Environments by Ted Mininni, president, Design Force Inc.
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s design consultants, we place our emphasis on developing package design systems that tell the brand story with a unique, ownable aesthetic. We conduct pre-design research—analyzing competitors’ package designs before developing unique concepts to make our clients’ brands stand apart—but three major factors, while not new, have grown to a point of critical mass. First, retail environments have maxed out assortments in every category, making the purchasing process more complicated for consumers. Second, retailers compete directly with manufacturers’ private-label brands in increasingly sophisticated packaging. Third, many retailers have cut employee numbers and hours, so that stores have essentially become self-service, increasing perception among consumers that the fewer salespeople present are less competent and knowledgeable about products. These considerations, and the fact that competition is chasing fewer consumer dollars, have put the onus on us to think about more effective ways to leverage package design. Given all of this, influential retailers are playing a role in determining final package design, which is traditionally something that manufacturers would do on their own. But now, retailers want more than effective packaging; they need and want our help to expertly merchandise branded products. We are charged with not only developing packaging style guides, but also with merchandising aids to assist sell-through at retail.
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The Licensing Factor Consumer product brands enjoy an advantage that licensed brands do not: They are usually merchandised within one category, so that packaging can be developed to effectively segment individual offerings within product lines, making them easy to shop for while presenting a consistent brand look and feel. Since retailers merchandise brands in blocks, they are more effective at attracting consumers’ attention. This is not always the case with licensed brands. The challenge is to make the branded property stand out for its fans with consumer product offerings in multiple categories across retail environments. The merchandising of licensed properties—planograms, endcaps, and point of purchase (POP) displays—might sound conventional, but we can design them in ingenious ways to delight consumers. We should present the perfect scenario of a full complement of available licensed products within a category, which most retailers aren’t likely to fully adopt, but the visual impact can hardly be denied. We can also show cross-merchandising ideas to give the licensed property more presence in stores. Store-within-store or in-store boutique concepts deliver the full power of the property and optimize sales potential. Retailers should see visuals of these concepts, along with more modest footage, end caps, and POP displays. This is important in several ways. Merchandising tools show retailers and licensees that the licensor is fully committed to partnering with them to sell consumer products. Visual concepts “sell” retailers, exciting them and making them want to commit to the licensed property—at the exclusion of others—because they feel as though they are being fully supported. When design consultants are able to show visuals depicting merchandised assortments, it creates additional value for the licensed brand. Since
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Outside the Box
few retailers are merchandising the hottest licensed properties in store-within-store boutiques due to space constraints, we can demonstrate that there are other ways to help them maximize sales. Merchandising visuals lead to discussions with potentially valuable insights and new ideas since retailers are closest to the consumer. Since we are the professionals who are designing licensed product packaging, we should also create concepts for banners, POP displays, cross-merchandised displays, and end-cap designs. Otherwise, visual merchandising aids might not be consistent with the unique aesthetic and package design systems that are developed, and that simply shouldn’t happen. Consistency is vitally important. When pains have been taken to develop optimal package design solutions that leverage the key visual and verbal assets of the branded property, they should likewise be an integral part of display systems.
Leveraging Entertainment Assets Whether virtual or real, many of the most significant licensed properties come from the worlds of entertainment. When we identify the key visual assets that fans find most endearing, these properties can come
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alive—and they really have to if we’re going to be able to grab the attention of consumers who are bombarded by countless visual stimuli in retail stores. Capturing the personality of a property elicits immediate recognition and an emotional response. We can leverage visual elements to surprise and delight; we can infuse humor and fun, action, or energy, making the shopping experience an extension of the entertainment associated with the property. We shouldn’t rely on imagery of the property alone. Using the magic of storytelling based on the property’s characteristics, philosophy, and backstory is compelling. Both packaging and merchandising visuals give us valuable opportunities to do these things and connect with fans of the brand. When working directly with licensors to develop their property’s packaging program, we discuss the importance of unifying all of the significant visual and verbal brand elements in packaging with the creation of merchandising tools in a cohesive manner. Package design architecture, color palette, fonts, imagery, and important brand communication can be standardized within a packaging program style guide. Then, we can demonstrate how those assets can be leveraged to create banners, POP displays, store signage, and cross-merchandised, dedicated store footage. But how do manufacturers get retailers to commit to dedicated shelf or floor space for a licensed property? Suggesting to them that they will benefit from increased foot traffic in their stores and reap higher sales in the current competitive environment with dedicated physical space that they might rotate in the future—a “Red Hot” section—whether that means 6 feet of shelving, an end cap, or floor space—and showing them how cross-merchandising products for a specific licensed property can spike their sales makes them think. Creative ideas that show ways in which to maximize assortments in limited space matter to retailers, as well. Our packaging program design for a legacy property, Thunderbirds Are Go, illustrates these points perfectly. ITV Studios asked us to develop the licensed packaging program to support the new animated series based on the 1960s TV Supermarionation adventure series that was an instant hit with kids who were enthralled by new technologies and space travel. Fifty
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years later, the newly retooled ITV Studios series combines computer-generated characters and craft with live-action sets to put a modern twist on the storyline from the original series. The storyline centers around five brothers: John, Alan, Gordon, Virgil, and Scott Tracy, collectively known as International Rescue. Each brother has his own special role and area of expertise. Together, they take on missions to foil bad guys on a global scale, protecting Earth and its citizens with the help of high-tech craft specific to each brother’s capabilities. The Tracys operate from their home base, Tracy Island, located in an isolated area of the South Pacific. Original characters Grandma Tracy, Colonel Casey, Lady Penelope, and her butler, Parker, return, along with Brains, the irrepressible inventor. New characters also appear in the new series, which stays true to the iconic story, yet benefits from contemporary updates. The Tracy brothers now have slick new uniforms with utility belts replacing their sashes, and the TB1 through TB5 vehicles have also been overhauled. The new series unfolds in the 2060s with high-tech gadgetry undreamed of in 1964 to dazzle modern audiences. Color plays a dominant role in identifying each of the Tracy brothers and their craft, so our design solution leveraged it for the packaging program. By using vertical colored striping as the package design architecture and CG illustrations of the lead characters, past fans of Thunderbirds Are Go, as well as a new generation of kids, hone right in on licensed merchandise packaging in retail stores. Additional visual cues include a gritty metal texture as an overall background, similar to that of the Tracy craft. The product field is based on the design of the Tracy brothers’ user interface technology superimposed over imagery of Tracy Island. Individual products are highlighted through inserts featuring character and craft-specific colors. Showing examples of package structures with window box panels and die-cut blister cards help to guide licensees as they package their own consumer products. Upon completion of the Thunderbirds Are Go packaging program design, standardization guidelines were created for licensee partners to leverage in the implementation of their licensed product packaging. The guidelines clearly highlight all package de-
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sign assets, their proper usage, and the role of meaningful color within the package design system, while 3-D- and exploded-view packaging templates explain how these assets work together in a modular fashion to accommodate a variety of packaging formats, including an elaborate and standard blister card, closed box, window box, and hang tag, as well as a belly band and sock rider. Also covered in the standardization guidelines are examples of POS materials, including free-standing and countertop displays, endcap and aisle headers, blade arms, floor graphics, and ceiling hangers to assist retailers in merchandising Thunderbirds Are Go products effectively to drive strong sales. Most importantly, fans are sure to zero in on consumer product packaging and merchandising that speak directly to them.
The Last 5 Percent Point of purchase is so important that wise marketers cite the adage: Success or failure depends upon the final 5 percent of effort to reach the consumer more than the 95 percent that preceded it. That last 5 percent will either prompt consumers to buy, strongly influenced by an emotional reaction to a brand or a licensed property, or to walk away because they can’t quickly identify it and be moved by it. Presently, licensing design programs shouldn’t begin and end with a library of product and package design assets; they should extend to the retail merchandising aids that are necessary to sell the property through to ensure success. •••• 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 • 55
Of Counsel
Licensee Strategies: Moderating Minimum Guarantee Risk
Licensing 101, Part 79 by James Kipling, Of Counsel This is the 79th 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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s discussed previously in this series, licensors routinely demand a Minimum Royalty Guarantee in connection with any significant grant of rights, almost without regard to what category of licensed property or licensed products may be involved. To compound the risk for licensees, these guarantees are frequently divided into segments and the segments are not permitted to When so divided, be “cross-collateralized.” a licensee is put at One example discussed previously involved a multirisk to the extent year license term, and the that its sales might licensor had divided the fluctuate significantly guarantee into portions recoupable only against royfrom year-to-year alties generated from sales during the life of the during each of the respective agreement.” years of the term. When so divided, a licensee is put at risk to the extent that its sales might fluctuate significantly from year to year during the life of the agreement. Generating royalties below the minimum in one year would require a “makeup” payment of the deficiency at the end of that year; while generating royalties above the minimum in another year would not result in a credit against the
”
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prior year’s, or a subsequent year’s, deficiency.
Other Bases for Division In addition to dividing the Minimum Royalty Guarantee by increments of time, the licensor also may seek divisions among portions of the licensed territory, divisions among “channels of distribution,” or allocations among the granted categories of licensed products. Each time the Minimum Royalty Guarantee is parsed in this fashion, unless the individual portions are permitted to be cross-collateralized, the licensee is put at greater risk of not being able to recoup, or “earn out,” its guaranty. In order to moderate its risk, it would be wise for the licensee to carefully analyze each division the licensor seeks to impose, and estimate its ability to meet each discrete portion of the guarantee. Unless it is extremely confident that it will achieve each separate “minimum,” the licensee should prepare to pose arguments against any such portions that appear to create significant risk. This exercise can be as significant as negotiating the total Minimum Royalty Guarantee itself, because failure of the licensee to earn out such subdivisions can result in an effective guarantee that can be several multiples of the negotiated total of the guaranty.
Territorial Allocations It is easy to understand why a licensor would seek a commitment from its licensee to exploit its rights aggressively within each important country within
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Of Counsel
the licensed territory. However, this reasonable premise can be pushed to unreasonable extremes. Typically, a grant of rights for North America may result in a division of the total Minimum Royalty Guarantee in fractions of approximately 90 percent for the U.S. and 10 percent for Canada. If, for example, the total guarantee is $100,000, then $90,000 can be recouped only against royalties generated in the U.S., and $10,000 only against those generated in Canada. If sales in the U.S. were to result in royalties of $280,000, and those in Canada were $5,000, the licensee would have to cough up an additional $5,000 for Canada even though its total payments were nearly triple the total negotiated minimum. Some such situations can have their own unique problems. For example, if the licensor imposes territorial allocations of the Minimum Royalty Guarantee among the countries of the European Union, the licensee faces a significant problem. Under the laws of the European Union, contractual restrictions on the movement of products cannot apply among member countries. Unless the licensee is certain that it can control distribution by means other than contract, it will be at great risk of failing to meet minimums in some countries of Europe simply because it lacks such control. Therefore, it is strongly recommended that any allocations of Minimum Royalty Guarantee among member countries of the EU should be limited to only those countries representing the most significant markets. Whether other territorial divisions are appropriate must be considered in the context of the individual licensee’s business.
Allocations by Distribution Channel Unless the licensee is granted exclusive rights for all distribution channels, its first question to the licensor should be whether “reserved” channels—i.e., not granted to the licensee—will be made available to its competitors within the same categories of licensed products. There may be reasons for the licensor’s limitation of channels to be exploited. For example, some channels may be incompatible with the “image” of the licensor’s property. However, if those channels not granted to the licensee are not agreed by the licensor to remain unavailable to third party marketers, the licensee runs a real risk of cannibalization of its sales by products of other licensees in those other distribution channels. No reasonable licensor
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should refuse to commit one way or the other when asked this question, and the licensee must assume the worst case unless its licensor accepts a contractual obligation not to exploit the channels not granted to the licensee. This negative assumption should then be factored into the licensee’s decision whether to enter the agreement as it stands or to work toward some other offsetting concession, such as a reduction in its guaranty in the event that the “reserved” channels are granted to a third party.
Allocations Among Product Categories Previous articles in this series have addressed the importance of careful definition of the categories of licensed products. For example, any grant of exclusivity is only as significant as the clarity of its applicability. Similarly, allocations of portions of the Minimum Royalty Guarantee by product category must be considered together with the breadth of the definitions of such categories. If there is no room for expansion beyond the initial product offering during the term of the argument, achieving the minimums will be all the more difficult.
Other Allocations The extent to which the licensor may attempt to apply allocations to the Minimum Royalty Guarantee might be limited only by the creativity of the licensor on the one hand, and by the creative resistance of the licensee on the other hand. As suggested at the beginning of this article, licensees need to consider the potential risks to the “bottom line” of any such divisions and respond accordingly. Incredible as it may seem, the same fate can befall manufacturers who are fortunate enough to have commissioned the creation of artworks that prove to have enduring popularity in their product lines. That is, in situations where it matters most, manufacturers can lose ownership of the artwork embodied in evergreen products to the artist whom the manufacturer paid to create the artwork in the first place. •••• 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: ©2016 James M. Kipling. All rights reserved.
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