Spring 2013
LICENSINGBOOK THE
BUILDING BUSINESS THROUGH PARTNERSHIPS
Video Game Licensing Bridging the Gap Between Real Life and Fictional Worlds
TV Classics
Continue Comeback
App Licensing
Remains Largely Uncharted Territory
Departments 5 Editor’s Point 6 News 10 LIMA Update Martin Brochstein explains the process for selecting the nominees for the annual LIMA Licensing Excellence Awards. 11 LIMA UK Doctor Who makes an international comeback in broadcasting and licensing in more than 40 countries. 13 Property Profile: True Blood Merchandise extensions for HBO’s True Blood bring the Southern vampire drama to life for fans.
Volume 30, Number 2
31 Property Profile: Wizard of Oz The most recognizable film in history turns 75 this year, boasting a robust consumer products campaign.
Features 12
Classics Continue Comeback
This year is the year of the comeback for TV properties, with studios such as CBS and NBC focusing their consumer licensing programs on nostalgic hits.
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18 Property Profile: Star Trek CBS Consumer Products showcases its merchandise lineup for the Star Trek property in preparation for the release of Star Trek Into Darkness.
Blurring the Lines of Reality and Fantasy
46 Licensing 101 Jim Sachs discusses ideas and resources to help licensees choose the best license for their products. 47 Of Counsel Jim Kipling discusses how to handle the subject of grey market goods in licensing agreements.
Video game-licensed products bridge the gap between real life and fictional worlds. Companies including Blizzard Entertainment, Activision Publishing, 50 Directory and Microsoft seek licensees to produce relevant, meaningful consumer products that can expand video game content beyond consoles. THE LICENSING BOOK, Spring 2013
Winter 2013
42 App Licensing Remains Largely Uncharted Territory
With nearly a million apps developed, only a handful have successfully transitioned to licensed properties. What does it take to duplicate Angry Birds’ success in the app licensing arena?
4 • The Licensing Book
“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. © 2013 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 on 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, PO Box 47703 Plymouth, MN 55447.
Spring 2013
LICENSINGBOOK
®
www.licensingbook.com Cover Art by Activision Publishing
EDITOR’S POINT
THE
ADVENTURE PUBLISHING GROUP INC.® Vol. 30, No. 2, Spring 2013 The way consumers engage with their favorite properties and brands is changing. We’ve seen the evolution first hand. The advent of first the Internet and then social media has been both a blessing and a challenge to property owners who want to keep consumers engaged. Let’s say we’re referring to a TV property, such as Sesame Street or Star Trek. Fans will watch the show and go out and buy an Elmo plush or a “Beam Me Up, Scotty” T-shirt. But it doesn’t end there. Parents sit their toddler or preschooler on their lap and type www.sesamestreet.org into their web browser (whether on their desktop computer, tablet, or smartphone), or download one of the many available Sesame Street apps or e-books, and spend additional time engaging with favorite characters. This type of interaction allows intellectual property owners to ingrain their properties into the hearts and minds of consumers. The challenge, however, is to never disappoint. New content must be posted regularly. It’s expected and appreciated, and well worth the effort. Fans will share what they’re doing on Facebook, Twitter, Instagram, etc., driving even more consumers to action. And all of this interaction leads to consumer products sales. In this issue, we cover TV, app, and video game licensing—all categories that are strongly affected by social media and con-
Spring 2013
sumers’ expectations for anywhere, anytime interaction. The licensing of TV properties varies tremendously. From classics like the aforementioned Sesame Street to newer shows, such as AMC’s The Walking Dead, fans have high expectations for licensed product, regardless of genre. They expect quality and availability. When they look for the product, it should be there and it should meet their expectations. Video game licensing merges the worlds of fantasy and reality. Properties like Activision’s Skylanders and Microsoft’s Halo have avid fans eager to immerse themselves in their favorite games. They want to learn more about these fantasy worlds, which they can attain via the Internet and publishing, and they want to immerse themselves in the universe these characters live in by surrounding themselves with licensed products. Apps are the most challenging of the genres of licensing we examine in this issue. While experts vary on whether this is a viable area for licensing, many signs point to “yes.” It just seems to be a category in its infancy, and one that seems to model itself after video game licensing. Angry Birds will not be the lone success story; but it will take time, and—as with any successful licensed property—will require a vested interest by fans, who must be driven by engagement. ••••
President/Co-Publisher Laurie Schacht laurieschacht@aol.com
Co-Publisher Jonathan Samet jsamet@adventurepub.com
Editorial Director Jackie Breyer jbreyer@adventurepub.com
Senior Editor Loren Moreno lmoreno@adventurepub.com
Associate Editor Marissa DiBartolo mdibartolo@adventurepub.com
Assistant Editors Christine Duhaime cduhaime@adventurepub.com
Ali Mierzejewski amierzejewski@adventurepub.com
Editorial Assistant Kara Faulk kfaulk@adventurepub.com
Production Director Anthony K. Guardiola aguardiola@adventurepub.com
Controller/Office Manager Robert Forde rforde@adventurepub.com ADVENTURE PUBLISHING GROUP, INC.® 307 SEVENTH AVE., ROOM 1601 NEW YORK, NY 10001 TELEPHONE: (212) 575-4510; FAX: (212) 575-4521
Licensing News BRAND LICENSING
Dreamworks Animation Acquires Trolls International Property Rights DreamWorks Animation SKG Inc. has acquired the international property rights for the Troll franchise from the Dam Family and Dam Things of Denmark, with plans to introduce the brand to a new generation of fans worldwide. DreamWorks Animation has named American Girl veteran Shawn Dennis as head of brand development to cultivate this classic franchise. Dennis joined DreamWorks Animation to oversee its Trolls franchise in addition to other businesses within the company’s portfolio of branded intellectual properties. Originally created by Danish fisherman Thomas Dam in 1959, Troll dolls were one of the biggest toy crazes of the 1960s. Trolls experienced a resurgence in the 1990s and, in 2003, the Toy Industry Association added Trolls to its list of 100 of the Century’s Most Treasured Toys. DreamWorks Animation is now the exclusive worldwide licensor of merchandise rights for the classic Troll Dolls with the exception of Scandanavia, the birthplace of the Trolls, where Dam Things will remain the licensor.
TV LICENSING
Brandgenuity, FX Announce Licensing Program for Archer Brandgenuity LLC has announced the debut merchandising program for the action-packed, animated spy series Archer, currently in its fourth season on FX. Charter licensees for Archer include Abrams Books (calendars), Bioworld (apparel), Buckle-Down Inc. (belts, key chains, wallets), Cryptozoic (board games and trading cards), Hyp (hats/headwear), ICUP (glassware), Scorpio (posters), and Factory Entertainment (plush, bobbleheads, and action figures). Most watched by men ages 18 to 35, with an increasingly diverse audience of adults of all ages, Archer follows the self-absorbed employees of super-secret, super-spy agency International Secret Intelligence Service (ISIS) as they fight crime, snipe at each other, and engage in inappropriate workplace behavior. Debuting on January 17, the show’s fourth season premiere was its most-viewed episode, with more than 1.6 million viewers.
APP LICENSING
Plants vs. Zombies Lines Up Licensees Penguin Children’s Group has acquired a three-year deal for all physical book formats and e-books for digital brand Plants vs. Zombies (PvZ). The first books—Plants vs. Zombies Official Guide, The Official Sticker Book, and Plants vs. Zombies Joke Book—will be published in August. Additionally, Bulldog Licensing has announced that Accessories 4 Technology (A4T) has signed a deal to use Plants vs. Zombies on a new range of peripherals. The new deal will see A4T produce tablet and smartphone peripherals, game peripherals, speakers, and headphones that feature the distinctive PvZ characters. Bulldog Licensing is building a comprehensive licensing program across Europe that includes plush and figures from Jazwares, adult apparel and accessories from Bioworld, and posters from GB eye. A host of additional categories are expected to launch this year, including apparel, publishing, housewares, and collectibles as retailers push for more opportunities.
6 • The Licensing Book
BRAND LICENSING
ASPCA to Launch Toy Line with Commonwealth Toy & Novelty The American Society for the Prevention of Cruelty to Animals (ASPCA) has entered into an agreement with Commonwealth Toy & Novelty Co. Inc. to develop a line of plush toys and accessories. The line will replicate the experience of adopting a shelter pet, bringing the ASPCA’s mission to a new generation of animal advocates. The line is set to launch by the end of the year. Commonwealth Toy & Novelty Co. Inc. joins a robust roster of ASPCA licensees including Firestar Diamond Inc., American Greetings Co., Eyewear Inventions LLC, European Home Design Inc., and Williams-Sonoma Inc.’s PBTeen and West Elm brands.
Spring 2013
BRAND LICENSING
Moose Toys to Debut The Zelfs at Licensing Expo Moose Toys will debut its proprietary girl brand, The Zelfs, at Licensing Expo. The Zelfs line will roll out this fall with small, medium, and large dolls featuring 12 characters and play sets. Each character is identified by its “spiketacular” hair and special power represented by a Zelfmark. Each Zelf comes with hair accessories including extensions, clips, and brushes, which can be worn by the Zelf or kids themselves. Chaser Zelfs will also be included in the program. The launch of the program will be supported by a marketing campaign, including TV advertising, a dedicated website, social media, webisodes, live events, and public relations outreach. The Zelfs licensing program will be represented by The Licensing Shop Inc. at Licensing Expo.
BRAND LICENSING
Joester Loria Signs J2 Licensing for Kellogg’s Co-Branded NCAA Apparel The Joester Loria Group has brokered a deal for its client, Kellogg’s, with J2 Licensing to develop a cobranded apparel collection using Kellogg’s characters, such as Tony the Tiger and Toucan Sam, in combination with the marks of top national schools. J2 Licensing is a Michigan-based apparel company that specializes in collegiate merchandise with rights to many major NCAA colleges and universities. The collection will include T-shirts and fleece for young men, juniors, girls, and boys. Products will be distributed to college and university bookstores, specialty stores, and sporting good stores beginning in the fall.
Get the latest licensing industry news delivered straight to your inbox each week for free! Subscribe to The Licensing Book’s Total Licensing Report by sending an email to subscribe@adventurepub.com, and add that address to your address book to ensure delivery. For up-to-the-minute news, follow The Licensing Book on Twitter: twitter.com/LicensingBook, “like” The Licensing Book on Facebook:
BRAND LICENSING
Ekocycle Scores New Partnerships and Products to Celebrate NBA Green Initiatives Ekocycle, a brand initiative developed by global music artist and producer will.i.am and The CocaCola Co., is introducing new apparel and lifestyle products. The expansion of the Ekocycle product line coincides with NBA Green Week presented by Sprint. This effort is focused on reducing the league’s ecological impact and helping educate basketball fans worldwide about the importance of environmental protection. By educating people about the role of recycling in their lives, Ekocycle aims to inspire a global social movement around recycling and making more sustainable purchasing choices. Ekocycle repurposes items such as plastic bottles for use as recycled content in fashion-forward lifestyle products. To further reinforce The Coca-Cola Co.’s commitment to promoting recycling, the Coke brand Ekocycle Glyph name—spelled backwards, “EKOC”—is embedded into the pattern T-shirt, Ekocycle moniker. from adidas Products will include a full line of apparel and lifestyle items promoting environmental responsibility, including a limited-edition T-shirt from adidas featuring a custom Ekocycle Glyph pattern along with the adidas stripe logo and the official NBA logo. Levi’s has a limited-edition Levi’s 501 Waste<Less jean made with an average of eight recycled assorted plastic bottles per pair of jeans. Thiry-one percent of Beats by Dr. Dre’s Ekocycle Studio headphones are made using materials that would have otherwise been wasted, including three assorted recycled PET plastic bottles. New Era, RVCA, and MCM will also offer Ekocycle products.
facebook.com/LicensingBook, and visit our blog at www.licensingbook.com. Levi’s 501 Waste<Less jean
Spring 2013
The Licensing Book • 7
LIMA Update
Casting the Ballot: LIMA Votes for Excellence Awards
T
by Martin Brochstein, senior vice president of industry relations and information, Licensing Industry Merchandisers’ Association (LIMA)
he nominees for the annual LIMA Licensing Excellence Awards have been announced, and LIMA members are in the process of selecting the winners in each of the 15 categories. It can take quite a while to sift through a ballot of four to five nominees for each of those categories, trying to determine the best of the best. (You can access a list of the nominees on the LIMA website at www.licensing.org.) That ballot was culled from nearly 250 entries received from a global array of property owners, licensees, agents, and consultants. Louise Caron, LIMA’s vice president of member relations, who coordinates the awards program, spent hours responding to inquiries, explaining the classifications, listening to tales of woe from those requesting deadline extensions, organizing samples, printing, and collating—all with an outsized dose of patience and good humor. All of that hard work set the stage for a committee of 12 licensing executives to read, evaluate, discuss, and argue about the merits of the entries. “What makes this special? Did it succeed in the marketplace?” Each of the volunteer committee members filled out anonymous score sheets for each of the entries, and those that garnered the highest averages in each category were placed on the ballot. In the interest of fairness, if a committee member’s company had an entry in a particular category, that member wasn’t allowed to vote in the category. While there are always a few entries that can cause a committee member to ask, “Really? What were they thinking?” the day served as a showcase for superior
10 • The Licensing Book
work in a wide range of product categories and industry sectors, including entertainment products that went beyond the mundane, corporate brands that extended in unexpected directions, and well-executed lifestyle programs. In fact, the toughest decisions came when the committee had to break ties in several categories to meet the limit of five nominees per category. How will it all turn out, and who will be judged to be the best of the best? Come to the LIMA Awards Ceremony, June 18 at 5:30 p.m. at the Mandalay Bay Convention Center in Las Vegas. The winners will be announced, and we’ll honor our newest Licensing Hall of Fame inductee, former LIMA Chairman Bernard Leifer of SG Companies. I also urge you to take advantage of our extensive Licensing University program of educational seminars and presentations in Las Vegas in conjunction with Licensing Expo, beginning on June 17. To access an up-to-date schedule of sessions, visit www.licensingexpo.com. •••• Marty Brochstein joined Licensing Industry Merchandiser’s Association (LIMA) in 2008. Brochstein was a business journalist for more than 20 years, covering the consumer products and retail industries. He spent five years as senior editor of Television Digest and was the founding editor of Consumer Multimedia Report. He was also editor of Consumer Electronics Monthly and Electronics Merchandising, and spent time with Discount Store News, Chain Store Age, and Home Furnishings Daily.
Spring 2013
LIMA UK Takes a Trip Through Time with The Doctor
I
LIMA UK
by Kelvyn Gardner, managing director of Licensing Industry Merchandisers’ Association (LIMA) UK n the first in a series of articles about licensing in the UK, what better place to start than with a secret that the UK has kept quiet from the U.S. for the better part of 50 years? This secret is a TV show that has generated high licensing revenues for decades. It’s a show that is watched by whole families together, gathered around the TV at 6 p.m. on a Saturday evening. It’s a show that, for many years, depended on high-quality scripts set against miniscule production budgets. It’s the longest-running science fiction TV series in the world. This secret, dear reader, is Doctor Who. For a long time, only a few sci-fi aficionados outside of the UK had any knowledge or interest in Doctor Who. The program, featuring the eponymous Doctor who travels in time and space, was a huge UK hit when first broadcast in 1963, and it remained a firm favorite for roughly 20 years (eat your heart out, Lost) before a gradual decline in audiences resulted in cancelation in 1989. Doctor Who merchandise was among the first mass-market licensing successes in the UK in that period, with the toy market in particular seeking products based on The Doctor’s greatest enemy, The Daleks. Fragmented U.S. broadcasting—often consisting of omnibus compilations rather than the weekly serial format of the original—probably didn't help it gain much traction either. It has to be said, too, that by the early 1970s, production values of U.S. sci-fi shows such as Star Trek made a typical Doctor Who episode look somewhat tawdry. The big change came with the show’s revival in 2005, with international broadcast partners embracing
Spring 2013
the higher production values and the ad-friendly 45minute episode format. The series is currently broadcast in more than 40 countries. In the U.S., record ratings for the show on BBC America culminated in series six becoming 2011’s most downloaded TV program on iTunes. In the licensing world, international sales for the BBC have multiplied many times during the past few years. This year marks the 50th anniversary of Doctor Who, a fitting time for the show to cement its position as a favorite British export and true international licensing hit. With a range of licensed products from Topps trading cards to the Sonic Screwdriver, kids of all ages can find something to suit. As a more successful time traveler than even Marty McFly or Bill & Ted, The Doctor has, perhaps, even seen his own future in licensing. What a pity that commercial confidentiality precludes him from sharing this knowledge with us here, or the choice for potential licensees at Licensing Expo 2013 would be infinitely easier. Wouldn’t it be truly sensational if the whole world were clustered around the TV clutching favorite Doctor Who products in November when the 50th anniversary episode airs? Now, that would really seem like time travel. •••• Kelvyn Gardner has been in the international licensing business for almost 30 years. Since 2006, he has served as the managing director of the UK division of LIMA. Gardner contributes to the judging of the UK Licensing Awards and is a trustee of the industry's charitable company, The Light Fund.
The Licensing Book • 11
Classics Continue Comeback
TV Licensing
F
by Sierra McCleary-Harris
How to Speak Klingon, from Chronicle Books
rom nostalgic toy properties to classic TV revivals, this is the year of the comeback. Studios such as CBS and NBC are reaching into their catalogs, dusting off classic TV properties, and placing them at the center of their consumer licensing programs, while other networks focus on keeping current hit properties fresh. According to Nielsen, the average American spends slightly less than 152 hours per month engaging with content via numerous screens. As we continue to ingest hour upon hour of programming—and find ways to extend the hours per day we spend viewing—networks and licensees search for ways to capitalize. Maura Regan, senior vice president and general manager of global consumer products at Sesame Workshop, says, “This interest in classic properties is exciting to see. We’ve maintained our status along the way, but it is interesting to see some of these other properties coming back to life in a way.” Kim Niemi, senior vice president at NBCUniversal Television Consumer Products, agrees that classics are booming right now. “Things are cyclical,” she says. “Saved by the Bell is a great example. It was everywhere, and then it kind of died down for a moment. Then five or 10 years go by and you say: ‘I loved that show!’ It’s just timing. Most of us in the licensing business are very aware of that, and we use those ebbs and flows.” While program-
12 • The Licensing Book
ming can remain the same, the ways in which people watch series shifts more and more each year. An increasing number of Americans are viewing programming on mobile devices, via the Internet, and on “seventh generation consoles”—gaming devices with the ability to stream video content; think Wii U, Xbox 360, etc. According to CBS Consumer Products Executive Vice President and General Manager Liz Kalodner, this shift can be great for licensing. “It’s good for us because [the content] is even more accessible,” she says. “In addition to brick-and-mortar retail, the e-commerce business is exploding because you have immediate access to content and rewards.” Whether the property is new or being revitalized, whether it is a comedy or a reality series, executives across networks agree on the basic criteria for choosing licensees to manufacture dynamic products that keep consumers engaged. The formula is simple: creative products and designs; strong, reliable distribution; and brand awareness. Certain criteria can become more important for some brands than others. With a show like Sesame Street, which has been airing since 1969, innovation becomes even more significant. “It’s critically important for us to remain relevant. How do we make a difference in the lives of families?” asks Regan. “We create brand new content in response to what’s happening in the world around us. We are a hot classic. From a retailer’s standpoint, there’s a stability and reliability present with Sesame Street. Consumers always want it. There’s where working with best in class licensees helps.” From furniture based on The Good Wife and jewelry based on the classic Dynasty TV show, to the latest resort based on The Biggest Loser, this year will see a range of fully-integrated consumer licensing programs, no matter the genre. ••••
Spring 2013
True Blood Still Has Bite
Property Profile
W
Merchandise extensions for the six-season HBO series go beyond the typical categories to bring the supernatural world of the Southern vampire drama to life for its audience. by Loren Moreno
ith a mature “True Blood is such a gift—it brand like True has so many great things built Blood—the into it. You have Merlotte’s, Bon HBO cable Temps, the Fangtasia bar, all series is headthese different locations that we ing into its sixth season—it’s to be can merchandise, which fans expected that the consumer prodreally like,” says Costos. uct offerings will be robust and True Blood touches all the wide-ranging. It’s safe to say, howcategories of typical licensing ever, that True Blood is a step programs—licensed T-shirts, above robust. The Southern vammugs, key chains, all the logopire drama has come to life for fans driven merchandise that fans as three separate comic book ask for. But unlike some of the series, with more on the way. Luxlarger studios, HBO generally ury fragrances and beauty prodstays away from character ucts, along with a series of licensing and instead cookbooks and drink recipe books, focuses on products make the Louisiana setting tangithat make the details ble for diehard viewers. The brand in the show real for its True Blood comic, from IDW Publishing has even released a carbonated audience. Blood Orange beverage, Tru “We’ve never Blood, for fans looking to experience the synthetic done a costume for True Blood. It was blood sustenance popular among the vampires on the never in our DNA to think we wanted show. people running around dressed up Keeping the consumer products lineup as unique as like Sookie,” says Costos. “But what the show is one of HBO’s top priorities, says James Cos- we do create is the T-shirt that tos, vice president of global licensing for HBO. The Sookie wears, we have the Mershow’s colorful setting in the fictional town of Bon lotte’s apron, Merlotte’s glassware Temps, with its secret supernatural beings living among and mugware, different types of humans, is a never-ending well of inspiration. The things found in the bar and restaushow is centered on Sookie Stackhouse, a psychic wait- rant. We always have to be a little ress at the Merlotte’s Bar & Grill. Costos says the HBO unique.” For the most part, the ideas for consumer products staff is continually mining the show True Blood ancillary products are before episodes are released for potential merchandise developed in-house, Costos says. extensions.
Spring 2013
The True Blood drink, Tru Blood, originally licensed by Omni Consumer Products, replicates the vampire drink from the show in the form of a Blood Orange soda. HBO Licensing & Retail is currently in transition with its licensee, but is actively seeking to continue the product.
The Licensing Book • 13
Anna Paquin plays Sookie Stackhouse, the telepathic waitress at Merlotte’s Bar & Grill, on the HBO series True Blood. Sookie finds herself in the middle of a supernatural drama when she saves vampire Bill Compton’s life from humans seeking to harvest vampire blood as a narcotic. Bill then declares that vampires are forbidden to bite Sookie, preventing her from ever joining the undead.
But occasionally HBO is pitched a product that turns out to be the right fit and, eventually, a huge success. That’s the case with the True Blood comic books, from IDW Publishing. In collaboration with the show’s creator, Alan Ball, IDW has produced three series of the comics focusing on character back stories and other plot lines left unexplored on TV. After IDW pitched the comic book idea, Costos and his crew went out to the studios to speak with Ball and Greg Feinberg, the show’s executive producers. “Alan didn’t bite,” says Costos. “We had to take a step back.” But eventually the conversation evolved. “I said to Alan, ‘You guys in the room, the writers, you must have ideas for plots and different stories that obviously never get told. Or maybe there’s a direction or vein of storytelling you’d like to do, but for some reason it doesn’t fit,’” says Costos. That’s when Ball began to see the comics as a way to enrich the story occurring on-air. They’ve also become a tool for cross-promoting the show’s other products and keeping fans engaged between seasons. The comics have proven so successful that all three series have been compiled into hardcover collections— True Blood: All Together Now, True Blood: Tainted Love, and True Blood: the French Quarter. HBO is working with IDW on another series that will run through the end of the sixth season. With True Blood going on its sixth—with a possible seventh—season, the challenge can sometimes be giving consumers something they haven’t seen before. “Obviously, with a mature brand like True Blood,
14 • The Licensing Book
everyone who wants to buy something has pretty much already purchased it. With any brand, as it begins to mature, the consumer products will begin to wane, but we also like to think it will continue to sell long after the show is off the air,” says Costos. In the case of HBO, Costos points to brands such as Sex and the City and Entourage. Sex and the City continues to be popular in Europe and Asia, where a line of beauty products that are unavailable in the U.S. have been a hit. In the U.S., with the Sex and the City movies and a new deal for an Entourage film, Costos says brands can be revived with vintage and nostalgic products. Does that mean there could be a movie in True Blood’s future? For Costos’ purposes, he hopes so. The True Blood brand is undoubtedly popular and its consumer products business is healthy, so where will it go next? “It can go anywhere,” Costos says. Without giving it all away, he says to be on the look out for True Blood to enter the world of gaming. HBO first tried its hand at gaming in 2006 with The Sopranos, but Costos says it never took off. “I think it left a bad taste in HBO’s mouth, that gaming wasn’t the place to go.” But technology has changed, and with the success of land-based slot machines for Sex and the City and the recent launch of the Game of Thrones Facebook game—Game of Thrones Ascent—Costos says the doors have been thrown open for more gaming. Other areas for consumer products are also wide open, Costos says. “We’re in no rush when we do these things; we take time and we appreciate that we’re putting forward good quality products.” ••••
Spring 2013
Property Profile
IDW Creates True Blood Comics
IDW Publishing and HBO have created a hardcover collection of its first True Blood comic story arc, All Together Now. Developed with show creator Alan Ball, All Together Now was co-written by David Tischman and Mariah Huehner. The series is illustrated by artist David Messina. The True Blood saga continues with True Blood: Tainted Love. Actor Michael McMillian co-authors the six-issue arc with writer Marc Andreyko. In this series, Jessica is exposed to contaminated bottles of Tru Blood, causing the vampire to go berserk. Sookie, Bill, and the others must figure out who (or what) is behind the bad blood. In True Blood: the French Quarter, readers will learn the beloved cast of characters’ roles in, and reaction to, the “Great Revelation,” the day when vampires revealed themselves to the world.
WaterTower Releases True Blood Tunes
WaterTower Music has released True Blood—Music from the HBO Original Series—Volume 3, which features new music by an eclectic array of artists such as Neko Case and Nick Cave, Jakob Dylan and Gary Louris, The Heavy, and Black Rebel Motorcycle Club, as well as a reworking of Donovan’s classic “Season of the Witch,” by Karen Elson. A follow-up to the first two Grammy-nominated soundtracks, it includes new songs from the third and fourth seasons and previews music from the fifth season.
16 • The Licensing Book
HSN Offers True Blood Fragrance
Forsaken is a collection of beauty products inspired by True Blood. HBO aligned with Forsaken LLC, a specialty licensing partnership created by Multi Media Exposure and Virtue Development, to create a one-of-a-kind luxury collection which includes the Forsaken signature fragrance created by Givaudan; beauty products from Deborah Lippmann; and home fragrance products from D.L. & Co. The line launched on HSN, HSN.com, and via HSN mobile last year in conjunction with the show’s fifth season. The collection is available at the HBO Shop and at specialty retailers.
Chronicle Books Has Recipes
True Blood: Eats, Drinks, and Bites from Bon Temps, from Chronicle Books, includes 85 recipes covering everything from appetizers through desserts, each attributed to and introduced by a character from the series. Enjoy dishes such as Russell’s Beautifully Broken Bisque, Sookie’s What a Fried Chicken, Ruby Jean’s Hash courtesy of Lafayette, Sam’s All Mixed Up Red Beans and Rice, a Totally Surprised Birthday Cake from Tara, and more. A collection of genuine Bayou country fare, True Blood: Eats, Drinks, and Bites from Bon Temps is written by Gianna Sobol, Alan Ball, and Karen Sommer Shalett. Recipes are by Marcelle Bienvenu and food photographs are by Alex Farnum.
Spring 2013
V-MODA Covers True Blood Audio
V-MODA, music lifestyle brand and manufacturer of headphones, has created the V-80 on-ear headphones, part of the V-MODA for True Blood line, developed in partnership with HBO. The V-80 is a lightweight, high-fashion headphone that fuses lifelike 3-D sound, timeless materials, durability, and shapeshifting style. The V-80 offers customization options for True Blood fans. They can choose from a range of designs that showcase their fanatical passion for the show as a badge of distinction. The two iconic V-MODA metal ear shields, on either side of the ear cushions, can easily be switched out to exhibit a variety of options featuring popular images and icons from the show, from the night club, Fangtasia, to the Japanese symbols featured on the Tru Blood beverage. The V-80 is built to pass the MIL-STD-810G military standard guidelines.
HBO Offers Sookie’s Uniform
In the spirit of creating authentic True Blood gear, HBO has produced the True Blood Inspired by Sookie Set, featuring the Merlotte’s T-shirt (Fifth Sun) and apron (Classic Imprints) worn by Sookie Stackhouse and the other waitresses at the Merlotte’s Bar & Grill. Both the T-shirt and apron are imprinted with the Merlotte’s logo.
True Blood Drinks
Featuring 45 themed recipes inspired by the HBO original series, True Blood Drinks & Bites, from Chronicle Books, brings the good times of Bon Temps home. From often-ordered refreshments at Merlotte’s and Fangtasia, to the Fortenberrys’ family recipes for the best finger foods around, there are mixed drinks for teetotalers and boozehounds alike, plus bites for all appetites. True Blood Drinks & Bites features quotes and commentary from the characters, accompanied by original unpublished photography from seasons one through five. How about Scorn Fritters and Cheese Stakes washed down with an ice-cold Spirit Lifter? Or a Maenad a Trois paired with Skinwalkers and Vamp Repellent?
Spring 2013
HBO Stocks the Kitchen
Fans of True Blood can remind the potential vampires in their life that they’re not on the menu when they whip up their next meal. This textured glass cutting board, from Delivery Agent, features the “Don’t Bite the Cook” slogan along with the True Blood logo. HBO also offers other kitchen accessories, such as “Don’t Bite the Cook” aprons, oven mitts, and pot holders.
The Licensing Book • 17
Property Profile
CBS CONSUMER PRODUCTS
LIVES LONG & PROSPERS WITH “
Excitement for all things Star Trek is reaching incredible heights this year. Reflecting this fan fervor, we’re thrilled to work with this new slate of licensees to bring unique twists to many everyday products.” — Liz Kalodner executive vice president and general manager, CBS Consumer Products
TREKKIE TRIVIA
➢ There are more than 700 hours of entertainment across six TV series and 12 movies. ➢ There are more than 70 million books in print. ➢ Chosen as TV Guide’s No. 1 Cult Series of all time. ➢ The first space shuttle was named Enterprise after Star Trek fans deluged NASA with an intensive write-in campaign. ➢ The original Star Trek featured the first interracial kiss on broadcast TV when William Shatner’s Captain Kirk kissed Nichelle Nichols’ Lieutenant Uhura. ➢ Veteran actor Vaughan Armstrong has appeared in every Star Trek TV series except the original series. He has played 12 different characters across four shows. ➢ Actor James Doohan was involved in the WWII D-Day invasion of Normandy. In the course of the invasion, he was shot multiple times and required the amputation of his right middle finger. creator Gene Roddenberry’s TV writing and production career was preceded ➢ Star Trek by stints as a U.S. Army Air Corps pilot and a Los Angeles Police Department officer.
18 • The Licensing Book
Spring 2013
NAMCO
More than four decades after they first squared off on an isolated desert planet, William Shatner comes face-to-face once again with the menacing Gorn species of Star Trek fame in a new video game in partnership with Namco. The two former foes go head to head in the April 23 release of the Star Trek video game.
CHRONICLE
Avoid dishonor and intergalactic incident with How to Speak Klingon, an indispensable audio phrasebook for mastering the harsh, guttural language of Klingon. Illustrated scenarios set the scene and offer additional useful phrases, making How to Speak Klingon an essential guide for any Star Trek fan.
IDW
IDW Publishing has joined with Paramount Pictures, J.J. Abramsâ&#x20AC;&#x2122; Bad Robot Productions, Kurtzman/Orci Productions, and CBS Consumer Products to publish a four-issue, limited comic book series tied to the new Star Trek Into Darkness movie.
MATTEL
Timed to the theatrical release of Star Trek Into Darkness, Mattel has created a line of die-cast models inspired by the iconic franchise under license from CBS Consumer Products. The detailed miniatures will include the U.S.S. Enterprise. The lines will hit retail in May.
Spring 2013
HASBRO
In support of Star Trek Into Darkness, Hasbro will develop a line of premium Kre-O Star Trek building sets featuring fantastical spaceships and legendary characters from the franchise. The Kre-O Star Trek sets will include high-quality Kre-O bricks and new Kreon figures in the likeness of popular characters.
The Licensing Book â&#x20AC;˘ 19
TV Licensing
BBC Continues to Highlight Doctor Who
BBC America continues to celebrate the 50th anniversary of Doctor Who with a slate of licensed products. The Doctor Who: Fourth Doctor Bathrobe is made of terry cloth and was inspired by the wardrobe of Fourth Doctor, Tom Baker. His irreplaceable scarf of many colors, knitted by Madame Nostrodamus, transforms itself into wide, full-length lapels. And, lest anyone question your identity, the sewn-in label proclaims, “Property of Doctor Who.” Fans can celebrate the space-and-time-traveling adventurer with collectible figures from Titan Merchandise. The 16-character set includes Matt Smith’s Eleventh Doctor, his time-and-spacecraft, the TARDIS, and some of his notorious foes, including the supremely evil Daleks and the inhuman Cybermen. Each figure is 3 inches tall, and several figures come with character-specific accessories. They will be blind boxed to add to the mystery of hunting down and collecting them all. The Enemies jigsaw puzzle is a limited-edition puzzle available in Doctors Collage and Doctors vs. Enemies varieties. Ashley Eckstein, founder of Her Universe, a fashion line exclusively focused on female Sci-Fi/Fantasy fans, is releasing a line of Dalek dresses at Hot Topic. Girls will be able to buy a Dalek dress in multiple colors so they can dress up together as a geek-chic group.
Doctor Who: Fourth Doctor Bathrobe
20 • The Licensing Book
The Doctor Who 50th Anniversary Monopoly Collector’s Edition, from USAopoly, allows players to choose from one of six custom tokens based on the Doctor’s costumes across his regenerations: The Seventh Doctor’s umbrella, The Second Doctor’s recorder, The Fifth Doctor’s celery, The Eleventh Doctor’s bow tie and screwdriver, and The Fourth Doctor’s scarf.
Atlantyca Renews Sticasa Partnership
Atlantyca Entertainment, Italy’s premiere trans-media entertainment company, has secured a licensing agreement with California-based specialty plush and merchandise manufacturer MerryMakers Inc. to create a line of plush dolls and toys featuring the Geronimo Stilton book series brand for North America. The deal was completed by Atlantyca’s North American licensing agent (and Geronimo Stilton animated series production partner) Moonscoop. MerryMakers will create a plush line featuring dolls, finger puppets, tins, pencil cases, pencil toppers, wallets, key fobs, and plush backpack clips for the Geronimo Stilton classic brand, available starting in August, for sale in bookstores and specialty gift and toy shops. Launched in 2000 by Italian publisher Edizioni Piemme through a series of children’s books, Geronimo Stilton is a famous Mouse-auLittle Prince canvas art, thor turned newspafrom Sticasa per editor who writes amusing adventures steeped in suspense and healthy values for children worldwide. Atlantyca Entertainment has renewed its licensing agreement with Milan-based Sticasa S.r.l. for the classic Little Prince brand for Italy. Producing 100 percent Italian-made products, Sticasa’s product line includes skins to personalize a variety of phones, tablets, and notebooks; wall stickers to personalize walls; and stickers for cars and motorbikes. Sticasa will also introduce a new line of canvas art for the iconic brand.
Spring 2013
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• Holiday Gift Guide in the November issue
of Woman’s Day magazine, read by 20 Million* Consumers (*MRI Fall 2012).
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a comprehensive companion website, thetoyinsider.com, features links to participating advertisers’ and retailers’ websites.
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TV Licensing
DHX Media Draws Attention to Kids’ Properties
DHX Media has signed a swathe of merchandising deals across its slate of kids’ properties and has announced the beginning of a licensing program for its newest addition, Ella the Elephant. Ella the Elephant is a new animated preschool series, based on the Ella the Elegant Elephant books by Carmela and Steve D’Amico. DHX Media has international television distribution and licensing rights to Ella the Elephant in Canada, the U.S., the Middle East, and India, while the rest of the world is handled by FremantleMedia Kids & Family Entertainment. Caillou will see a new wave of branded products released this year. In Canada, character costumes are being produced by Daytime Enterprises Ltd., while longtime partner Editions Gladius International Inc. is releasing Caillou-themed games. In the U.S., DHX Media has renewed an agreement with Buy Seasons to produce birthday party supplies, and has also signed on Genera Mobile Solutions SA to create a 3-D talking Caillou app, including in-app mini-games. A Caillou jigsaw puzzle app is being produced via Budge Studios. Caillou takes a strong stand with the new PlayWorld Caillou’s
House app, which will focus on play and exploration in and around Caillou’s house. Imports Dragon will bring new products for Caillou, including fire trucks, learning dolls, and the bath star station buddies. Busytown Mysteries’ program with the American Automobile Association (AAA) to promote car seat safety will continue for a fourth year, while Wendy’s is producing a program for kids under age 3, featuring Richard Scarry’s Busytown Mysteries board books. DHX Media’s arm, licensing CPLG, and American Greetings Properties have secured multiple deals for represented properties. In Canada, the berry sweet Strawberry Shortcake brand is now available in an outwear range produced by Vetements Adorable Junior Garments; Editions Gladius has signed on for camp chairs, balls, and lunch boxes featuring the character and her friends; and Johnson & Johnson has renewed its agreement for a second term of Strawberry Shortcake toiletries. In addition, CPLG has inked a deal with Calego, licensing the Care Bears brand for backpacks, and with Jelli Fish Kids for a range of kids’ sleepwear.
DreamWorks Dragons Toys Are Packed with Fiery Features
Kids everywhere can play with the dragons from the How to Train Your Dragon film and the Cartoon Network series DreamWorks Dragons: Riders of Berk. Toothless, Hiccup, and the dragon trainers of Berk are back in a full line of action-packed toys from Spin Master. DreamWorks Dragons Giant Fire Breathing Toothless breathes realistic-looking fire, features a 23-inch wingspan, and launches two glow-inthe-dark fireballs. The DreamWorks Dragons Action Dragons Assortment brings the action-packed dragons of Berk to life with flapping wings. Boys can take control of Toothless’ catapult tail, Stormfly’s glowing snap attack, and the Zippleback’s wild double-headed flex necks, and combine them with 3inch Viking figures to take to the skies. The DreamWorks Dragons Mini Dragons Assortment brings highly detailed figures down to pocketsize.
22 • The Licensing Book
DreamWorks Dragons Action Dragons Assortment, Stormfly, from Spin Master
Spring 2013
Guru Announces New Broadcast, Publication Deals
Guru Studio and Home Plate Entertainment have announced that TVO, Ontario’s public educational media organization, has joined the development team for Wish Come True, a new preschool property from art collective and creative studio FriendsWithYou. Wish Come True is a CG-animated series made for kids ages 3 to 6 that combines interactive elements with a dynamic graphic style. Its origin as an art concept created by FriendsWithYou has inspired an exciting, visually vibrant property. The series is based on a toy of the same name, currently available on Amazon. Justin Time, an adventure series built upon fun and friendship for kids ages 3 to 6, has just signed its second book deal with Immedium for The Big Pet Story, which will be available in May from Amazon and Chapters/Indigo.
The Big Pet Story, from Chapters/Indigo
Spring 2013
FremantleMedia Seeks New Licensees
Two of FremantleMedia Enterprises’ most popular kids and family TV shows will be coming to the U.S. Aimed at preschool children, Tree Fu Tom combines innovative elements of heroic action, fantasy, and magic, coupled with interactive physical activity. The show is accompanied by a comprehensive consumer products program supported by retailers across the country. Tree Fu Tom will air on the Sprout network in the U.S. this spring, and Fremantle is currently exploring opportunities with numerous potential partners. Wizards vs Aliens will make its debut in the U.S. on The Hub this summer. Fremantle is currently exploring various licensing opportunities for this show, which was created by Russell T. Davies and Phil Ford, the force behind Doctor Who, Torchwood, and The Sarah Jane Adventures.
HBO Beefs Up Game of Thrones
Game of Thrones is the fastest growing licensed merchandise property for HBO globally, outpacing Sex and the City and True Blood. Its international retail footprint is the fastest growing of all of the HBO show properties, with the online HBO Shop and fine retailers servicing fans in the UK, the U.S., Canada, Ireland, France, Germany, Spain, Italy, Belgium, the Netherlands, and other countries across Europe. Accounting for 75 percent of sales last year, Game of Thrones is the best-selling franchise in terms of merchandise sales on the HBO Shop Europe and the fastest growing category of merchandise sales. In light of the upcoming third season of Game of Thrones, new products have been added to the HBO Shop, including new Pop! figurines, iPhone cases, mugs, and glasses. Funko and HBO have developed a series of figurines. The Game of Thrones collection debuts with six figures: Tyrion Lannister, Ned Stark, Daenerys Targaryen, Khal Drogo, The Hound, and a White Walker. The figurines are super-stylized and stand 3.75 inches tall. Game of Thrones Pop! Daenerys Targaryen iPhone Case
The Licensing Book • 23
TV Licensing
HGTV Offers Variety of Home Items
Bassett has brought the power of the HGTV network to retail with the HGTV Home Design Studio, allowing consumers to participate in the home makeover experience they love to watch on-air via custom upholstery for sofas, ottomans, sectionals, beds, pillows, and headboards as well as “Style Boost” accent tables and chests. The HGTV Home Design Studio is available exclusively at 90 Bassett retail locations. The HGTV Home Plant Collection, managed by Agricola, features selected annuals and mixed combinations, including four themes with 34 varieties. Agricola’s collection of live plants allows consumers to express their personal style in their gardens with HGTV Home’s proprietary varieties. Single varieties are available in branded quarts and mixed combinations are available in branded gallons, hanging baskets, and decorative patio pots. In April, new product offerings of annuals, shrubs, and blooming perennials will also be available. The HGTV Home Plant Collection is in more than 850 doors in the U.S. and Canada, including independent garden centers, hardware stores, and grocery stores. HGTV Home by Sherwin-Williams is sold exclusively in almost 3,000 Sherwin-Williams retail stores, offering a full collection of interior paint, exterior paint, whole home color palettes, paint accessories, and wallpaper. The interior and exterior paint lines feature eight whole-home color collections and offer flat, satin, and semi-gloss finishes. Paint accessories include roller trays and covers, paint cups, angle trim brushes, and heavy-duty roller frames. The wallpaper and peel-and-stick wall decals are designed with patterns that coordinate with the paint collections. Home Plant Collection, from Agricola
Sesame Workshop, Hasbro Renew Partnership
Sesame Workshop is continuing its partnership with Hasbro. Products from the Playskool brand will feature a full range of Sesame Street characters. Fan can look forward to Big Hugs Elmo, which can actually hug kids back, and the Sesame Street Roads and Rails collection, which includes three vehicle-themed play sets featuring Elmo, Ernie, or Cookie Monster. Sesame Workshop has partnered with Qualcomm and created an app called Big Bird’s Words, which will feature the use of Qualcomm Vuforia augmented reality platform’s text recognition capability. Within the app, children are guided, via the use of a virtual wordoscope, to search for and find new words in their environment, making vocabulary-building a fun and interactive experience. A new indoor-themed ride, Sesame Street Spaghetti Space Chase debuted at Universal Studios Singapore. Guests onboard this high-flying adventure will find themselves fully immersed in fun surroundings and special effects alongside their favorite friends from Sesame Street. Ape Entertainment, in partnership with Sesame Workshop, will release the first comic book featuring the cast of the children’s show Sesame Street to coincide with national Free Comic Book Day on May 4. The new and original comic book series emphasizes educational and entertaining content for younger readers. A Free Comic Book Day edition of the standard comic will be made available for free from participating comic retailers. The premier issue of Sesame Street comics became available in stores nationwide on May 1. Produced in full color, the standard Sesame Street comic edition features five interlocking covers, which, when placed side by side, depict an on-the-Street scene, featuring Elmo, Big Bird, Cookie Monster, Grover, and the Big Hugs Elmo, whole Sesame Street gang. Each of the five editions is 28 pages and includes five Sesame Street stories.
from Hasbro/Playskool
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Spring 2013
TV Licensing
The Walking Dead Zombie Merchandise Takes Over Retail
AMC’s The Walking Dead continues to take a bite out of retail dollars with the addition of several new licensees, including Activision for video games; ABG Accessories for headwear; Bioworld Merchandising for bags, cold weather accessories, wallets, cut-and-sew apparel, and jewelry; Briefly Stated for men’s loungewear; Her Universe for juniors’ fashion apparel; Just Funky for clocks, signs, beverage holders, lanyards, magnets, and buttons; Master Cutlery for weapon replicas; MDI Entertainment for lottery ticket games; Robe
Factory for bath robes and towels; Rabbit Tanaka for lamps, lighting, dartboards, mugs, and wall décor; and Sellers Publishing for a 2014 wall calendar. New Walking Dead products will also be released from existing licensees Buckle Down (belts), Changes (apparel), Cryptozoic Entertainment (trading cards and board games), Funko (vinyl figures and bobble heads), Gentle Giant (busts and statues), Jakks Pacific (Plug & Play TV Games), McFarlane Toys (action figures), Rubie’s Costume Co. (animatronic zombies), and Scorpio Posters. Licensing for The Walking Dead is handled by Striker Entertainment.
Michonne Vinyl Figure, from Funko
AGP Adds Licensees for Care Bears, Strawberry Shortcake
American Greetings Properties (AGP) has signed Campestre for gory launches. The latest merchandising push focuses on fashiona new line of backpacks for Care Bears in Brazil, known there as forward apparel with a line of classic and retro Care Bears T-shirts Ursinhos Carinhosos. It joins an alfrom Wakaba and apparel accessories, ready established roster of Care Bears including socks, foot covers, leggings, licensees in Brazil covering key cateand leg warmers from Minoya. gories including stationery, apparel, AGP and Medialink are introducpublishing, health and beauty, and ing two new licensees in Thailand for footwear. Strawberry Shortcake. MT Favourgift In Panama, AGP and Exim Licenshas signed on to make stationery and ing have renewed a partnership with back-to-school products. Pong Intouch Productos Panameños for stationery will make a baby apparel line. Along items featuring Strawberry Shortcake, with an already established publishing Care Bears, and Holly Hobbie & deal with Bongkoch Publishing, the adFriends. dition of apparel and BTS deals will inCare Bears are bringing their cheer crease Strawberry Shortcake’s presence Strawberry Shortcake bedding, from Zorlu to Taiwan as AGP and MediaLink in the territory. launch a new line of women’s footwear with Hon Ruim Anns AGP and Merchantwise have brought on Life Like, also the Boutique. The footwear line is currently being carried in Anns Care Bears licensee in Australia and New Zealand, to build on Boutique stores and in specialty and independent stores in Tai- commercial success and increase awareness and exposure through the production of live events across the continent. wan. In Spain, SSC and Lorenay are collaborating on health and In Japan, AGP and MindWorks Entertainment are expanding the reach of the brand countrywide and beyond with new cate- beauty aids and cosmetics.
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Spring 2013
The Voice Reaching Both Trade and Consumers
CONTACT: JONATHAN SAMET OR LAURIE SCHACHT ADVENTURE PUBLISHING GROUP 307 7TH AVENUE, SUITE 1601 NEW YORK, NY 10001 TEL: 212-575-4510 FAX: 212-575-4521 WWW.ADVENTUREPUB.COM
TV Licensing
Nerd Corps Ramps Up Slugterra Action
As Nerd Corps Entertainment’s boys’ action-comedy series Slugterra continues to slug it out on more TV screens around the world, kids can finally show they’ve got what it takes to be a true Slugslinger with the Slugterra global toy and merchandise rollout. Nerd Corps’ distribution arm has signed on new free‐to‐air broadcasters, while the company’s licensing arm has locked down two new agents and several new merchandise deals to keep the momentum going. Slugterra launched on Disney XD in the U.S. last fall and new episodes began airing in February. In the U.S. market, Slugterra is hitting retail shelves with a line of collectible slugs and blasters with unique transforming darts from Jakks Pacific. To coincide with the toy launch, Shout Factory is releasing Slugterra: Return of the Shane Gang, the first in a series of DVDs coming out this year. Nerd Corps’ licensing division continues to bring in domestic deals. Following the toys and home video rollout in the U.S. will be T‐shirts from Hybrid Apparel and sleepwear from Mad Dog Concepts. Additionally, Nerd Corps’ interactive team entered the Apple App Store for the first time in December with a new game for iPhone, iPad, and iPod touch called Slug it Out!. Nerd Corps will launch new modes and in‐app purchases to coincide with the toy and DVD launch this spring. This follows a robust online offering from the team that saw the flash game Battle for Slugterra hit the top spot on disneyxd.com. Globally, the series continues to roll out on Disney XD on pay TV. Free TV launches will begin in the third and fourth quarter and continue throughout next year. New international broadcasting deals include Noga (Israel), MBC (Middle East), and Switchover Media/K2 (Italy). As broadcast ramps up globally, Nerd Corps is bringing aboard more agents to help support the international rollout with product launches throughout this year and next. The newest additions to the Slugterra team are Character Licensing and Marketing (South Africa) and Brand Is Real (Israel). Additionally, Beyond Home Entertainment has acquired the home video rights to the series in Australia and New Zealand, while in Latin America, Slugterra’s licensing agent CPL is currently closing deals for back‐to‐school items, stickers, albums, and trading cards. Licensing agents representing Slugterra include CPLG (UK), Haven Licensing (Australia), Elastic Rights (Spain, Portugal, France, Greece, and Turkey), CPL (Latin America), and Megalicense (Russia).
The Sky’s the Limit with Artzooka! Craft Kits
CCI Entertainment has partnered with Wookie Entertainment for a line of Artzooka! craft kits, activity books, and more. The Artzooka! product line will focus on imagination-stimulating offerings that empower kids to create a range of artful and practical playthings and decorative accessories. Based on the energetic and ever-artistic Artzooka! TV series for school-age kids, the new Artzooka! collection provides more inventive opportunities for kids to express themselves in clever and resourceful ways. Key to the Artzooka! line are traditional arts and crafts play patterns for kids ages 5 and up. Each kit includes a “craft challenge” for kids to complete with materials commonly found at home, along with step-by-step instructions written in clear, age-appropriate language with corresponding images to ensure project success. New kits include Surprise Match Boxes, Cupcake Creations, Recycle Sticker Creations, Beach Jewelry, Pop Stick Photo Frames, and Button Mosaics, which is available in Lion and Fish, Alligator and Elephant, and Iguana and Gorilla sets.
Cupcake Creations, from Wooky Entertainment
28 • The Licensing Book
Spring 2013
Mr. Bloom Program Starts to Flower
Sprout Expands Partnerships
Sprout has retained integrated family entertainment company Big Tent Entertainment as its U.S. licensing agency of record. Big Tent will represent the network to develop a fully integrated Sprout presence at retail and create an umbrella consumer products program for kids ages 2 to 5 under the Sprout brand name. In addition, Big Tent will help introduce product based on the network’s growing roster of original programs, including The Chica Show and The Goodnight Show. Sprout recently launched an online retail experience at www.shopsprout.com, powered by CafePress, to allow preschoolers and their parents to extend the Sprout experience at home. The online shop showcases designs that feature a range of products including Sprout-branded apparel and plush toys, puzzles, DVDs, and iPad and iPhone accessories featuring the network’s favorite characters. This year, Sprout introduced more than 100 new online games and mobile apps, as well as a “video jukebox” microsite where preschoolers and their families can watch fulllength music videos.
Spring 2013
British agency Bulldog Licensing recently inked a deal with publishing giant Random House that will see a range of titles hitting the market based on UK preschool hit Mr. Bloom’s Nursery. The titles will be carried in WH Smiths. Mr. Bloom’s Nursery is one of the most popular kids’ shows in the UK and is broadcast across multiple BBC channels. Set in a colorful and fertile allotment run by the green-fingered Mr. Bloom, the show combines live action with puppetry to introduce children to the experience of nurturing plants and vegetables. Bulldog has also signed a deal with Portico Designs Ltd. for cards and calendars based on the series. Bulldog is currently exploring additional merchandising options with a number of other interested parties.
CBS Teaches Fans to Speak Klingon
CBS Consumer Products is putting the focus back on its Star Trek property. Fans can master the harsh, guttural language of Klingon with How to Speak Klingon, a new audio phrasebook from Chronicle Books. This primer on ill-tempered and proud Klingon culture teaches readers crucial compliments, toasts, and insults. Illustrated scenarios set the scene and offer additional useful phrases, making How to Speak Klingon an essential guide for any Star Trek fan. Hasbro is venturing to the final frontier with an upcoming Star Trek line that will encompass a wide array of intergalactic space vehicles from Star Trek into Darkness, as well as collectible KreOn figures based on Star Trek characters. Set to arrive on shelves this spring, the new Kre-O line will also herald the introduction of Lighttech, a light-up building feature within every space vehicle. Also new is the Star Trek video game, available for Xbox 360, PlayStation, and PC.
The Licensing Book • 29
TV Licensing
ITV Studios Revives Classic Properties
ITV Studios Global Entertainment (ITVS GE) continues to grow its business both in the UK and internationally. The classic Thunderbirds super marionette adventure TV show will celebrate its 50th anniversary in 2015 with the premiere of a reinvention of the series. ITV Studios, Pukeko Pictures, and Weta Workshop will co-produce Thunderbirds are Go!, the working title for the new children’s series set to debut on ITV and CITV in the UK. A two-tier consumer products strategy is in place to meet demand from both original fans who love books, collectibles, and retro apparel based on the original show designs, and a whole new generation of kids ready to discover Thunderbirds through the upcoming TV show. Consumer products based on the animated Matt Hatter Chronicles from Platinum Films are also in the works. ITVS GE also represents Babar the Elephant, which celebrates its 80th anniversary this year. Fans of the original Vintage Babar will be treated to this dapper elephant launching his own range of menswear in the famous Colette boutique in Paris. The range comes from the Copenhagen-based label Soulland and head designer Silas Adler, a lifelong fan of Babar. Cut the Rope has moved from best-selling app to entertainment franchise. The North American merchandise program for Cut The Rope includes more than 30 licensees, while nearly 50 licensees have been signed for the European licensing program.
Nickelodeon Expands Portfolio
Nickelodeon Consumer Products (NCP) offers a portfolio based on entertainment brands for preschoolers, kids, and adults, including SpongeBob SquarePants, Dora the Explorer, Teenage Mutant Ninja Turtles, Team Umizoomi, and Bubble Guppies. Nickelodeon will be extending the brands’ presence across all retail channels with movie- branded products timed to Paramount Pictures’ 2014 major tent-pole theatrical releases of Teenage Mutant Ninja Turtles, which will kick off the summer blockbuster season, and SpongeBob SquarePants, set for holiday release. Nickelodeon is also set to launch new merchandising and promotional programs for Peter Rabbit and Dora and Friends. Peter Rabbit recently launched as a re-imagined CG-animated preschool series based on the popular Beatrix Potter children’s books. The upcoming series Dora and Friends is an original, animated Dora the Explorer spin-off starring the Latina heroine Dora as a 10-year-old who goes on city adventures with a group of new friends. Nickelodeon celebrates Dora the Explorer with a toy and licensing program that combines the heroine with top toy trends from leading toy manufacturers, such as Mega Bloks, Fisher-Price, and Briarpatch, including Skate and Spin Dora & Boots, Dora Sizzling Surprises Kitchen, and Dora the Explorer Carnival Fiesta Game. Nickelodeon will also release SpongeBob Hot Wheels from Mattel and a Krusty Krab Playset from Imaginext. Nickelodeon will also unveil products and new merchandising partners for Teenage Mutant Ninja Turtles, Bubble Guppies, and Team Umizoomi.
For more TV licensing coverage, see page 53 in the digital edition of The Licensing Book, which can be found at www.licensingbook.com. 30 • The Licensing Book
Spring 2013
Property Profile
Warner Bros. Consumer Products Paves a New Yellow Brick Road In Celebration of the 75th Anniversary of The Wizard Of Oz
“
No film in history is more recognizable than The Wizard of Oz. In celebration of the milestone 75th anniversary of this legendary film, Warner Bros. Consumer Products has orchestrated an impressive roster of licensees that are set to honor the film with a wonderful, creative product lineup that will excite fans of the classic film on both sides of the rainbow. With offerings in multiple categories, including toys and games, gifts and collectibles, apparel and accessories, publishing, interactive, and more, this robust licensing program will allow fans to celebrate the magic of the Emerald City for many years to come.” —Karen McTier executive vice president, domestic licensing and worldwide marketing Warner Bros. Worldwide Consumer Products
WONDROUS FACTS FROM THE WIZARD OF OZ •
The Wizard of Oz originated three of the most famous movie lines of all time: “There’s no place like home,” “Pay no attention to the man behind the curtain,” and, of course, “Toto, I’ve a feeling we’re not in Kansas anymore.” •
•
The song “Over the Rainbow” was nearly cut from the The Wizard of Oz because studio executives felt it made the Kansas sequence too long.
• • •
•
Spring 2013
According to the Library of Congress, The Wizard of Oz (1939) has been seen by more people than any other movie.
•
The ruby slippers were donated anonymously to the Smithsonian’s National Museum of American History in 1979. The slippers are one of the most asked about artifacts at the Smithsonian. Toto’s real name was Terry. She was a Cairn Terrier who appeared in more than a dozen films.
The horses in the Emerald City palace were colored with Jell-O crystals. Their scenes had to be shot quickly, before the horses started to lick off the sugary dye.
The Wizard of Oz cost more than $2.7 million to make, an unheard of figure in 1938.
Several other actresses were considered for the role of “Dorothy” before Judy Garland was cast, including Shirley Temple.
The Licensing Book • 31
Property Profile
TOYS AND GAMES
Glamour Dorothy Gold Label Barbie, from Mattel
Licensing partners are offering up toys and games across multiple categories in support of the 75th Anniversary of The Wizard of Oz. Master toy partner Jazwares will offer role-play items and 5-inch fashion dolls based on the film, and Rubie’s Costume Co. will give children and children-at-heart the chance to dress up as their favorite characters with a new collection of costumes. Mattel will unveil three new Pink Label Barbie dolls in sculpted likenesses, in addition to the Glamour Dorothy Gold Label Barbie, which features a re-imagined gingham gown. Adora is presenting a new set of 6-inch Marie Osmond The Wizard of Oz dolls and will continue to offer the popular 20-inch ToddlerTime Babies based on The Wizard of Oz characters. USAopoly’s The Wizard of Oz Monopoly will delight fans with a pop-up game board center and custom-sculpted houses and hotels. Additional toy and game partners include Promotional Partners, Lionel, Madame Alexander, Tonner, and Round 2.
Wicked Witch of the West costume, from Rubies Costume Co.
The Wizard of Oz Monopoly Game, from USAopoly
Marie Osmond The Wizard of Oz Dorothy, from Adora Dolls, from Jazwares
Wicked Witch of the West, from Enesco-Jim Shore
The Wizard of Oz Mr. Potato Head, from Promotional Partners
GIFTS AND COLLECTIBLES
From traditional to playful collectibles and gifts, licensees supporting The Wizard of Oz include Funko, which offers creative vinyl figures inspired by Oz’s most famous characters; Enesco-Jim Shore with detailed figures; Ceaco with puzzles inspired by Thomas Kinkade renditions of moments from the film; and San Francisco Music Box, Westland Giftware, and Bradford Exchange with assortments of memorabilia to celebrate the movie. Other partners include Hallmark, Lenox, ICUP, Kurt Adler, Linda Jones Ent., and The Noble Collection.
32 • The Licensing Book
Winged Monkey, from Funko
Oz Clicking Heels Musical Figurine, from The San Francisco Music Box Company
Spring 2013
INTERACTIVE AND GAMING
Dorothy’s not in Kansas anymore, and the story of Oz is going digital through new technologies thanks to gaming licensees. Spooky Cool extends its Facebook game into iOS and will offer new social casino games on both platforms. WMS continues to create slot machines inspired by the classic tale, including the upcoming Haunted Forest and Emerald City games, which feature the Gamefield xD gaming cabinet configuration. Jersey Jack is launching the first The Wizard of Oz pinball machine with an interactive play-field, lights, and sound effects, and more than 40 video clips to enhance the retro-gaming experience.
Haunted Forest and Emerald City Slot Machines, from WMS
Pinball Machine, from Jersey Jack
APPAREL AND ACCESSORIES
Ruby Slippers Necklace, from Jacmel
When fans of The Wizard of Oz see what the apparel and accessories licensees have lined up to support the 75th Anniversary, they will want to click their heels together a few times. Licensee Changes will showcase a line of T-shirts and apparel featuring Dorothy and her friends and foes. Jacmel will offer a line of accessories, including a ruby slippers necklace. Additional partners include Ripple Junction, Richard Leeds, and Accutime.
T-Shirts, from Ripple Junction and Changes
PUBLISHING AND STATIONERY
Fans of The Wizard of Oz can write a fantastical story of their own with artistically designed notebooks, stationery, and more from Mead. A calendar featuring the ruby slippers will help keep aspiring writers on top of their deadlines. Readers will love Capstone Publisher’s The Wizard of Oz Movie Picture Book. Also supporting The Wizard of Oz with stationery and publishing product lines are HarperCollins, Paperhouse, Culturenik, Global Prints, Trends, Mondo, Becker&Mayer, and Worman. Calendar, from Mead Journal, from Culturenik
Spring 2013
The Licensing Book • 33
Video Game Licensing
Blurring the Lines of reality and Fantasy Video game-licensed products bridge the gap between real life and fictional worlds.
by Marissa DiBartolo
S
ome players devote hours to their favorite games,
ment and licensing at Blizzard Entertainment.
with other gamers, and immersing themselves in
and fictional gaming worlds. Skylanders is a kids’ en-
often transcend gaming consoles, with gamers de-
video game world through narrative, action-filled game
of the characters, stories, and fictional worlds
users become Portal Masters and work to save Sky-
fixating on advancing to higher levels, interacting
new worlds. Video games with a strong narrative manding extended consumer products to get more
they love. Gaming companies allow fans to in-
play. In Skylanders Spyro’s Adventure, released in 2011, lands by putting frozen Skylanders creatures onto the
Portal of Power, which brings them to life in their world
including apparel, accessories, costumes,
franchise with Skylanders Giants, featuring mega-sized
publishing, soundtracks, toys, party supplies, and tabletop games.
Diving Deeper
For Blizzard Entertainment, pub-
lishing is the top consumer product
category for World of Warcraft, one
of its top gaming properties. Novels
such as Jaina Proudmoore: Tides of War,
a World of Warcraft novel by New York Times best-selling author Christie Golden, serve as the perfect medium to give fans exactly what they want: more of the game’s fantasy
world. “We are really trying to entertain our players consistently throughout the
34 • The Licensing Book
tertainment franchise connecting physical toys to a
corporate their favorite games into the real
world through consumer product lines,
Collector’s Edition Halo Master Chief costume, from Rubie’s Costume Co.
Activision is also bridging the gap between reality
inside the game. Last October, Activision expanded the
Giants and new LightCore characters. The next install-
ment of the franchise, set for release this fall, is Skylan-
ders Swap Force. In this new title, Portal Masters can
reconfigure 16 Swap Force characters into more than
250 unique combinations. Kids can mix and match
characters’ powers and moves and then bring them to
life in the game. The
Skylanders
franchise has achieved more than $1 billion in
U.S. retail sales, in-
cluding
accessories
and figures. In addition to the collectible
figures
and
video
year and throughout the world. There’s a
games, the Skylanders
and learn more about the characters in
sumer products, in-
higher demand for wanting to see more our games,” says Matt Beecher, vice president of global business develop-
are featured on con-
cluding apparel from
Isaac Morris, tabletop
Spring 2013
Video Game Licensing
games from Pressman Toy, and construction toys from Mega Bloks. “As new and returning fans embrace Skylanders, we’ll continue to further develop our licensing portfolio with creative product extensions across categories that resonate with our core audience,” says Ashley Maidy, head of global licensing and partnerships at Activision.
games and other years there is nothing new happening with the product, that is our long-term No. 1 gaming property,” he says.
Dynamic Characters
When it comes to role play and costumes, video game licensing success is reliant on other elements in addition to a strong narrative. “I think it has to do Expanding the Franchise with the playability of the game and the boys’ T-shirt featuring Skylanders appeal of the character,” says Beige, Video game properties with multiple characters, from Isaac Morris “There are some games out there that spin-offs, sequels, or expansions can remain on top of the market for years. According to have great narrative, but for whatever reason the perBlizzard son isn’t inspired to dress like the key character.” MasBeecher, markets its con- ter Chief, however, is inspiring for Halo fans. Rubie’s products produces three different quality Master Chief costumes sumer alongside new game for adults, including a high-quality version for serious releases. The com- collectors. Since the game is rated “M” for Mature, pany utilizes aggre- Rubie’s does not make Halo costumes in child sizes. In product addition to Halo, Rubie’s produces costumes based on gated destinations so that the World of Warcraft, Sonic the Hedgehog, Pokémon, merchandising dis- Mortal Kombat, and Skylanders video game properties. Activision expands its Skylanders characters with plays include the new gaming software as each new game. Each character has his or her own back well as the available story, special powers, and a unique look. Characters fall consumer products. into eight different categories: water, tech, earth, magic, Skylanders Pop ’n Race Game, This makes it easier fire, undead, life, and air. Along with new characters from Pressman Toy for players to find the come new collectible figures, more costume opportunilicensed merchandise when they venture out to pur- ties, and expanded gaming content. With so many dychase the game. “When we launch our games, it’s very namic characters for kids to collect and connect with, similar to a feature film launch,” says Beecher, “We the Skylanders have gone beyond the games and have want to have that type of presence at retail when our been featured on trading cards from Topps, novels from Penguin Publishing, and plush from Just Play. expansions come out.” Licensed products give gaming companies such as Microsoft’s Halo franchise is in its 12th year; the most recent installment, Halo 4, released on November Blizzard, Activision, and Microsoft the opportunity to 6. The game grossed more than $220 million in the first engage fans outside of the actual games. Expanded con24 hours of its release. However, consumer products tent, exciting spin-offs, and dynamic characters can can also thrive in the market without the release of a allow for successful apparel, publishing, toy, and accesnew title or expansion. According to Howard Beige, sory product launches. Consumer product programs CEO of Rubie’s Costume Co., the Master Chief charac- for gaming properties allow fans to experience the ficter from the Halo franchise is a costume that sells well tional worlds they engross themselves in, even while year after year. “Even though some years there are new they are stuck in the realm of reality. ••••
36 • The Licensing Book
Spring 2013
Assassin’s Creed Transcends Video Games
Initially launched in 2007, the first five Assassin’s Creed games, from Ubisoft, have sold more than 55 million units worldwide, and the franchise is now established as one of the bestselling series ever. Recognized for having rich storytelling components, Assassin’s Creed has transcended the video game space by branching out into other entertainment experiences, including comic books, mobile games, novels, and a feature-length film currently in development. Top licensees for the brand include McFarlane Toys with action figures, accessories, and replicas; BioWorld with T-shirts, accessories, hoodies, and backpacks; Fathead with giant wall clings; Cryptozoic with an Assassin’s Creed board game; and Penguin with the Assassin’s Creed Black Flag novel.
MacFarlane Toys’ Edward Kenway from Assassin’s Creed IV Black Flag figure
Partners Sign on for New Starcraft Game
BradyGames has been granted the rights to develop and publish the official strategy guide for Blizzard’s StarCraft II: Heart of the Swarm PC game. The guide features information on units, characters, mission walkthroughs, and strategies for both beginners and battle-tested StarCraft veterans. In addition, Fabryka Slow and Record Galera will each produce StarCraft novels. Blizzard has extended its licensing agreement with GB eye for the poster category in Europe, Australia, and New Zealand. Posters will feature some of the best sci-fi and fantasy illustrations from StarCraft. Blizzard has granted licensed apparel and accessories categories to NetEase Inc. in China. Through this expanded partnership, NetEase will leverage both the game and licensed products to better service the large Blizzard gaming community within China for StarCraft II. iCover will develop mobile and tablet cases for Starcraft II. The cases will include artwork from Blizzard’s archive as well as new art in support of game launches and will only be available in South Korea.
Sonic the Hedgehog Spin Dashes in Toys, Apparel
The iconic blue hedgehog, Sonic, licensed by Sega of America Inc., continues to make his appearance on consumer products this year. Though there are about 60 licensees in the Americas for Sonic, the brand excels most in the toys and apparel product categories. Master toy partner Jazwares has action figures based on Sega’s Sonic and the Black Knight, including the 5-inch metallic figures Sonic Sir Lancelot and Sonic Excalibur Sword, both for kids ages 4 and up. NKOK has a new Sonic R/C car, the 614 Sonic SART R/C, featuring the hedgehog behind the wheel of a sleek, matching blue sports car. The R/C vehicle is designed for children ages 6 and up and will be available in May. A top apparel partner for the brand, Isaac Morris, has boys’, girls’, juniors’, and men’s apparel, including T-shirts, fashion tops, apparel sets, and swimwear.
Spring 2013
Another top partner, Bioworld, has a complete line of Sonic-branded apparel, accessories, and electronics, including Tshirts, fleece, hoodies, headwear, backpacks, headphones, earbuds, USB drives, hosiery, slippers, flip flops, belts, buckles, wallets, loungewear, and underwear. Two new Sonic games will be released later in the year, including one title from the Olympic franchise. Other key licensees for the brand include Accessory Innovations for kids’ accessories and Skinit for device skins and covers. Other product categories include stationery, time pieces, personal care, novelties, food and beverage, party goods, bedding, redemption prizes, and sporting goods.
Sonic fanny pack (left) and over-the-ear headphones (right), from Bioworld
The Licensing Book • 37
Video Game Licensing
Halo Celebrates 12th Year with Raft of New Products
Microsoft’s Halo is in its 12th year; the first game, Halo: Combat Evolved, launched on November 15, 2001. Halo 4, which was released on November 6, is the best-selling Halo title ever released on Xbox 360, grossing more than $220 million in the first 24 hours of its release. Halo products have sold more than $3.7 billion across the franchise’s history (including games), and more than 50 million Halo games have been sold worldwide. The Halo brand has more than 35 licensed merchandise partners, which ship more than 500 Halo skus each year. Categories include collectibles, action figures, construction sets, novels, comics, art books, strategy guides, digital books, soundtracks, DVDs, Blu-rays, apparel, accessories, board games, headphones, mobile cases, avatars and themes, skateboards, and mobile gaming systems. The first live-action web series, Halo 4: Forward Unto Dawn, had more than 53 million views on machinima.com. Anderson Merchandisers has North American distribution rights for Halo 4: Forward Unto Dawn DVDs, Blu-rays, and digital distribution. Internationally, Content Media has sold the web series to 26 countries and will be releasing the series on DVD, Blu-ray, and Video on Demand beginning with the UK in May.
Microsoft has new deals and products for the brand this year, including Halo: Silentium, by Greg Bear, the final novel in the Forerunner Saga trilogy, which released in print and digital form on March 19, and the audio book released in April. Also in the publishing category, Halo 4: Visual Guide, from DK Publishing, will release this fall and will contain 220 entries from the Halo 4 game universe. In addition, the Halo 4: Volume 2 soundtrack released digitally in April. In the toy space, Square Enix Play Arts will have collectible, highly articulated figures of Sarah Palmer and Spartan Soldier in June, Sideshow Collectibles will release the Master Chief statue this summer, and 3A Toys will release Carter and Spartan Mark V Commando. In the fall, Mega Bloks will release a full line of construction builds, including a new ONI: ReapX line that contains builds for the UNSC Siege Bike and the UNSC Light Assault VTOL (Vertical Take Off and Landing) with lights and sound. Collectible Sarah Palmer, from Square Enix Play Arts
New Pokémon Games Lead the Brand’s Licensing Path
The Pokémon brand was launched in Japan in 1996 and is now one of the most popular children’s entertainment properties worldwide. The Pokémon Company International, a subsidiary of The Pokémon Company in Japan, manages the property outside of Asia and is responsible for brand management, licensing, marketing, the Pokémon Trading Card Game, the animated TV series, home entertainment, and the official Pokémon website. New game titles will be released in October, including Pokémon X and Pokémon Y. Both games will be exclusive to the Nintendo 3DS system. The games will feature new Pokémon, a new storyline set in a 3-D world, and dynamic battles. Pokémon X and Pokémon Y will be the basis for new animation, new additions to the trading card game, and new toys debuting throughout the year.
Top partners for the brand include Ultra Pro with trading card game accessories; BDA with video game accessories; FAB/Starpoint with back-to-school, stationery, and home décor; apparel partners Hybrid Apparel and Mighty Fine; Amscan with party goods; Rubie’s Costume Co. with costumes; and The Northwest Company with domestics. Tomy International, global toy partner for the brand, will have new products that integrate Pokémon’s key play patterns, including catching, training, and battling. Featured introductions to the line include a range of figures, R/C characters, novelty, basic plush, and new battle play sets for Pokémon fans of all ages. Tomy International will also be the first to market with themed toys based on Pokémon Black 2 and Pokémon White 2 video games and toys based on the newest games Pokémon X and Pokémon Y.
Pokemon R/C Training Figures, from Tomy International
38 • The Licensing Book
Spring 2013
Swap Force Is the Next Giant for Skylanders
In 2011, Skylanders Spyro’s Adventure, from Activision Publishing characters. Skylanders Swap Force also delivers high-resolution Inc., originated a new play pattern that bridged physical and vir- graphics that bring the game’s detailed characters and rich envitual worlds across multiple platforms. Last October, Skylanders Gi- ronments to life, completely immersing players in the gameplay ants further evolved the genre and added the mega-sized Giants like never before. A full licensing program supports the Skylanders franchise and LightCore characters to the collection of interaction figures with more than 135 licensees worldwide in categories including that have helped the franchise achieve more than $1 billion in U.S. plush, apparel, home décor, bed and bath, party goods, board retail sales, including accessories and figures. games, and back-to-school items. Global partners for The next installment of the franchise, set for rethe brand include Mega Brands with construction lease this fall, is Skylanders Swap Force. The game feasets and puzzles, Penguin Publishing with novels and tures an all-new innovative play pattern: swapability. annuals, Power A (BD&A) with carrying cases, Topps The game lets Portal Masters reconfigure 16 Swap Force with trading cards, Rubie’s Costume Co. with characters into more than 250 unique combinacostumes, and Zappar with augmented realtions. Kids can mix and match characters’ ity content. powers and moves and then bring them to In addition, U.S. partners include Amerlife in the game. Fans of the franchise can ican Greetings with party goods and also play Skylanders Swap Force with their greeting cards, Leomil with footwear, Just entire collection of characters from both Skylanders Spyro’s Adventure and Skylanders Gi- Skylanders Swap Force Blast Buckler figure (half Blast Play with plush, FAB with back-to-school Zone, half Wash Buckler) on the Portal of Power products, Thermos with lunch kits and ants, now with the capability of jumping. FUNtainers, Franco with bedding, HybridSkylanders Swap Force features 16 new Swap Force characters, along with 32 core Skylanders characters JEM with T-shirts, Isaac Morris with sportswear, Mad Dog with (16 completely new Skylanders and 16 new versions of fan-fa- sleepwear, Pressman Toy with board games, and USAopoly with vorite characters from previous games) and eight new LightCore a Monopoly game.
World of Warcraft Expands Fan Offerings
Publishing partners for Blizzard Entertainment’s World of Warcraft include Fabryka Slow with novels in Poland, Galera with novels in Brazil, and Udon Entertainment with a World of Warcraft tribute art book. Udon will be reaching out to the World of Warcraft community for art submissions to be published this year. Blizzard has also extended licensing rights to GB eye for the poster category in Europe, Australia, and New Zealand. Fans can test their knowledge of a world of magic, mystery, and limitless adventure with Trivial Pursuit: World of Warcraft Edition, from USAopoly. Fans
Spring 2013
can show off their WOW knowledge by acing 600 questions across six categories, including geography, player characters, lore, loot, villains, and encounters. The game features a custom die and customsculpted baby murloc movers, and is designed for 2 to 36 players ages 12 and up. NetEase Inc. has licensed apparel and accessories for China, and Robe Factory has licensed robes and towels for North America. Classic Imports has produced World of Warcraft drinkware, including mugs, glassware, and water bottles featuring fantasy illustrations from the game. In addition, iCover has been granted the rights to develop mobile and tablet cases for the gaming brand.
The Licensing Book • 39
Video Game Licensing
Mortal Kombat Packs a Punch
Based on the nostalgic arcade console, Mortal Kombat is an actionfighting video game now owned by Warner Bros. Mortal Kombat was launched as an arcade game in 1992 and just finished celebrating its landmark 20th anniversary. This year, Sideshow Collectibles and Pop Culture Shock Toys have introduced Sub Zero, the first in Pop Culture Shock’s new line of Mortal Kombat life-sized busts. The limited-edition collectible measures 22 inches tall and comes with a signed certificate of authenticity. Last year, Jazwares introduced the Mortal Kombat Super Deformed Action Figures, and Rubie’s Costume Co. continues to see success with its Mortal Kombat costumes for adult men and women. The costume line includes characters such as Scorpion, Sub-Zero, Raiden, Kitana, and Mileena. Some characters are available in two different versions, and Rubie’s also produces masks and weapons based on the gaming property. Scorpion costume, from Rubie’s Costume Co.
Just Dance Parties into Licensing Just Dance, from Ubisoft, is the world’s No. 1-selling dance game franchise. With more than 35 million units sold to date worldwide, the game has become a cultural phenomenon, winning the Nickelodeon Kids’ Choice Awards for “Favorite Video Game” and the Teen Choice Award for “Choice Video Game.” Just Dance is also currently part of the Active Play PALA+ Challenge, a collaboration between the Entertainment Software Association (ESA) and the President’s Council on Fitness, Sports & Nutrition (PCFSN). Top licensees for the brand include BioWorld with T-shirts and BuySeasons with party supplies. Just Dance T-shirt, from Bioworld
Pac-Man Crosses Generation Lines
Since its debut in 1980, Pac-Man has become the highest grossing video game in history. With 94 percent international property awareness, Pac-Man is now seen as one of the most influential gaming brands of all time and enjoys a reach that has stretched into TV, music, and merchandising. The Pac-Man game has been developed for numerous platforms and has spawned many sequels. Recent game releases include Pac-Man Party for Nintendo Wii; Pac-Man Championship Edition DX for PS3 and Xbox 360; arcade games PacMan Battle Royale and Pac-Man’s Arcade Party; and multiple titles for mobile devices, including iOS, PC, PC Online Game, and SNS. Namco Bandai Games Inc. continues to sign new licensees for the
40 • The Licensing Book
brand, including UK apparel specialist Poeticgem with a line of nightwear. USAopoly unveiled Yahtzee: Pac-Man Collector’s Edition at American International Toy Fair in February. The game comes complete with a collectible Pac-Man dice cup and six custom dice featuring Pac-Man’s ghost enemies and coveted fruits. Designed for kids ages 8 and up, the game can be played with one or more players. Also from USAopoly is the 550-piece PacMan Collector’s Puzzle featuring an action maze from the classic video game. A derivative of the classic brand, a stereoscopic, 3-D animated series, Pac-Man and the Ghostly Adventures, will premiere on Disney XD in the U.S. on September 7. 41 Entertainment has been appointed as the worldwide master agent on behalf of Namco Bandai Games to represent the brand. Pac-Man and the Ghostly Adventures, produced by Arad Productions, has nearly 50 licensees signed on for a full range of kid-targeted merchandise, including toys, tabletop games, puzzles, costumes, sleepwear, and candy novelties.
Spring 2013
Nintendo Takes Over the Toy Aisle
Nintendo of America Inc. has signed new toy partnerships for this based on a library of iconic Nintendo characters, including Mario, year, while previous partners are introducing new skus to their Luigi, Donkey Kong, Princess Peach, Link, and Zelda. In addition, Nintendo offerings. Tomy International introduces its Mario Kart Jakks’ Halloween costume division, Disguise Inc., has been granted the rights to offer Halloween costumes and 7 toy line, including a die-cast assortment featuring Mario, Luigi, accessories based on Nintendo properties. The liYoshi, and Toad; and a Mario Kart 7 Travel Playset. In addition, censing agreement allows Jakks Pacific to manufacture, Tomy will unveil three new Mario distribute, and market toys, games, playthings, novKart 7 R/C vehicles, and the Mario elties, plush, key chains, and costumes worldKart 7 Sky Circuit Set for kids ages wide (excluding Japan and Korea). Jakks is 6 and up. expected to launch the new product line at reKids can get behind the wheel with tailers nationwide next spring. the Large Radio Controlled Donkey New, officially licensed building Kong, Toad, and Luigi, from Goldie sets, from K’nex, are inspired by International, part of the Mario the most popular Super Mario Kart Wii line. Kids can take the game titles such as New Super controls of a real-life Mario Kart Mario Bros. Wii, Super Mario and experience all the excitement 3DLand, and New Super Mario Bros. 2. of kart racing in their own homes. The new Super Mario building sets join The new large 1/8-scale figures sit in their Super Mario Cannon Set, from K’nex the K’nex Mario Kart Wii building set matching race kart and come with a conline and are designed for young Nintendo fans ages 6 and up. troller. The R/Cs are designed for kids ages 8 and up. Jakks Pacific Inc. has been granted rights to manufacture, mar- K’nex has also added Mario Kart 7 to its Mario Kart Wii Building ket, and distribute a line of toys and related consumer products Set line, set to hit retail shelves this fall.
Tetris Gears Up for 30th Anniversary
Since its creation in 1984, the Tetris brand has been licensed to video game publishers worldwide, including Electronic Arts (EA), Nintendo, Capcom, Konami, and Sega. Tetris has been released on more than 50 platforms and translated into more than 50 languages. The brand is gearing up to celebrate its 30th anniversary next year. Tetris Holding LLC is the owner of the Tetris intellectual property worldwide, and The Tetris Company LLC is its exclusive licensee. Licensing Works! represents The Tetris Company in all categories of merchandise licensing, and Blue Planet Software Inc. handles all electronic Tetris Light, from Paladone
Spring 2013
licensing for the Tetris brand. Tetris-branded products are available in more than 185 countries. Hasbro has two new co-branded Tetris products releasing this summer. Bop It! Tetris challenges players to match the Tetris shapes as the challenges get faster and faster. The game features hundreds of puzzles and both solo and social play. With Jenga Tetris, players must push, pull, and stack Tetris shapes into a Jenga tower. The goal is to build the tower as high as possible. Both games are for children ages 8 and up. Licensee Paladone also has a line of new Tetris gift products for this year, including the Tetris Light, the Tetris 5-in-1 Multitool, and the Tetris Desk Tidy. New from EA’s All Play Label is Tetris Blitz. This fast-paced game challenges players to race against the clock and contains fresh features and visuals for the ultimate Tetris experience. Available this spring for both Apple and Android smartphones and tablets, Tetris Blitz is EA’s first ever freemium Tetris game.
The Licensing Book • 41
App Licensing
W
Angry Birds plush, from Commonwealth Toy & Novelty Co.
by Loren Moreno
App Licensing Remains Largely Uncharted Territory With nearly a million apps developed, how many have what it takes to duplicate Angry Birds’ success in the licensing arena?
ho are the top players in app licensing this year? Well, the list looks remarkably similar to last year, and for good reason: only a handful of apps that break into the top tier of all-time high downloads, led by Rovio’s Angry Birds, seem to be viable options for licensing. Angry Birds continues to fly over its competition after its meteoric burst onto the app licensing scene a couple of years ago. Other familiar games line up behind the feathered friends, with Lima Sky’s Doodle Jump and ZeptoLab’s Cut the Rope leading the pack. Is the app licensing category perpetually limited to the top five most downloaded apps? At least for now, it seems so. “There are so many games that surpassed the 5 million, 10 million, 20 million download mark. But when you’re talking about the leaders, there’s probably only about five or six and then there’s everyone else. And they’re behind by a long shot,” says Damon Lau, the president and founder of Round 5, which licenses the Cut the Rope brand for toys. Lau says licensing potential isn’t entirely based on high downloads. It’s also about fan engagement— are people downloading the game and continuing to play with it over time, or are they tossing it aside after a few minutes? Maybe more important than downloads: does the brand have a story to tell? Is there a character involved who fans love and want to get to
42 • The Licensing Book
know? For many of the second-tier—and even toptier—apps, the answer is no. “The app category is booming. Developers are rushing to get their app out there,” says Lau. “But I don’t believe that everyone has the capacity to take their property beyond being just a game. That’s why I think the category is fairly untapped.” When Round 5 was looking to acquire Cut the Rope to develop a line of toys, one of the initial concerns was that the app, while it featured an adorable candy-gobbling monster named Om Nom, seemed to lack a larger story. ZeptoLab, however, had animated shorts in the works featuring Om Nom and an initial trailer that boasted some 13 million views. Lau says those elements were proof that Cut the Rope was right for his company.
Cut the Rope building set, from Round 5
Spring 2013
Doodle Jump, from Lima Sky
“Now, when you take a look at the comic book that came out, I think that narrative was a key decision-making factor for us. We knew they were taking a game property and turning it into a property overall,” he says. It’s important to consider that app licensing is still a relatively uncharted frontier, especially when compared to other established forms of media, such as TV, films, books, and video games. The Apple App Store itself is less than five years old, and the platform for apps—tablets and smartphones—is also relatively new. One must assume that the potential for growth in this category is great. “It’s interesting that there are, at this early state of this medium, questions on whether Angry Birds was a one off,” says Eric Karp, chief licensing officer for Lima Sky, the company behind the perennially popular app Doodle Jump. With the tablet and smartphone platforms so ubiquitous, Karp says there are bound to be more successful and marketable programs to come out of the app space. However, he says the “modern classics” of apps may have already been established. “We’re approaching 1 million apps, which is an unbelievable number. … Out of these million, there are six or seven that have managed to get into the Top 50 and have never left. With every day that passes, it’s more and more difficult for the independent, clever, entrepreneurial developer to break into the Top 50 and stay there,” says Karp. Angry Birds has no doubt proven that app merchandising is a legitimate business. In its financial results for last year, Rovio boasted a 101 percent increase in revenue, led by its consumer products business. The consumer products revenue for 2012 was more than three times the revenue of 2011 and accounted for 45 percent of Rovio’s total revenue. Some believe it’s only a matter of time before more app brands post these kinds of results. Steve Reece, a brand and marketing development consultant in the UK, says app licensing is still in its infancy, and the low barrier-to-entry in the app space
Spring 2013
means opportunity for innovation and mass-scale development. “The final reason for believing this category is set to explode is the comparison with other forms of media. If you look at TV, even average rating TV shows on cable or satellite are getting extended licensing programs. Yet if you compare an average TV show with an app brand that only ranks as low as 20 to 30 on the app charts, the apps are seeing vastly higher user-interaction numbers, as well as a more actively engaged user base,” says Reece. So what makes a good licensed product for an app? Round 5’s Lau says it has to transcend typical logo-driven merchandise. The products should stay true to the app’s play pattern, too. It’s not enough to produce a basic plush character and call it a day. In general, Lau says he has found a lack of creativity in app-licensed products. “What we wanted to do is take a look at the trends in retail and combine that with things that make sense with the actual game,” says Lau. For example, Round 5 has produced reversible Om Nom plush that features an augmented reality (AR) hangtag that will take users to a mini-AR game on their smart device. The company, latching on to the boom in building and construction toys, also created a line of Cut the Rope building sets featuring levels from the game. For Lima Sky, Karp says the company is OK with taking its time and finding the right partners. The company is set to launch most of its Doodle Jump merchandise, including battle bots from Innovation First Labs and puzzles from Ravensburger, next year. The company also boasts an extensive list of international partners in the apparel category. In an attempt to catch up with Angry Birds, Karp says many companies went out too soon with merchandising. It’s not a mistake Lima Sky is willing to make. “There hasn’t been a ‘too late’ defined, yet. There has been too early in our segment. … It’s our firm belief that as long as we’re at the top of the charts, and folks love our brand, and they love playing the game, if we wait a couple of quarters longer to get it spot-on correct, it’s a heck of a lot better,” he says. ••••
The Licensing Book • 43
App Licensing
PopCap Gets Physical
PopCap Games has launched a comprehensive licensing program around its hit apps Plants vs. Zombies and Bejeweled. PopCap is focused on extensions that allow fans to engage with their favorite brands in fun, family-friendly ways. Current partners include Hasbro, Bioworld Merchandising, Jazwares, Funko, MjC International, LF USA, Trends International, Treehouse Brand Stores, and Walls 360. New categories launching later this year include children’s publishing, comic books, costumes, Bejewled game, from Hasbro candy, and novelties. PopCap Games has also announced the limited, regional launch of Plants vs. Zombies Adventures beta version, the first social adaptation of PopCap’s game for Facebook.
Run, Temple Run
Imangi Studios, the company behind Temple Run, recently launched its new game, Temple Run 2, which reached more than 50 million downloads in 13 days. Imangi Studios has partnered with Komar for children’s sleepwear; LF USA for adult sleepwear; Ape Comics for comics and digital; Titan Publishing for a fan magazine; Rasta Imposta for Halloween costumes; Spin Master for board games; JEM Sportwear for apparel; and Coastal Amusements for arcade games. The Temple Run brand will continue to expand into toys (non-board game), collectibles, mobile accessories, party goods, headwear, confections, home décor, and travel gear.
44 • The Licensing Book
Angry Birds Still on Top
With more than 1.7 billion downloads, Rovio Entertainment Ltd.’s Angry Birds has extended licensing agreements across retail, learning, activity parks, and consumer products. With Mattel’s Angry Birds Knock On Wood Game, kids can play Angry Birds in real life. Based on the app, kids can build, launch, and destroy with the skill and action game. Rovio brought its weekly Angry Birds Toons animated series to fans around the world, setting an industry first in launching a video distribution channel across all of its Angry Birds game titles on smartphones, tablets, and with selected TV networks around the world. Fifth Sun has created Angry Birds T-shirts and hoodies; and ComAngry Birds Knock on Wood game, monwealth Toy & Novelty Co. has a variety from Mattel of cuddly plush toys. The Angry Birds Star Wars app will come to life with licensing partner Hasbro’s Angry Birds Star Wars Jenga Death Star Game. Rovio Entertainment Ltd. built the global licensing program for Angry Birds—with hundreds of licensees—in less than two years.
Subway Surfers Enters Licensing
Subway Surfers, from SyBo, is launching a licensing program that will target kids ages 8 to 16. Subway Surfers is a fast-moving game of jumping and dodging, featuring the graffiti artist Jake, who players must help outrun the conductor and his pitbull. SyBo is finalizing its trend-driven graphic style guide, which will lend itself to textile products and vivid designs across product categories. The guide is strongly influenced by street art and will showcase the core of the brand through a variety of stylized artwork and treatments. SyBo is currently in the process of signing local agents worldwide and has already confirmed agents for the U.S. and Europe. The brand will initially focus on toys, publishing, and fashion.
Spring 2013
Cut the Rope with ZeptoLab
ZeptoLab, the entertainment and gaming company behind Cut the Rope, is creating even more ways for fans to interact with the lovable monster, Om Nom. Om Nom: Candy Flick, a new augmented reality app available on Apple’s App Store, is unlocked via a special tag that can be found on a variety of Om Nom plush toys from partner Round 5. Round 5 also introduces additional Om Nom plush, buildable play sets, and collectible micro figures available in the U.S. and Canada. Additional licensees include Mega Brands with a range of traditional and innovative puzzles, and a new line featuring augmented reality content; Toy Galaxy with a novelty line of toys, games, Om Nom reversible plush with augmented reality tag, from Round 5 and activity products; Sakar with a range of branded ear buds, headphones, cases, skins, and consumer electronics; Kellytoy with amusement and plush crane toys; and Innovative Concepts in Entertainment with a coin-operated, 100-percent skill-based merchandiser, plus a touchscreen game based on Cut the Rope. ZeptoLab’s growing consumer products program includes apparel, accessories, publishing, home, food and confectionery, footwear, and electronics. Studio Licensing Inc. and Established Brands are the assigned agents for North America.
Outfit7’s Friends Talk
Outfit7’s Talking Friends brand, with 14 characters, has a robust licensing program with nearly 30 licensees across merchandising categories. There are 22 apps to date in the Talking Friends’ app world of fully animated 3D characters of two and four-legged animals. The plush toys, from Dragon-I Toys, seamlessly talk and interact with multiple Talking Friends apps, and with each other, through an advanced sound recognition system. Other licensees include Belltex, Van der Erve N.V., Smith & Brooks Ltd., TVM Europe Gmbh, and GB eye Ltd. Outfit7 has also partnered with Paper House Productions for a full collection of regular and 3-D stickers, magnets, and wall décor. Talking Angela, from Dragon-I Toys
Spring 2013
Fruit Ninja Slices
Fruit Ninja, from Halfbrick, is expanding its already well-established licensing program internationally, signing on multiple international agents. From Scholastic comes an activity book in which Sensei helps kids get up to speed on an important math concept. A new comic book series, from Ape Comics, will release readers into the vibrant world of Fruitasia. Fans will laugh along as Sensei leads a cast of Fruit Ninja: Funtastic Fractions, new characters into messy food from Scholastic fights. Its apparel program grows with innovative styles in the U.S., as well as developing programs in the UK (Poetic Gem) and France (Van der Erve N.V.).
Doodle’s Still Jumping
Beginning this summer, Doodle Jump, from Lima Sky, will be featured in toys, games, gifts, apparel, home furnishings, books, and stationery. In the toy category, Lima Sky will join with Hog Wild for novelties, Innovation First for robotic toys, Ravensburger for board games, and Raw Thrills/Ice for arcade games. For apparel, Doodle Jump joins with AA Brands (Germany, Austria, and Switzerland), Blues (UK), Gem (Australia and New Zealand), Freeze (U.S.), Santex (Germany, Austria, Switzerland, Doodle Jump T-shirt, and Spain), Sunset Bioworld (UK), from Santex and Van der Erve N.V. (Germany, Austria, Switzerland, the Benelux, and France). Belltex (Europe) will create home furnishings, Funky Pigeon (UK) will create stationery, and Walls 360 will create Doodle Jump-branded wall graphics.
The Licensing Book • 45
Licensing 101
Picking a License
W
Part Two in a Series
by Jim Sachs
hatever the genre of product being marketed, one needs to make sure that the licensing selection makes sense. Choosing poorly makes the difference between success and failure. Here are some ideas and resources that may help in the selection process. First, go into the type of retail store or department where the product is most likely going to be sold. Look at non-competitive products with brands that could be synergistic with the product to be licensed. Check out the brands they carry. Can the product be envisioned on the shelf next to a similar brand? Attend trade shows that one would most likely attend as an exhibitor. Walk the aisles. Check out the competition and the types of licenses they are currently using. Go online to the Licensing Industry Merchandisers’ Association (www.licensing.org) There, you’ll find a database of properties, licensees, and licensors (membership fees apply). Remember that the challenge is to find a license that is not currently being applied to the product. Concentrate on good brand extension ideas for the product line. Be sure to attend the Licensing Expo in Las Vegas. The Licensing Expo features mostly entertainment properties, but there is still a good mix of agencies carrying all sorts of brand, sports, and art properties. Once you’ve winnowed some good ideas as to what will work and represent a good fit, call the licensing agency representing the selection and ask for the agent managing the property. Or, in the case of a brand or property being licensed out directly by the owner, ask for the person responsible for licensing or the vice president of marketing. Don’t be deterred if he doesn’t want to talk to start-up companies. Most of the “A” property owners are looking for existing distribution. However, if the proposed product is deemed truly unique, the licensor will be more likely to talk with you. Keep in
46 • The Licensing Book
mind that in the beginning of a foray into licensing, one may have to settle for a “B” or “C” property. This is not necessarily a negative and there is an upside to this scenario. These licensors generally will offer you more help and they are less expensive. Still having trouble reaching the right person? Hire a consultant. Consultants represent manufacturers only; agents represent intellectual properties and sell to the consultants, clients, and manufacturers. Once a connection has been made with the licensing executive and the product is available for licensing, ask for a deck. This will reveal the value of the property and specifically delineate its DNA (e.g. demographics, current core distribution, promotions, and partnerships). Be sure to find out who the existing licensees are and who they are currently selling in terms of retail. Find out from the licensor how they will support your marketing and sales efforts. The days of “take this license and just pay me quarterly royalties” are long gone. Licensing is a two-way street. There has to be an active partnership between the licensee and the licensor. If the licensee does not use whatever resources the licensor has to offer, its path to success will be that much harder and longer. Once the final selection has been made, get in touch with retail buyers to get their opinion. Simply ask them if it’s a good fit and whether they would be interested in carrying the product. If the company doesn’t have existing retail distribution, walk into retail stores and ask the store or department manager what they think. If the feedback is positive, it’s time to go back and pitch the product to the licensor. In the next segment, we will cover how this is done. ••••
Jim Sachs has 30 years of licensing business experience and has served as vice president of sales, marketing, and licensing at Chein Industries. He spent the past 10 years in partnership with Steve Harris at Harris-Sachs LLC Licensing.
Spring 2013
The
Blues
Of Counsel
Licensing 101, Part 68
by James Kipling, Of Counsel
(This article is the 68th in a series devoted to the negotiation and documentation of the licensing relationship, and elements of a typical license agreement.)
G
“
rey market goods” is the designation commonly used for authentic products intended for other markets that find their way into the U.S. (or other territory) even though, by contract, such importation should not occur. The policy of U.S. Customs regarding admittance of grey market goods into the U.S. has been modified several times over the years, and it has been difficult for a licensee to determine whether U.S. Customs will permit or prohibit the importation of licensed products that are, at least in theory, contractually restricted to regions outside the U.S. The situation has become clearer, but more difficult for all concerned, as a result of a decision rendered earlier this year by the U.S. Supreme Court in a case brought by book publisher John Wiley & Sons against an importer of books.
Territorial Restrictions
A license to manufacture and sell licensed articles that are copies or modified versions of a copyright-
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protected work often grants rights that are not worldwide in scope. Such a license agreement routinely includes language that prohibits the licensees from making sales outside the defined “licensed territory,” as well as prohibiting sales to any entity that is likely to export the licensed articles outside the licensed territory. While typically providing that improper exportation by the licensee can constitute a material breach leading to termination of its license (often coupled with financial penalties), an agreement prepared by a licensor rarely includes language protecting the licensee against improperly imported licensed articles. Since its own rights are limited geographically, the licensee must assume that rights for the same categories of licensed articles will be granted to one or more licensees for sales in other territories. If a question is raised Grey Market Goods: by the licensee about the possibility of grey market goods The designation commonly used for affecting its market, the licensee authentic products intended for other can expect to be reassured by the markets that find their way into the licensor that all of its agreements U.S. (or other territory) even though, include the same sorts of restricby contract, such importation should not occur. tive language that the licensee
The Licensing Book • 47
has in its own agreement. However, a circumspect licensee might ask the licensor to undertake some form of obligation as part of the license agreement: (i) that it will take action to enforce such restrictions against other licensees, should grey market goods appear in our licensee’s territory, or (ii) that it will provide some remedy to the licensee if such unauthorized importation occurs.
essential factor that resulted in Wiley’s losing the case was that, for the first time, the majority of the court held that purchases made outside the U.S. enable the “first sale doctrine” of the U.S. Copyright Act to apply to the purchased products. That doctrine permits the purchaser of a lawfully produced copyrighted product to re-sell or otherwise distribute the purchased product in any way it wishes, and without authorization of the owner of the copyright. Since Wiley’s foreign licensee lawfully manufactured the books the importer purchased in Wiley, the fact that the licensee could not legally ship the books to the U.S. has no effect upon their importation by the purchaser. The Wiley decision apparently clarifies long-standing uncertainty about the effectiveness of territorially restrictive language in license agreements for the manufacture of products—at least with respect to disposition of those products by purchasers, whether purchased inside or outside the U.S.
New Complication
Plan B
In the Wiley case, the defendant-importer had purchased certain English-language books manufactured outside the U.S. by an authorized Wiley licensee, and had imported the books into the U.S. for sale to retailers. The importer made the purchases in Thailand, where the books were available at retail at extremely low prices. In fact, the importer was able to purchase the books in Thailand, ship them to the U.S., and sell them to U.S. retailers more cheaply than Wiley’s own domestic prices to retailers for identical books. Because the Wiley licensee’s manufacturing license agreement limited distribution to non-U.S. territories, Wiley based its action against the importer upon those contractual restrictions. Without going into all of the nuances of the case that resulted in a split-decision by the court, the
48 • The Licensing Book
Of course, this result will work to the detriment of a U.S.-based licensee in the event of third-party importation of the same licensed product that is subject to its own licensed rights. Since it knows that its licensor now is unable to protect its domestic market from cannibalization by identical products legally produced and purchased outside the country, what are its alternatives? A circumspect licensee will be aware of this likelihood and seek to define anticipatory remedies in its license agreement. For example, a licensee negotiating for rights to a property for exploitation in North America might require of its licensor that all third-party license agreements for the property must prohibit use of the English language. This requirement can be broadened so that all third-party license agreements for products in our
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licensee’s categories must be limited to use of only those languages pertinent to the respective local markets. However, this will be of limited benefit if language is not particularly significant to marketability.
Plan C
Because of the potentially devastating impact that uncontrolled importation of grey market goods could have, an aggressive licensee might also negotiate for financial relief in the event of such occurrences. One form of such relief might be formulaic cancellation of a substantial portion of the minimum royalty guarantee, in the event that grey market goods become a significant problem. Another approach might be to provide relief in the form of a reduction in royalty rate for those licensed products most directly affected by the grey market goods. Combined with reduced minimum royalty guarantees, such a provision may go some distance toward bringing relief to the licensee, as well as toward giving the licensor incentive to take preventive action. One avenue to consider would be to cancel the pertinent foreign license agreement immediately upon appearance of grey market goods within U.S. commerce. As a result, the offending products can no longer be “lawfully manufactured” and the first sale doctrine can no longer exempt their importation.
“
become under the Wiley decision), the negotiation of such terms is worth the effort. Because certain industries are more likely affected by grey market goods than others, the decision of whether to force the issue will be made on a case-by-case basis. When a licensee’s business can be severely affected, a bit of aggravation in the negotiating process is certainly worthwhile.
When a licensee’s business can be severely affected, a bit of aggravation in the negotiating process is certainly worthwhile.”
Worth the Effort?
There will be stress between the parties in negotiating the applicable provisions, but if grey market goods are a likely problem (as they certainly may
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The Other Shoe
In most industries, counterfeit products have a much greater financial impact than grey market goods. Because there is less uncertainty regarding enforcement by the Courts and U.S. Customs of intellectual property rights against counterfeits than against gray market goods, there should be less licensor resistance when a licensee requests assurances that action will be taken against counterfeits. This will be the subject of a future article in this series. •••• 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, Ohio, and can be reached at (513) 977-8536, or jim.kipling@dinsmore.com. Copyright: ©2013 James M. Kipling. All rights reserved.
The Licensing Book • 49
Directory of Properties, Products and Services STATEMENT OF OWNERSHIP, MANAGEMENT, AND CIRCULATION: REQUIRED BY 39 U.S.C. TITLE OF PUBLICATION: THE LICENSING BOOK. PUBLICATION NO. 716-730. FREQUENCY OF ISSUE: QUARTERLY. NUMBER OF ISSUES PUBLISHED ANNUALLY: 4. ANNUAL SUBSCRIPTION PRICE: $48. COMPLETE MAILING ADDRESS OF THE HEADQUARTERS OF GENERAL BUSINESS OFFICES OF THE PUBLISHER: 307 7TH AVE, ROOM 1601, NEW YORK, NY 10001. FULL NAMES AND COMPLETE MAILING ADDRESSES OF PUBLISHER AND EDITOR: PUBLISHER, JONATHAN SAMET, 307 7TH AVE, ROOM 1601, NEW YORK, NY 10001; EDITORIAL DIRECTOR, JACKIE BREYER, 307 7TH AVE, ROOM 1601, NEW YORK, NY 10001. OWNER: ADVENTURE PUBLISHING GROUP, INC., 307 7TH AVE, ROOM 1601, NEW YORK, NY 10001.
EXTENT AND NATURE OF CIRCULATION: Avg. No. Copies Each Actual No. Copies Single Issue Issue During Preceding Published Nearest to Filing 12 Months (6 issues) Date Total No. Copies Ligitimate Paid and/or requested Distribution 1. Outside Counrty Paid/ Request Mail Subscription 2. Sales Through Dealer and Carriers, Street Vendors, Counter Sales, and other Paid or Requested Distribution outside USPA Total Paid and/or Requested Circulation 1. Outside Counrty Nonrequested Copies 2. Nonrequested copies Distributed Outside the Mail (include Pickup Stands, Tradeshows, Showroom, and other sources) Total Nonrequested Distribution Total Distribution Copies Not Distributed Total Percent Paid and/or Requested
12,287
11,648
10,943
10,757
34
35
10,977
10,792
235
239
763
300
998
539
11,975
11,331
312
317
12,287
11,648
92%
95%
Adventure Publishing Group..................................................................................................................................................27 CBS ...................................................................................................................................................................................1, 2 Gateway Licensing................................................................................................................................................................50 GM Licensing .......................................................................................................................................................................50 Harris-Sachs ........................................................................................................................................................................50 HBO ....................................................................................................................................................................................15 LIMA ...................................................................................................................................................................................51 MTA ..................................................................................................................................................................................8, 9 SEGA ..................................................................................................................................................................................35 Sesame Workshop ................................................................................................................................................................52 Skechers ..............................................................................................................................................................................25 The Toy Insider .....................................................................................................................................................................21
50 â&#x20AC;¢ The Licensing Book
Spring 2013
The Hub Expands My Little Pony, Transformers Properties
This year, more than 200 licensees worldwide in more than 15 categories will bring products inspired by the My Little Pony: Friendship is Magic series to the global marketplace, ranging from fashion apparel and accessories, role play, publishing, party/celebrations, and digital gaming to plush, youth electronics, home décor, trading cards, and health and beauty for girls, tweens, teens, and adults. Licensees include Mighty Fine for fashion T-shirts at specialty retailers; Fashion Playtes for customizable apparel and accessories; Disguise for role play and Halloween costumes; IDW Publishing for comic books; Little, Brown Books for Young Readers; American Greetings for greeting cards, wrapping paper, and party goods; BuildA-Bear Workshop for make-your-own My Little Pony plush; Funrise for collectible plush; Aurora for plush; Mimoco for designer USB flash drives; Enter Play for trading cards and collectible tins; and Gameloft for the My Little Pony app. Since last year, brands such as Nike, Illest, The Loyal Subjects, and New Era are breaking new ground for the Transformers franchise. Licensees for this growing property include Hybrid for T-shirts; Elan Polo for footwear; Fab for bags and backpacks; MZB Imagination for watches; Franco Manufacturing for housewares; Incipio Technologies for cell phone cases and sleeves; Bendon for publishing, board books, coloring/activity, and storybooks; Phidal for novelty books; and Cardinal for puzzles. Transformers: The Ride 3-D opened at Universal Studios Hollywood last year. Using cutting-edge HD 3-D and flight simulation technology, riders can experience what it’s like to be on the front lines of an intergalactic war between the Autobots and the Decepticons. The Universal Orlando Resort is currently preparing to open its own Transfomers: The Ride 3-D this summer. At both resorts, kids and fans have the opportunity to meet giant Optimus Prime, Bumblebee, or Megatron costumed characters as they walk around the park. Transformers retail stores are also open within each resort.
Spring 2013
NBC’s Rollout Highlights Range of Programs
NBCUniversal is rolling out a slate of new products based on current hits and classic programs, including Grimm, The Munsters, and The Biggest Loser. Breygent will produce trading cards based on Grimm. The cards will come in packs of five and will be sold at specialty stores and online. From Dynamite Entertainment, the Grimm Comic will launch in May for Free Comic Book Day and will be an ongoing, monthly title. Licensed by Monaco Entertainment, The Munsters Land-Based Slot Machine is coming to casinos around the country and will feature likenesses of the entire family, along with actual clips, voiceovers, and music from the series. The fourth location of The Biggest Loser Resort is coming to Chicago in May. The resort offers the same results-oriented program that guests have come to expect and enjoy at the company’s other locations. The Biggest Loser Resort, Chicago will be the first to feature “Four Diamond” accommodations, a championship golf course, and a 75-foot indoor pool.
Grimm Comic, from Dynamite Entertainment
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TV Licensing
The Hive Is Buzzing with New Plush Licensees
Space Enterprises, licensing agent for the preschool property The Hive, has partnered with Mookie Toys for a new range of 5- and 6.5-inch plush, from Mookie Toys. The Hive is produced by Monumental Productions, Lupus Films, and DQ Entertainment. The new line from Mookie Toys includes Buzzbee, Rubee, Postman Spider, Barnabee, Feathers, Fluff, and Worm. The larger characters say real phrases from the show and sing part of The Hive’s theme song. The Hive 35-piece puzzle and 24-piece giant floor puzzle, from Ravensburger, feature fan-favorite characters and scenes. Children can enjoy playing with their bee-dazzling buddies with a new range of The Hive play sets, from Mookie Toys. With The Hive Playhouse, children can re-enact their favorite Buzzbee adventures; they can fly through The Honeybee entrance, open the curtains to see flowers grow, visit friends at their doors, and deliver Postman Spider’s letters. The Honeydew Preschool play set includes an exclusive Ms. Ladybird character and a flying rail for the characters to whizz around school. Each play set provides for Bee family fun and adventure. All items are available at UK retailers.
Watering Can, from Mookie Toys
Ravensburger Expands Thomas & Friends Puzzle Line
HIT Entertainment has joined with Ravensburger, the exclusive distributor of WOW Preschool Toys, to add a number of new puzzles to its Thomas and Friends-based offerings. Ravensburger “builds out” its 2-D and 3D puzzle offerings with nearly a dozen fresh designs certain to delight fans all the way down the line. The Thomas & Friends Birthday Surprise puzzle features 72 pieces that click perfectly into place without glue to form a 5inch sphere. The puzzle includes images of Thomas and Sir Topham Hat. The Thomas & Friends Right on Time puzzle includes 60 pieces with movable clock hands that showcases the Islands of Sodor clock tower surrounded by images of eight other “timely” scenes with clocks showing their local time.
54 • The Licensing Book
The Thomas & Friends Farm Days puzzle includes 80 pieces and comes packaged in an easy-seal pouch, depicting Thomas on a farm surrounded by animals. Thomas & Friends Circus Fun is a 24-piece floor puzzle of Thomas pulling into the circus, presented in a suitcase box. It is also available in the same packaging is Thomas & Friends At the Airport. Thomas & Friends Quarry Time is a 35-piece puzzle featuring Thomas “making tracks” out of a rock quarry, packaged in a tin with a red handle for easy cleanup and toting. Also available is Thomas & Friends Thomas at the Windmill. Ravensburger also holds licenses for brands including Chuggington, Tinga Tinga Tales, The Hobbit, and Moshi Monsters.
Spring 2013
Fox Consumer Products to Launch New Ecommerce Store, Develop Firefly Products
Twentieth Century Fox Consumer Products has launched a new eCommerce initiative that offers a revamped and engaging user experience for consumers. In order to attract fans and offer merchandise indicative of the brands they love, Fox products will now be available in official, brand-specific shops that will roll out over the course of the year. These shops will not only feature an on-demand product offering, but also licensed and seen-on merchandise authentic to each Fox property. To kick things off, fans of New Girl, Glee, American Dad, and Family Guy can purchase all-new merchandise, view show content, and interact with their favorite brands across various social media platforms on the shows’ individual shopping hubs. The eCommerce shops will offer an increased variety and stronger product offering for on-demand merchandise introducing categories including home goods, apparel, gym gear, pet apparel, and electronic accessories. The stores will also streamline consumer searches with product lines that allow consumers to find multiple products and licensed merchandise all in one shop. Through an on-demand model, Fox is working to incorporate customizable merchandise where consumers can per-
sonalize their purchases, resulting in one-of-a-kind creations. The new online shops are engineered by MashOn Inc. and BLKBX Creative Group, which developed the creative elements for the new platform. As the official shops roll out, they will be portable and will have the potential to reside on additional partner sites. To visit the official shops,visit the following links: foxshop.com, New Girl at Newgirlshop.com, Glee at Gleeshop.com, American Dad at Americandadshop.com, and Family Guy at Familyguystore.com. Margaret Weis Productions (MWP) is partnering with Fox to publish tabletop role-playing products based on Joss Whedon’s fan-favorite TV series, Firefly. Initial releases are expected this spring, with print and digital releases based on MWP’s Cortex system. The adventures of Captain Malcolm Reynolds and the crew of Serenity continue to attract new fans a decade after the TV series first aired. Fresh from recent success, MWP’s own crew of seasoned designers and creators of licensed role-playing games, stand ready to develop an all-new series of pick-up-and-play games and game supplements. Based on much-loved characters, stories, and locations, every Firefly RPG product will be designed to be accessible, authentic, and innovative.
Zodiak Kids’ Totally Spies! Plans Summer in Versailles
Zodiak Kids’ property Totally Spies! will spend the summer at Château de Versailles in a series of original cross-promotions between Zodiak Kids CP Paris, Château de Versailles Spectacles (CVS), and TF1. The event will support the launch of the Totally Spies!’s sixth season on TF1 in September. The new season, produced by Marathon Media, a Zodiak Kids company, has been sold to Nickelodeon (German-speaking Europe, Benelux, CE Europe, Nordics, CIS, SE Asia, and Africa), Disney (France), Cartoon Network (Latin America), Teletoon (Canada), DeA Kids (Italy), and MBC (the Middle East). Key licensees Paperbox Magazine (publisher of the official Totally Spies! magazine) and Hachette Jeunesse (publisher of more than 50 novels, compilations, comics, and activity books) will also participate. Paperbox will highlight the events in its June and July issues, while Hachette Jeunesse will release a new book featuring the Spies’ Versailles mission.
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