Summer 2011 by The Licensing Book

Summer 2011

LICENSINGBOOK THE

BUILDING BUSINESS THROUGH PARTNERSHIPS

Licensing Show 2011

DEPARTMENTS 12 Publisherʼs Point 18 Stat•Shot 134 Directory 14

News Rubie’s Costume Co. signs major deal with KISS

LIMA Hall of Fame

An interview with the newest inductee, Nickelodeon’s Leigh Anne Brodsky

Hollywood Gets Ugly

Pretty Ugly LLC gears up with a new licensing strategy and a feature film hitting theaters

Summer 2011

VOLUME 28, NUMBER 2

FEATURES—SUMMER 2011

24 The State of the Industry Another year, a new paradigm shift for the licensing industry. With licensed products being used as marketing materials more than ever, how can you use media (social and otherwise) to bolster your brand? We ask our panel of experts.

41 A Winning Combination In January, two of the oldest corporate branding institutions in the world joined forces when The Beanstalk Group merged with Nancy Bailey & Associates. We take an in-depth look at how the deal came about and what’s next.

48 Licensing Show 2011 Our annual look at the industry’s biggest event, with 40 pages of coverage of the character and entertainment, corporate branding, art, publishing, and international sectors. It’s the most coverage you’ll find of the Licensing Show, anywhere.

Summer 2011

Adventures in Licensing

With Tintin on the way, Paramount’s LeeAnne Stables talks to us about the latest from Hollywood’s elite studio

Simple Tips for Getting Business Done

The Richmond Group’s Jennifer Richmond shares 10 easy things to remember when negotiating

100 LIMA Exchange

LIMA President Charles Riotto tells us what to look for at Licensing Show

119 Of Counsel

James Kipling looks at how to select the right territory in a licensing agreement

120 McHale Design

Maureen McHale tells you how to keep your products looking good

130 Direct-to-Retail and

Storytelling

Ken Markman of KKM Global Strategies tells how the DTR model lets brands tell their stories to anyone with a smartphone

132 Money for Nothing,

or Smart Business Move?

Attorneys Allan Grafman and Sean F. Kane tell you what to look for in a celebrity license

P UBLISHER’S P OINT

LICENSINGBOOK

THE

www.licensingbook.com

Cover design by Yoe! Studio

Vegas... or The Hangover 2 ? We’re going back to the archives of The Licensing Book, to October 1983 when the front cover of TLB asked ”What is at the end of the rainbow?” and featured My Little Pony with a tag line that reads: “A license worth a pot of gold.” In February 1984 the Transformers were on the cover, as they would be in 2011. The Smurfs, Barbie, superheroes—all were part of the 1983 lineup. In October 1984, Wendy's kicked off its “Where’s the Beef?” campaign in TLB and made it known that imitators, infringers, and rip-offs would not be taken lightly. See what execs had to say then, and its relevance today: “Well-established licenses offer immediate (product) identity,” said Pete Smith, Walt Disney Productions. He spoke of the ways in which Disney sought to reduce the “boom and bust” profile of licensing in creating evergreens. Licensed merchandise relates to lifestyle, said Carole Francesca, director of ABC Merchandising, Inc. “It makes a statement about the person who wears it, uses it, or plays with it. It’s part of fashion and part of show business.” “Licensing is really only a first step,” emphasized LCA’s Murray Altchuler. “It’s a strong marketing tool if the manufacturer builds onto it with good product, and then sells that product with the added excitement of the property. The most successful products have a reason for being in the marketplace.” Strawberry Shortcake was a turning point in this business. In 1983, many spoke of new buzz words created from this property, like “marketing plans” and “rollout strategies.” Retailers were jumping on the property’s bandwagon, and Ray Peterson, vice president of entertainment productions for Those Characters from Cleveland and co-developer of Strawberry Shortcake,

Summer 2011

acknowledged that retailers wanted blockbuster licenses. “I don’t know if the day of the license that builds quietly and slowly is gone, or is temporarily gone,” he said. Strawberry Shortcake and Care Bears “were created with depth and validity and are entertaining, and they should be able to sustain themselves,” he added. Then, and now, the strong connection to entertainment and toys has been a constant. “Mounting an outstanding merchandising program does not guarantee the success of a property, if the property lacks the basic elements for success,” said Bernie Loomis, president of the marketing and design service for General Mills Toy Group. “A character property that does not do well in the toy industry will have great difficulty achieving success elsewhere. Toys are significantly important in gaining the emotional hook with kids. They will then wear the clothes, buy the shoes, decorate the room, and do all the other things that carry a license forward.” So much has changed, yet so much remains the same. Licensors, licensees, and retailers must work together to create successful campaigns. Social media and technology have impacted our business. We now reach consumers directly and can shape our businesses accordingly. If you are not on the mobile bandwagon, read our Spring issue at www.licensingbook.com. We’ve moved! New address is on the right and when in N.Y. stop by. It’s a great view! If you are not receiving your issues, visit www.licensingbook.com and follow the prompts or call us. We will always be the source for this industry on everything licensing. Finally, words from Naomi Warner of Harry N. Abrams: “Licensing involves selling a piece of the magic something has already achieved.”

ADVENTURE PUBLISHING GROUP INC.® VOL. 28, NO. 3 SUMMER 2011 PRESIDENT/CO-PUBLISHER LAURIE SCHACHT laurieschacht@aol.com

CO-PUBLISHER JONATHAN SAMET jsamet@adventurepub.com

EDITOR IN CHIEF BRYAN JOINER bjoiner@licensingbook.com

ASSISTANT EDITOR MELISSA TINKLEPAUGH mtinklepaugh@licensingbook.com

CONTRIBUTING EDITORS JACKIE BREYER ELIZABETH REID PRODUCTION DIRECTOR ANTHONY K. GUARDIOLA aguardiola@adventurepub.com

ADVERTISING MANAGER AMY SHIGO ashigo@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 ENTERTAINMENT

HIT Signs Three New Major Licenses For Thomas & Friends

ENTERTAINMENT

Spin Master Launches Redakai

HIT Entertainment has signed three deals for new lines of Thomas & Friends apparel, footwear, and accessories. LF USA, a subsidiary of Hong Kong-headquartered multinational Li & Fung Limited, will be the new master apparel partner for Thomas & Friends. SG Footwear, a division of the SG Companies, has signed on to produce Thomas & Friends footwear, and ABG Accessories will produce Thomas & Friends-themed headwear, rainwear, umbrellas, and cold weather outerwear.

INTERNATIONAL

Spin Master has announced the launch of boys’ action property Redakai, which features new gameplay, Blast3D technology and a new television series. Launched at hobby and specialty stores on June 4, and followed by mass retailers nationwide in August, Redakai takes trading cards to the next level with Blast3D technology. A new “stack to battle” gaming advancement automatically tracks your progress and allows you to see the damaging effects of your attacks.

Rubicon Teams With CBS Consumer Products for Star Trek Resort in Jordan Rubicon Group Holding, a diversified global entertainment organization producing innovative digital animated content and location-based attractions, will design and produce The Red Sea Astrarium (TRSA), a 184-acre themed entertainment resort located in Aqaba, Jordan, which, through a license from CBS Consumer Products, will prominently feature an attraction inspired by the 2009 international hit motion picture, Star Trek. The Star Trek attraction is being creatively developed by Paramount Recreation.

Summer 2011

Licensing News ENTERTAINMENT

Rubie’s Costume Co. Teams Up with KISS for Costumes, Masks, Wigs, and More

BOYS

Mega & Saban Partner for Construction Toys

KISS and Rubie’s Costume Company announced a worldwide licensing deal to recreate the iconic style of KISS with costumes, masks, wigs, and accessories for adults and children. “I’ve always said you may not be able to look like KISS, but you can always feel like KISS. We’ve finally changed that, and I’m jazzed to see all the Starchilds and other KISS members in full uniform this year!” says Paul Stanley of KISS. “With your new KISS costumes, you will release the demon within you. You are the God of Thunder,” says Gene Simmons of KISS.

ENTERTAINMENT

Mega Brands, Inc. announced that it has entered into a multi-year global licensing agreement, excluding Asia, with Saban Brands to develop construction toys based on the all-new kids’ action series Power Rangers Samurai. The Mega Bloks Power Rangers Samurai construction toy sets will match the fun, actionpacked style of the new series airing on Nickelodeon. Launching next spring, the Mega Bloks Power Rangers Samurai construction toy line will engage children of all ages with its popular characters, vehicles, and play sets that offer endless possibilities of building adventures.

TMNT Return to Comics with IDW Publishing IDW Publishing and Nickelodeon have announced that the first Teenage Mutant Ninja Turtles comic series, featuring the beloved “Heroes in a Half-shell,” will premiere in August. The Teenage Mutant Ninja Turtles will be back in action and ready to fight off evil once again, with an impressive creative team led by TMNT co-creator Kevin Eastman. Starting in August, IDW’s Teenage Mutant Ninja Turtles will kick off with a brand new installment of the original series, led by Eastman and co-writer Tom Waltz. Newcomer Dan Duncan will bring the Turtles to life with dynamic interior art, while Sam Kieth and Walter Simonson provide eye-catching covers for issues one and two, respectively. Eastman will also provide layouts for Duncan's art, as well as variant covers.

Summer 2011

Statâ&#x20AC;¢Shot Licensed Product Sales at a Glance FUTURE RANK

TOP LICENSES: 3 MONTH PURCHASE INTENT AMONG KIDS 0-14

TITLE

LICENSOR

SPONGEBOB SQUAREPANTS

NICKELODEON

JUSTIN BIEBER

HANNAH MONTANA

STAR WARS

DORA THE EXPLORER

DISNEY PRINCESS

ICARLY

TOY STORY

DISNEY

TRANSFORMERS

HASBRO

NFL

BRAVADO DISNEY LUCASFILM NICKELODEON DISNEY NICKELODEON

NATIONAL FOOTBALL LEAGUE

The NPD Group / Kids Industry Data Service (KIDS)

TOP LICENSES

FOR

GIRLS

AND

PERCENT OF LICENSED MERCHANDISE PURCHASES FOR KIDS 0-14 SEPTEMBER 2010-MARCH 2011 SECTOR APPAREL/ACCESSORIES ARTS & CRAFTS BABY/INFANT NON-DISPOSABLE BOOKS CONSUMER ELECTRONICS DVDS, BLU-RAYS, VID DWNLD FOOTWEAR GIFT CARDS HALLOWEEN COSTUMES/ACCESS. HEALTH & BEAUTY ITEMS FOR THE HOME MUSIC

TOTAL SALES 11 PERCENT 15 PERCENT 16 PERCENT 29 PERCENT 8 PERCENT 65 PERCENT 14 PERCENT 0 PERCENT 39 PERCENT 12 PERCENT 20 PERCENT 25 PERCENT

The NPD Group / Kids Industry Data Service (KIDS)

BOYS 0-14

S EPTEMBER 2010-M ARCH 2011 GIRLS

RANK 1 2 3 4 5

TITLE DISNEY PRINCESS DORA THE EXPLORER BARBIE DISNEY FAIRIES HANNAH MONTANA

LICENSOR DISNEY NICKELODEON MATTEL DISNEY DISNEY BOYS

1 2 3 4 5

TOY STORY STAR WARS CARS: THE MOVIE NFL SPIDER-MAN

The NPD Group / Kids Industry Data Service (KIDS)

Summer 2011

DISNEY LUCASFILM DISNEY NFL SONY

Disney Princess is the No. 1 license among girls 0-14, according to The NPD Group

LIMA Awards

Hall of Fame

Interview with Leigh Anne Brodsky, LIMA’s Newest Hall of Fame Inductee Nickelodeon’s president of consumer products reflects on a career very much still in progress. By Bryan Joiner

The Licensing Book: Was there a moment you knew you wanted to work in consumer products? Leigh Anne Brodsky: My first job straight out of college, I was working for United Media. The guy who hired me, Mike Georgeopolis, was the vice president of licensing at United Media, part of ScrippsHoward newspapers, and he was a neighbor of mine. I was very active in theater, and my whole life in high school and college was theater. Mike had seen me on stage in shows, and said, “Anyone who gets on stage and does what you do can probably sell,” and he hired me right out of college. The reason that I wanted to work in consumer products was Snoopy. I had grown up loving the books and the products. From that moment, when I had my first interview with Mike and he was telling me what they did, working with creative geniuses like Charles Schulz, it sounded like a fun job; it sounded exciting. I just wanted a job, and I figured I’d figure out what licensing meant when I got there. So that’s where I started. The intersection of the creative and commercial worlds is what has remained exciting to me. The licensing business, the consumer products business, is about an extension of that entertainment experience, but creating a new work in the product itself. It’s something tangible and tactile, and the consumer can extend their experience with these entertainment properties that they love. TLB: How do you combine the creative and commercial worlds without sacrificing either side?

Summer 2011

Brodsky: You have to take a bit of a leap from what’s on the screen and on the TV into what works in a product. This is the way that happens, and I think that Nickelodeon does it better than any other company. We are very consumer-oriented, we are very creator-focused, and those two things have to come together. We wouldn’t put anything on television that we didn’t think was going to be the thing that the consumer wants. We wouldn’t put anything in stores that isn’t what the consumer wants, and it also has to reflect the creative vision of what the property is. That doesn’t mean taking exactly what you see on TV and squishing it into a product. It’s exciting to work with the creators of the different properties and imagine with them this exploration into almost another screen, if you will—another way of picturing and seeing the character and the stories come to life is in products. I’ve always felt that consumer products are a very meaningful way for a brand to connect with a consumer or an audience because it’s something that they have to pay for; it’s something that they seek out and find, it’s not something that just comes to them. That’s how meaningful this property is for them, that they want to experience this property not only on TV or in movies but want to have it as their room décor in a kids’ bedroom, or want it to be their Halloween costume for that Halloween.

TLB: How has licensing changed since you started? LB: When I first started in this business, I had a top 30 retail accounts list. There really were 30 accounts that were critically important

to our businesses. Retail consolidation is the single biggest change that I’ve experienced, and it’s one of the biggest challenges because there are fewer doors to knock on. It doesn’t mean there are fewer storefronts, but there are fewer accounts to call on. I think that you have to do an even better job of positioning the story of how a consumer wants/needs/loves your property in order to get that placement on the shelf.

TLB: What licensing program or product are you most proud of? Brodsky: I’d have to say Dora and SpongeBob, for two very different reasons. For Dora, it’s great to have been part of launching a property and product for a brand that is an iconic girls property that is about teaching kids a little bit of Spanish. She’s an empowered little girl, she’s not a weak little character. All of our products, from day one, reflected those components of her personality, which are strong and empowered, and the idea of a strong Latina heroine as a character. We’ve always done products with what we’ve called the “Dora Difference” in how we’ve been able to take this iconic and important kids TV show, and we’ve been able to bring everything that the kids love about the show to life in products. For SpongeBob, I’ve seen so many properties that have great features, but I’ve never seen a property that has such broad appeal and staying power and universal appeal on a global basis. I’ve started to refer to SpongeBob as a “four quadrant” property, the way in the movie business we talk about four quadrant movies that everyone must go see. SpongeBob is like that from a licensed property perspective. He is as popular with young kids as he is with college kids. Boys and girls love him, and our product line reflects that. TLB: What’s something about you that people don’t know? Brodsky: In addition to acting, I’m also active in pro-social efforts. We were at a Toys “R” Us benefit gala, and we were in an auction situation for a walk-on role for The Music Man on Broadway. I was with my boss at the time and we were at our table at the gala and we were bidding on this walk-on role. We won it, and I got to have a walk-on role with Eric McCormack as The Music Man. I got to have

Summer 2011

my credit in a tip-in card in the program. I was in four scenes, I had a costume, I did make-up and everything. It was like I finally got to Broadway. It was pretty exciting, and it was all tied to something that was from my licensing experience. It was through the industry that this opportunity arose, and it was really fun.

TLB: What is it like to be honored by your peers with the Hall of Fame announcement? Brodsky: It’s overwhelming, and I’m kind of excited that I’m one of the youngest people to be honored. It’s very gratifying. It’s been a business that I’ve held near and dear to me and I’m honored for the recognition. TLB: How are things going for Nick? Brodsky: We’ve been really busy because our portfolio has grown considerably. We continue to have a very, very big and healthy business with our evergreen Dora and SpongeBob, but we’ve started to develop a number of other programs, including Victorious, with a more girl bent to the program. We’re doing a lot of programs around that hit show. We’re also doing UmiZoomis, which is the next big preschool hit with our audience, and we’re coming out with a lot of new product for that. Teenage Mutant Ninja Turtles and Winx Club are superserving boys and girls, and are in great demand. Our portfolio has grown and that’s going to be exciting for us. TLB: What do you value most from your experience in licensing? Brodsky: I think that more and more, we’re seeing that entertainment properties are truly or can be global properties. It has been our experience that in the case of SpongeBob and Dora this is a global phenomenon. The way we’ve been approaching our business on a global basis has been an eye-opener for us and a key to our success. The Nickelodeon brand and these properties have such resonance across the globe that we’ve found it to be great in terms of making better product, because we’re able to pull from the best trends and information and from different parts of the world, and we can apply them to our product. In terms of how we roll out properties, having a global footprint helps to make everything feel better and the scale allows us to make better products.

State of the Industry

CONSOR Corporation

Constancy of Change: There Will Never Be a Yesterday Again by Weston Anson and Jemma Samala CONSOR Corporation

Scenes from a science fiction episode in the 1950s: mom ordering groceries from a computer screen which is then delivered to the home; children viewing how their virtual bodies look in different styles of jeans before deciding which pair to buy; dad flipping through magazines on a small TV-like screen, then purchasing the products advertised, by the touch of his fingertips. An alien way of shopping. What was science fiction not too long ago is now a reality. Those in the business of selling need to learn to keep up with changing trends. If not, their products will become history.

The New Reality at Retail Sellers, both retail and wholesale, need to face the new reality of current consumer shopping habits. In our fast-paced retail environment, consumers are looking for the fastest ways to find the products on which to spend their dollars. Where do they find them? Merchandisers need to find the right answer. Reality of buying: Before looking into how brands must sell their products, you must first look into the changes in consumer buying habits. Shoppers don’t window shop and purchase on a whim very often. The amount of information available at a consumer’s fingertips is overwhelming. Through mobile phones, shoppers can compare prices, features, and consumer reviews. Shoppers can even try on clothing, then email or text the images to friends, who can then help decide what looks best and which item to eventually purchase. Reality of selling: Retailers, wholesalers, licensors, and licensees need to work together to sell the product. As the amount of product inventory is reduced and shelf-life is shortened, calculations of supplies need to be increasingly accurate. Retailers are the brands: One good example of retailers being

Summer 2011

the brand is Macy’s. Macy’s manufactures the brands (INC), buys the brands (Waterford, Kate Spade, Lucky Brand Jeans), and promotes the brands (multi-celebrity commercials and Facebook posts). As more retailers are being bought out, or becoming associated with other brands, the whole distribution line must be coordinated in promoting the products. Be the brand of Macy’s, shop at Macy’s. Household names: How do you get your brands to become household names, like Disney or Nickelodeon? It takes persistence. The Disney Consumer Products Group took in $28.6 billion in 2010 (not including Marvel Entertainment, which earned $5.6 billion), and Nickelodeon earned $5.5 billion. How do they do it? Disney is an easy case study: it saturates the market. Who else can turn a theme park ride like Pirates of the Caribbean into the powerhouse merchandising machine it has become? In recent years, boys dressed up to be Jack Sparrow, yielding plastic swords and wearing fake beaded beards at Halloween. Nickelodeon has mastered the same concepts. It has taken popular children’s shows and created a whole new segment of products. Little kids love Dora the Explorer and her cousin Diego. They coax mom and dad to buy Dora backpacks, clothing, games, and Spanish learning products. And SpongeBob SquarePants has become an icon for boys and many of their dads. No longer do kids know words to nursery rhymes. But if you ask them who lives in a pineapple under the sea, kids will immediately start singing the SpongeBob SquarePants theme song. If you are not one of those mega-brands, co-brand with them. Disney has cruises, resorts, nail polishes (for the little princess in you), and of course lots and lots of toys. They don’t manufacture or manage all their properties. Hook up with a mega-brand where the licensing fees are worth the returns.

Brand promotion: No matter who you are, or what product you have, the key is promotion. Companies don’t necessarily need a large marketing budget, or have to hire celebrities for commercials, but you must stay on top of current trends in advertising. Make sure to promote through social media. Consumers are more likely to listen to a recommendation from a Facebook friend, click on an ad from an email blast, or trust a YouTube video that shows the product being used. Social media sells.

Social Media Sells Anything We have become a society demanding instant gratification, thanks to the accessibility of the Internet and the popularity of Facebook and Twitter. The following social media avenues have become instant methods of brand promotion. “Like”: Go to anyone’s Facebook page and you see the thumbs up symbol and the number of people that like a particular item. It could just be an individual’s post, or it could be the sponsored ads shown on the side. Macy’s does an excellent job of selling on its Facebook page. So far more than 1.8 million people like the Macy’s page. That’s how we knew it was time to shop for Lancôme cosmetics in order to get that cute little tote bag with gift products. Facebook sells, and getting liked is a key ingredient to how retailers can promote to the savvy consumer. Tweet this: Whether or not you prefer to use celebrities in advertising campaigns, they are gaining popularity as endorsers on Twitter. Jersey Shore reality show star Nicole Polizzi, aka Snooki, usually promotes her own line of slippers and jewelry, but when she tweets about other products more than 2 million people will see it. If Ashton Kutcher, who has more than 6.8 million followers, or Charlie Sheen, who has more than 4 million followers, mentions products or places, surely it will have an impact on sales. Product placement: There was a time when viewers of TV shows knew exactly who was sponsoring the show they were watching. Winston cigarettes were known to sponsor Gunsmoke, Proctor & Gamble sponsored I Love Lucy, and General Electric sponsored Leave It to Beaver. Today it’s more subtle. In The Biggest Loser, you will see that Subway is the contestants’ dining venue of choice, that you should use Brita to filter your drinking water, and that Cheerios is a quick and easy healthy breakfast. According to Reuters, we saw Apple products in 30 percent of top U.S. movies in 2010, including Kick Ass, The Other Guys, and Toy Story 3. Blog it: The Internet provides so much information, it can give you a headache. But find one blog, especially one with a local edge, that you can really identify with, and it can add an edge for marketers.

For CONSOR’s office that would be LaJollaMom.com. La Jolla Mom has information on children’s toys to purchase, cupcake shops to visit, and wines to help moms relax. Again, the promotion is subtle, but it’s selling just the same. Companies should pay attention to the local bloggers’ influence. Is there an app for that?: The availability of phones and computers to download applications makes them an especially desirable way to license products. There are a ton of apps to choose from, but consumers are comfortable with familiarity. If there is an app with a wellknown brand affiliation, that brand can capitalize on that comfort. For instance, Angry Birds was popular, but co-branding it with the animated movie Rio in the new Angry Birds Rio app, probably increased the number of viewers willing to go out and pay the $10-plus to see the movie. Many brands also use apps to promote their products by providing an additional service through those apps. Nike has a Training Club app to help burn calories, Weber’s app provides grilling recipes and techniques, and Kodak has one that sends photos directly to your printer. Create an app that will keep customers loyal to your brand. Discount Value: The group mentality is alive and well, and you can see it in the growth of group discount services such as Groupon, LivingSocial, and The Dealist. By targeting large groups of people to buying coupons to restaurants, shops, and entertainment venues, these places are creating their own brand loyalty. Get them in the door with a coupon, provide a good atmosphere and product, and you’ll develop a new returning customer. In today’s economy, everyone wants to save a buck or two, but once there, extra dollars are spent freely.

Branding and Licensing Trends The business of selling is an increasingly fluid method, and keeping up with trends can be difficult to master. Especially when the shelf life of inventory gets smaller and smaller, timing becomes everything. Through our own recent research and case work, CONSOR sees the following trends in branding and licensing. Affinity brands: Products that tie in a consumer’s emotional attachment can be a licensor’s dream. Universities, sports teams, and professional groups all have one thing in common—undying loyalty from those who affiliate themselves with those groups. Sometimes the product doesn’t even matter. It’s the affiliation that is being bought. University alumni will fill their homes with mascot-printed bed sheets, towels, dishes, and cups. If their teams go to a championship game, watch the tailgaters load up with affiliated lawn chairs, coolers, pop-up canopies, and board games—all charged with their university credit card. Find that emotional edge.

Summer 2011

Global licensing: In the increasingly important global atmosphere, brands must target emerging markets to stay competitive. Look to the East—China, India, Philippines—and realize they all look back to the West for consumer inspiration. On streets in those countries you will see people wearing Levi’s jeans, carrying Louis Vuitton bags, and eating at the local KFC. These KFCs also sell rice along with those mashed potatoes, and KFC’s success has been adjusting to those cultural tastes. Mattel’s success in the eastern markets has been in adjusting the shape of their Barbie dolls. Brands need to focus on those global markets and assimilate with those cultural styles. Brand extension: As businesses co-brand and delve into additional product categories, you never know how far brands can extend. Popular TV shows and movies naturally extend to products. The upcoming final episode of the Harry Potter series will no doubt create an influx of Harry Potter products—books, clothing, video games, and toys. Staying on top of your market is not easy, even for those who hold a significant market share. Look at Lego. Founded in 1932, Lego is now owned by a grandchild of the founder. Lego has promoted itself into a global household brand. From building block toys, to books, clothing, videos, and theme parks, Lego is everywhere, and has co-branded with Disney, Harry Potter, and Nickelodeon. Parents endorse Lego products since most consider them to be educational, especially the robotic and Design by Me products. Even Lego’s Bionicle toy line eventually evolved into video games and a movie. Product to entertainment is a new trend in brand extension. Licensors should always be on the lookout for innovative ways to extend the brand. Celebrity endorsements: Paid or unpaid, good or bad, celebrity endorsements are here to stay. We see the continued value of these endorsements with popular celebrities like Catherine Zeta Jones, Julia Roberts, and Michael Jordan. But look carefully at a recent celebrity duo’s wedding, Prince William and Duchess Catherine. Their royal wedding created a number of products for the glowing public. Some products were endorsed by the royal family, such as those sold at Prince Charles’ the Highgrove Shop, but most were unlicensed—since royal-inspired products are required to be in good

Summer 2011

taste. Clothing, shoes, jewelry, and hats worn by the royal couple and those in attendance drew women across the globe to look for similar items. Plus, what will be the ultimate endorsement value given to the couple’s honeymoon location, the island nation of the Seychelles? Who wouldn’t want to vacation in a location known for sandy beaches, clear waters, and secluded hideaways? High-profile celebrities with recent scandals may still provide product appeal for consumers. Bad boy Charlie Sheen may be surviving his recent travails. Tiger Woods didn’t lose too many endorsements either. Charitable co-branding: Associating with a charitable cause can be a positive benefit to your brand. Proctor & Gamble’s products help a number of social causes. The P&G Children’s Safe Drinking Water Program uses PUR water systems to help purify dirty and potentially deadly water into clean drinking water in more than 60 countries. Pampers works with UNICEF to vaccinate women and children against maternal and neonatal tetanus. Plus, P&G is committed to providing disaster relief for such natural tragedies as those that occurred in Haiti, China, and Japan. Additionally, your entire brand can be based on a charity or social movement. Think eco-friendly. Clorox created a whole line of ecofriendly, natural cleaning products called Green Works, which is in alliance with the Sierra Club. Yesterday, once again: Reinventing past favorites is still popular. Who would have thought that an endorsement from 89-year-old Betty White would make the most popular commercial for the Super Bowl? As the Baby Boomer generation ages, the nostalgia factor can’t be discounted, and should be pursued. Those who hold licenses for the Rolling Stones, Happy Days, Woodstock, and even Watergate properties should rev up supplies. We’re looking forward to some tiedyed shirts and long beautiful hair.

What’s Constant: Change Ahhh… yesterday. As much as we yearn for the good old days, life is constantly changing. Changes in our consumer culture will always translate to change in business methods. Knowing that change is constant, and staying flexible with methods to market products, is what will establish a long and fruitful shelf life.

THERETAILMANUFACTURERLICENSORSALESROYALTY

ARTSTATENEGOTATIONSEXTENSION MINIMUMTOYETICOFAPPARELCORPORATEBRAND MAXIMUMINTELLECTUALTHEPROPERTYTWEENS

LEADERCUSTOMERSINDUSTRY Debra Joester, President and CEO, TheJoester Loria Group

Last year you said that pressure on margins and royalties would continue as the cost of raw materials rose, but you also said a “white hot” property has the power to vitalize the entire industry. Do you think a property can overcome difficult economics, and have we seen it yet? The spiraling cost of goods may lead retailers away from private label and back to brands because the margin advantage of sourcing direct will be eroded. We have an unexpected 2011 breakout property in Angry Birds, and the property has demonstrated that viral properties can be successfully licensed.

What type of properties are on the rise, and what trends are leading to this? We believe the reach of viral-basd properties will be converted to retail success, and several viral properties will be the talk of 2012. In 2011, a number of new and existing television properties found new broadcast homes as more networks reached more viewers. We have been watching the growth of Sprout over the past couple of years and, with 55 million-plus homes and a very high level of co-viewing with moms, believe Sprout is extremely well positioned to deliver the next preschool hit.

Summer 2011

2011

Our annual roundup of the best and brightest minds in licensing, with answers from: The Joester Loria Group Sakar International Striker Entertainment Sesame Workshop Wood, Herron & Evans Saban Brands American Greetings Nickelodeon BMO Capital Markets Warner Bros. Hit Entertainment Hasbro CBS Consumer Products Rubie’s Costume Co.

Liza Abrams, VP, Licensing, Sakar International

Russell Binder, President, Striker Entertainment

What types of properties are on the rise, and what trends

What types of properties are on the rise, and what

are leading to this?

trends are leading to this?

I have been noticing two clear trends. First is the live-action

We are seeing digital driving new business. With the mas-

tween TV/movie genre, generally aimed at girls. Our iCarly

sive global success of Angry Birds, we are witnessing how

line of product has been hugely successful at retail, and we

valuable it is to fill up a consumer’s micro gaps in their day.

are optimistic for some of our new licenses.

With more than 200 million minutes a day dedicated to

Second, brands continue to be on the rise. Retailers want

playing Angry Birds, we are finding that few if any other

brands for every facet of product and demographic. It’s great for

types of media can have that kind of immediate and dra-

these brands because it just reinforces their awareness among

matic impact with the benefit of being available at virtually

consumers, no matter what the original brand represented.

any location due to the fact that no one leaves home without their smartphone or other tablet device… and if you do

Where do you uncover your hidden gems? Trade shows?

forget it, you turn right around and go get it.

Google? Cold calls? The answer is EVERYWHERE! And some we woo for years!

How are you engaging computer and tablet-specific spaces like online games and apps?

What is the effect of direct-to-retail licensing deals?

A successful boxed video game in today’s environment is

In the early stages, DTR programs are helpful in maintaining

about 3 million units. Angry Birds’ creators, Rovio Mobile,

focus and building excitement and buzz for a property.

recently announced more than 140 million downloads, and

Over time though, limiting a property’s retail option can

there is no comparison in the kind of reach and access you

backfire. What if the retailer decides not to take in a cate-

can have with a readily adapted app or game on smart-

gory, for whatever reason, that might have great success at

phones and tablets. All this while it has become virtually a

another retailer? I think it’s a double-edged sword, and li-

Herculean task to secure a boxed/retail video game license

censors need to really evaluate how this will impact them

for a major motion picture or TV show.

long-term.

Summer 2011

Maura Regan, Senior VP and GM, Consumer Products, Sesame Workshop

Elie Dekel, President, Saban Brands

Last year, you predicted a comeback in the apparel busi-

What measures are you taking to protect your IP and

ness and growth in electronic toys. How has your prediction

prevent trademark infringement?

panned out, and do you see continued growth there?

Global trademark protection and enforcement has become

While it was a tough year on the economy, it actually cre-

more important than ever. At Saban Brands, we started by

ated great opportunities for licensing. Licensed products

hiring an IP/trademark/copyright expert, Rami Yanni, to

allow the retailer to create excitement and an experience for

lead our in-house legal team. From there, we added a di-

consumers to come in and shop. Sesame Street has seen con-

rector of business & legal affairs and have retained various

tinued growth in both apparel and electronics. With our

outside law firms in different territories worldwide to assist

strategic partnerships with Childrenâ&#x20AC;&#x2122;s Apparel Network and

us in executing a comprehensive IP enforcement program.

Hasbro, we anticipate this year to be just as positive.

We work with those law firms to prosecute and maintain necessary trademark registrations and to challenge third-

How are you investing in social media for your brands?

party registrations that may infringe our trademark rights.

How are you determining ROI?

We also work with local investigators and government au-

As a content provider, weâ&#x20AC;&#x2122;ve always made it our priority to

thorities to protect and enforce our trademark rights via var-

look for new channels of distribution. Whatever media form

ious methods, including filing civil and criminal actions,

our audience is engaged in, we make every effort to be there

conducting raids, and seizure and destruction of infringing

with relevant and fun video, songs, and games and, of

and counterfeit products in the marketplace.

course, apps. At present, social media is largely a marketing How are you investing in social media for your brands?

platform.

How are you determining ROI?

What changes do you see for the industry ahead?

ROI in a financial sense is always appealing, but rarely re-

Itâ&#x20AC;&#x2122;s going to be a very positive year for the industry. How

liable in this space. We look at social media as a medium

could it not be with the new Hasbro Sesame Street line com-

to engage, promote, receive feedback, and connect with

ing out?!

our consumer base.

Summer 2011

Karen McTier, Executive VP, Domestic Licensing and Worldwide Marketing, Warner Bros. Consumer Products

James Kipling, Of Counsel, Wood, Herron & Evans LLP

What measures can companies take to protect their IP

What types of properties are on the rise, and what

and prevent trademark infringement?

trends are leading to this?

In the United States and most major marketing countries, com-

Superhero properties continue to top the list of priorities for

panies that wish to protect trademarks, trade names, and

us and the retail partners we work with. Many of these prop-

logos against infringement should consider registration with

erties have strong track records of success at retail. With

the appropriate agency of the central government. In most

Green Lantern, the next Batman film The Dark Knight Rises,

countries, the party owning such a registration is the legal

and a new Superman film on the horizon, we are support-

owner and can take action against unauthorized users of the

ing an incredibly robust content pipeline.

mark, whether or not the registrant has ever made use of the mark itself. The U.S. is unusual in requiring that a mark actu-

What is the effect of direct-to-retail licensing deals?

ally be “used in commerce” before ownership is confirmed.

A typical DTR (non-exclusive) deal would not limit any prop-

A company wishing to adopt a mark must look beyond

erty exposure or distribution. In most cases, it will actually

existing registrations and have a thorough search performed

help grow the business. The retailer may focus more on the

that extends to trademarks in use before it invests in devel-

products under the DTR because they have more invested in

oping a marketing plan around the desired mark. When a

it from a financial standpoint.

registration in the U.S. has been issued, the registrant has ac-

cess to a variety of enforcement mechanisms. Filing an in-

Take out your crystal ball. What do you see for the in-

fringement suit against an infringer in federal court is one of

dustry ahead?

these, but if the infringing products are being imported, a

With the world of retail getting increasingly more competi-

much less costly and very effective alternative is through

tive, it’s hard to tell. As an entertainment licensor, every day

recordation of the registered mark with the U.S. Customs

we are seeing more and more the importance of having a

Service. The Customs Service has authority to seize shipments

combination of equity, relevance, and pure heavyweight

of infringing goods at the port of entry and hold them for dis-

support behind your properties. The bigger, the better—

position or destruction.

and bring on the content to support it all.

Summer 2011

Gerrick Johnson, Vice President, Equity Research Analyst, Consumer Group BMO Capital Markets What types of properties are on the rise, and what trends are leading to this? The licensing model in the toy business has been turned upside-down. Rather than a toy company licensing a character from a movie or a television show, we see a push to go the other way and have television shows and movies license characters from toy properties. Credit Hasbro and Transformers with this paradigm shift. Insofar as the traditional licensed properties, I see 2011 as a year of classics: Transformers, Cars, Captain America, Thor, Kung Fu Panda, Green Lantern, Pirates of the Caribbean, and Smurfs.

What measures can companies take to protect IP and prevent trademark infringement? Unfortunately, knocking off someone elseâ&#x20AC;&#x2122;s IP in the toy business is a time-honored tradition. The legal remedy seems effective, but is also expensive and time consuming. While the legal process plays out, I think the best thing to do is to be constantly innovating. By staying one step ahead of the competition toy companies can naturally protect their brand.

Take out your crystal ball. What changes do you see for the industry ahead? While I encourage toy companies to extend their brands into the online world, apps, and social media, nothing will ever replace the tactile experience of toys. While the industry will continually evolve, and incorporate the latest technologies, I do not see it ever going away. Lego and Nerf are two of the hottest toy lines out there right now, yet they vie for the attention of older boys who, according to the â&#x20AC;&#x153;experts,â&#x20AC;? should only be playing video games

Pam Westman Executive VP, The Americas, Hit Entertainment

Simon Waters, SVP of Global Brand Licensing and Publishing, Mark Blecher, SVP of Digital Gaming, Hasbro

Take out your crystal ball. What do you see for the in-

How are you engaging computer and tablet-specific

dustry ahead?

spaces like online games and apps?

Licensing will continue to play a key role in consumer prod-

Hasbro has been a major force in digital games across all

ucts and entertainment. As the world continues to change

platforms including PC, console, handheld, online, mobile,

with the latest and greatest technologies, I expect that we will

and tablets. Through our agreement with Electronic Arts,

also see an increase in how technology, online entertainment,

Hasbro’s game brands were offered on the iPad the first

and social media are incorporated and cross over into tra-

day it launched. We currently offer paid, dedicated iPad

ditional licensing programs. With more families investing in

apps for nine of our game brands. We have an additional

tablets, smartphones, and other mobile devices, consumers

10 offerings on iPhone, each of which is also playable on

are looking for an interactive brand experience that can be

the iPad. In online gaming, we have dozens of games avail-

easily accessed at their fingertips. Every brand will now need

able at Pogo.com, Hubworld.com, and Hasbro.com. We

an app and a presence in the social media space so that they

are also developing MMO games for Transformers in both

can engage consumers at a more “personal” level than be-

western markets and China. Needless to say, Hasbro has

fore. Licensors are also looking for bigger distribution plat-

been an active player in digital content for years.

forms to drive a larger than life awareness for their brands, like theatrical movies, television networks, and an increased

Take out your crystal ball. What significant changes do

presence in the attractions business.

you see for the industry ahead? The industry must actively find ways to engage with the con-

What type of properties are on the rise, and what trends

sumer in the virtual space, and connect that to what they

are leading to this?

expect to see and find in store-based retail. Companies like

Evergreen properties continue to perform strongly at retail. We

Apple have said they are planning on significant techno-

see evidence of this as Thomas & Friends was ranked for the

logical advances in retailing through their stores, and we’re

10th consecutive year as the No. 1 license in the preschool toys

very excited to see what they do; it could have broad ram-

category in the United States, according to The NPD Group.

ifications for how people will shop in the future.

Summer 2011

Leigh Anne Brodsky, President, Nickelodeon Consumer Products What is the effect of direct-to-retail licensing deals? Direct-to-retail deals can limit overall sales volume potential. Therefore, if possible, itâ&#x20AC;&#x2122;s best to combine DTRs and traditional licensing to present more product offerings, a full range of price points, and leverage the category expertise of licensees working with our branded products. This helps to ensure we have the most innovative products on the shelves, and retailers also have more skin in the game so they are even more invested in the long-term success of our properties.

Gabrielle Oliff, Marketing Director, American Greetings Properties

How are you engaging computer and tablet-specific spaces like online games and apps? Our strategy at American Greetings is to refresh online gaming content on a regular basis in order to keep the consumer engaged as repeat visitors. The games that we release are designed for repeated play and for multiple ages and abilities. For apps, our strategy has been to tie them to major product launches and DVD releases that support tentpole events. In that manner, we are reaching consumers through multiple brand touchpoints.

Liz Kalodner, EVP and GM, CBS Consumer Products

Howard Beige, Executive Vice President, Rubie’s Costume Co.

Last year you talked about computer- and tablet-based

What types of properties are on the rise, and what

commerce as a growth area. As a company, how have

trends are leading to this?

you engaged those spaces?

We think superheroes are on the rise with all the comic book

We’re working with our e-commerce partners on a variety of

films being recreated, such as Green Lantern, Green Hor-

initiatives that reach the consumer wherever he or she is

net, Wonder Woman, etc.

watching TV, perusing eBay, visiting Cafe Press, shopping via mobile, chatting with friends, or playing games on Facebook.

What is the secret to competing against generic, non-li-

We no longer wait for the consumer to come to us.

censed competition? Making a quality licensed costume that is similarly priced to

What types of properties are on the rise, and what trends

the non-licensed costume.

are leading to this? There’s no denying that social media and electronic applications

Take out your crystal ball. What significant changes do

have dramatically changed the property roster. We used to think

you see for the industry ahead?

of movies and TV shows as the defining source of new content;

Better quality costumes, accessories, and décor as the econ-

today, though, a robust merchandise program for Angry Birds

omy improves.

shows us the power of a mobile game. I expect we’re going to see more and more product come from those new sources.

Take out your crystal ball. What significant changes do you see for the industry ahead? I continue to believe in the importance and growth of e-commerce for licensed product as well as the continuation of the trend toward all things online—whether it be games and gaming, customization, or even licensed communication.

Summer 2011

THERETAILMANU

STATEDEAL OFMINIMUMMAXI THEPUBLISHINS

INDUSTRY

A Winning Combination How the Beanstalk Group and Nancy Bailey & Associates got here: Their origins, their biggest hits, and a peek at what the future holds by Bryan Joiner hirty years ago, corporate brand licensing was just an idea. Today, it’s a multi-billion dollar business and it grew because of people like Nancy Bailey and Michael Stone. In the 1980s, licensing was centered on the entertainment industry and the hot properties were Strawberry Shortcake and the Smurfs. Nancy Bailey was left holding a Whopper. Not that she was complaining. At the brand new licensing agency that bore her name, Nancy Bailey & Associates (NBA), she added other food clients, including Pizza Hut, Baskin-Robbins, and 7-Up, and the rest is licensing history. Today we don’t think it’s strange to see a Burger King T-shirt or Burger King food products at retail, but at one point it was revolutionary. “In those days, you couldn’t give corporate brands away,” says Bailey. “I made a strategic decision that I only wanted to represent corporate brands and I have stuck with that strategy for almost 30 years. It turned out to be the right thing to do.”

The Vicks Vaporizer by Kaz, Inc. was an immediate smash success in corporate branding for NBA

Perhaps the most obvious sign that Bailey was on the right track was back in 1994 when Procter & Gamble (P&G) hired NBA to represent two major consumer brands, Vicks and Hawaiian Punch, in the United States. This work led to P&G hiring NBA six years later to handle its domestic licensing op-

Crayola-branded products from MZB Personal Care

eration. In 2003, NBA was awarded P&G’s firstever External Business Partner of the Year award. The now legendary Vicks licensing program signaled a change in corporate licensing. Prior to the Vicks Vaporizer, corporate licensing had been largely promotional. The Vicks Vaporizer was NBA’s first “true” licensed brand extension, and an important step toward licensing being recognized as a powerful marketing tool. Within the first six months on the market, it became the No. 1 selling product in its category and increased sales in the category by 25 percent. Nancy Bailey’s key role in the development of the licensing business is duly noted: in 2008, she was inducted into the LIMA Hall of Fame, the only inductee from the corporate segment. NBA’s client roster includes the following bluechip brands: P&G’s Mr. Clean, Energizer, Coppertone, Crayola, Eveready, Chiquita, Fresh Express, Pennzoil, and Travelocity, among others. ••• Michael Stone didn’t go to business school. He went to Coca-Cola University. With The Coca-Cola Company and HarleyDavidson as early clients, Stone started The Beanstalk Group in 1992 together with Seth Siegel following their success at licensing agency, Hamilton Projects. At Hamilton, Stone helped Coca-Cola develop their brand licensing program around the

world. The Coca-Cola Company understood the power of licensing as a marketing/communications tool very early and they were sophisticated about how they built their worldwide program from those early days. He hasn’t forgotten a single lesson he learned there. “They were my teacher, and they were ahead of the curve. CocaCola had been in licensing since the late ‘70s. I traveled all over the world with them to grow the program in Europe and Asia as well as working with them in North America. It was a great education. The lessons I learned then are still best practices today,” says Stone. Those practices have stewarded Beanstalk through two decades of growth, to its current place as a clear leader in the global corporate licensing arena. Beanstalk has offices in New York, London, Los Angeles, Hong Kong (and, with the addition of NBA, Atlanta and Miami). The various offices manage their own local clients and work collaboratively on Beanstalk’s many global programs across North America, Europe and the newly developing Asian market. One of these global clients is Stanley Black & Decker. Stanley, the leader in hand tools, had been a Beanstalk client for over 13 years and had already established a highly successful licensing program with Beanstalk’s assistance when they merged with Black & Decker. Beanstalk now works with all

three brands (including DEWALT) across their relevant markets. Additionally, since 2008, Beanstalk has also been handling several brands, worldwide, for Procter & Gamble. The company has been so important to both Beanstalk and NBA that Stone says, only a quarter-joking, that he asked P&G for its “blessing” prior to the merger. (As it streamlined P&G’s own licensing operation, the blessing was happily given.) While Beanstalk initially focused on corporate brands, it is remarkable that one of its greatest triumphs was with an entertainment brand. When Mary-Kate and Ashley Olsen were on the brink of superstardom, their manager came to Stone and said, explicitly, that he did not want the girls to be in traditional entertainment licensing -- he wanted to build a fashion brand. His office had been flooded with calls from mothers who wanted to buy the clothes the twins wore in their top-selling direct-to-video series. The Olsens’ company, Dualstar Entertainment, was set to create all the designs for the apparel, and they needed contractors (also known as “licensees”) to create the clothes. Beanstalk took the opportunity to Walmart in December 1999 and it became one of licensing’s

HGTV-branded paints and painting supplies from Sherwin-Williams

all-time, worldwide, success stories over the next decade. Recognizing the surge in brand extension licensing among celebrities and entertainment experts over the past few years, Beanstalk was approached by and signed on several additional celebrity clients, such as Salma Hayek, who will be launching a major health and beauty program at CVS/pharmacy this summer. Further, Beanstalk opened its Los Angeles office in early 2010 to better service the Hollywood community. The office provides integrated personal management services ranging from career stewardship to licensing program development and new business ventures and works with Beanstalk celebrity clients such as Paris Hilton, Christopher Lowell and David Tutera. Another growing area of licensing which Beanstalk has recently entered is the media space, with Scripps Networks’ HGTV and DIY Network. The licensing program, which kicked off just two years ago, is in market with paint and painting supplies by Sherwin-Williams, hard and soft flooring, and bedding. In 2012, another eight categories will launch, helping to achieve the licensing goal of becoming the No. 1 go-to brand providing styles and smart solutions for all your home and garden needs. Some of Beanstalk’s additional clients include leading brands such as Jaguar, Land Rover, the U.S. Army, Airheads, Rosa Mexicano, Jaeger and Aquascutum. Beanstalk has also brought to market another innovative service offering with its launch of TransAct™ earlier this year. TransAct™ is a stateof-the-art licensing program administration service, which offers integrated technologies and services across legal, contract administration, royalty management, product approvals trafficking, financial reporting, and auditing. Beanstalk provides these services to its clients as part of a representation relationship but also offers this service à la carte to companies that prefer to manage their own programs in-house. But it’s not just great licensing that keeps Beanstalk a leader in the field, it’s also the passion Stone has for creating a positive work environment. “We work hard at the culture of the company,” Stone says. “We have training programs, education programs, and fun things for employees to do and ways for them to bond with one another.” Licensing Show is just one of those ex-

The Beanstalk Group helped MaryKate and Ashley become a global tween fashion and lifestyle brand

amples; this year over 30 Beanstalk employees from around the world will come together to do some great licensing, reconnect with each other and industry peers, and have some fun. Beanstalk also believes in giving back. The Beanstalk Hands On program and Beanstalk Charities not only provide financial support for select charities, but give employees paid time off to participate in charitable activities of their own choosing, as well as activities organized by the agency to help populations in need. Omnicom Group, a leading global marketing and corporate communications company, aware of the strong growth in the licensing industry, had been a long-time admirer of Beanstalk and its success and standing in the industry. So in 2005, Omnicom acquired Beanstalk—the first licensing company it brought aboard its massive marketing/communications holding company ship. Earlier this year Omnicom increased its presence in the licensing industry by acquiring Nancy Bailey & Associates (with encouragement by both Stone and Bailey) and merging it into Beanstalk, creating a dominant new force in licensing. All would agree, the future looks bright. Stone calls Beanstalk, lovingly, an “oddball” in the Omnicom network, even as he exploits its advantages. “It’s a very nurturing environment with a lot of collaboration between agencies, and the combination of NBA, Beanstalk, and Omnicom is almost like one plus one plus one equals six. It’s an exciting time for two old licensing pros like Nancy and me, and it’s exciting to be on this new journey together. Stay tuned—we have some surprises up our sleeves!”

Taking Brands to New Heights n January 11, the news went out: Omnicom and Beanstalk had acquired Nancy Bailey & Associates. Here’s how it came about, and what the future holds for the united agencies. A merger is about culture. You can’t have a successful business merger if the cultures of the two companies are not aligned. When Beanstalk was looking to expand through acquisition, Nancy

Mr. Clean cleaning tools and accessories from Butler Home Products

Bailey & Associates (NBA) was the obvious choice. “I’ve known Nancy for 25 years. We’ve always been friendly competitors. She’s in corporate brand licensing, and has great experience in the food arena. All the signposts were pointed in the right direction,” says Michael Stone, president and CEO of Beanstalk. With the companies working together under the Beanstalk name, it allows NBA to license globally and allows Beanstalk to work expansively with Procter & Gamble on its worldwide licensing

business, which is now consolidated and managed by one P&G Global Licensing Team under the Beanstalk name. The merger is truly game changing for both companies and for the licensing industry as a whole. For Beanstalk and NBA, it blends talent, capabilities, best practices, proven licensing management infrastructures, resources and a client roster of multiple Fortune 100 companies, creating the most powerful licensing agency in the world. “We work on an account team basis, and there’s no dividing line. We’re utilizing the best people we have, whether they are at Beanstalk or NBA, for an account,” says Stone. The company has weekly meetings to discuss new business prospects, and is integrating each other’s strategies in their pitches. The unified Beanstalk recently won McCormick’s Old Bay Seasoning account; both Beanstalk and NBA had pitched McCormick before the merger, and were McCormick’s top two choices. A “blended” team of Beanstalk and NBA employees now manages the business. “We pride ourselves on our long-term relationships with clients and licensees,” says Bailey, now a vice chairwoman of Beanstalk. “For example, Pennzoil has been a valued client for over 13 years, and we have several licensees who have been working with us for 10 years or more. Nothing has changed as far as

Stanley-branded LED spotlight from Baccus Global

NBA is concerned, other than those added resources. It’s a wonderful, seamless marriage.” To get NBA employees up to speed on Beanstalk’s culture, the entire NBA staff came to New York for a working and getting-to-know-you session. It was the moment that two extremely organized companies became one, under the Beanstalk name. About that name: When Michael Stone and Seth Siegel started their licensing agency, they couldn’t agree on what to call it, and they hated each other’s ideas until Siegel came into the office and told Stone that his wife had read “Jack and the Beanstalk” to his child the night before. Would “The Beanstalk Group” work? It made sense. Plant a seed and it will grow. Go for the golden egg. It’s the story of both Beanstalk and NBA—and now, a new chapter.

Beanstalk worked with client Salma Hayek to develop NUANCE, a collection of beauty products launching at CVS/pharmacy this summer

In Their Own Words Nancy Bailey

Michael Stone

When was the moment you realized you wanted to start your own agency? We started the licensing program at Burger King, and we were doing some Whopper merchandise, and people knew and liked the brand and the product. Burger King was going to give the licensing program to an outside sales promotion agency at the time, and I said I wanted to start my own company, and I’d like to have Burger King as my first client.

When was the moment you realized you wanted to start your own agency? I was having lunch on a regular basis with another lawyer named Seth Siegel who was as dissatisfied as I was practicing law. We decided we would try our hand at the licensing business. We started working for CocaCola and Harley-Davidson and stumbled our way into corporate licensing.

What’s the biggest challenge you’ve faced since you’ve been in business? The 2009 recession. Everything just dried up. Clients and licensees alike were nervous about committing to new business in an uncertain economy. What’s the oddest, quirkiest, or just plain worst deal you’ve been a part of? Several years ago, we were working on windshield wipers. They tested these wipers for over 600 washings, and then the licensee decided to make one tiny little change in the production at the last minute, and that tiny little change really affected the performance. Who are some of your newest clients/brands that you are excited about for the future? We expect to have several Energizer licensed products launching in 2011. New food brand clients like Chiquita, Fresh Express and Old Bay all have great potential. We’re excited to continue working with our long-term client, Crayola on many new, unique ideas. What’s something about Michael that people might not know? I didn’t realize Michael is the history buff that he is. He is a history fanatic. He likes to go on archeological and historical field trips.

What’s the biggest challenge you’ve faced since you’ve been in business? When we were privately owned, it was challenging to keep up with our own growth -- financing a company and allocating increasing resources to an agency to continue its expansion. What’s the oddest, quirkiest, or just plain worst deal you’ve been a part of? During the Mondale/Reagan campaign, Wendy’s was a client. During a debate, Walter Mondale said to Gary Hart, “Where’s the Beef?” The next day at Hamilton Projects, our former agency, we must have had 100 phone calls with companies wanting a “Where’s the Beef?” license. Who are some of your newest clients/brands that you are excited about for the future? One of our newest clients, debuting at Licensing Show is the wildly popular series of mobile apps available under the Talking Friends brand. In only 9 months, their apps have been downloaded over 100 million times by consumers around the world. Everyone at Beanstalk has downloaded Talking Tom Cat and Talking Ben the Dog; people just can’t get enough, and even more amazing, Talking Friends’ fans range from age two to 92! We are developing a comprehensive global licensing program for the brand, spanning multiple categories and utilizing the most innovative technologies across toys, gaming and other areas. What’s something about Nancy that people might not know? Nancy is an absolute road warrior. I get emails from her from airports all over the place. She’s missing flights, flights are delayed, she’s getting home at 3 a.m. Also, Nancy loves to host elaborate dinner parties and serve her famous Lebanese cuisine.

Licensing Show 2011

Character & Entertainment

Go Go Power Rangers! Saban’s Deals for Rangers, Paul Frank The cast of Power Rangers Samurai, the latest incarnation of the Power Rangers franchise, will make their first appearance at this year’s Comic-Con International, taking place July 21-24. All five of the Rangers—plus the newest addition to the cast, the Gold Ranger—will take part in a question-and-answer session, which will be moderated by actor Paul Schrier, who has portrayed the character Farkas “Bulk” Bulkmeier since the first Mighty Morphin Power Rangers series debuted in 1993. Following its February launch in the U.S., Power Rangers Samurai has been licensed for television broadcast in territories around the world, including Brazil’s Grupo Banderiantes de Comunicação, Mexico’s leading terrestrial broadcaster, Grupo Televisa, France’s Canal J and Gulli, and Canada’s YTV and Teletoon. In addition, through a multi-territory agreement with Nickelodeon, the series will be seen in key European markets including Germany, the Benelux, the UK, and Ireland; throughout Latin America; and in Australia and New Zealand. An allnew Power Rangers Samurai Origins special will air on Nickelodeon in September,

Summer 2011

showing the never-before-seen story of how the newest generation of Power Rangers came together. Saban Brands is launching the Paul Frank “Academy of Awesome Mobile Tour 2011” this June, a national tour with more than 50 stops, featuring a newly designed Winnebago, where fans of all ages will have a chance to engage in interactive experiences with Julius and other characters from the brand. The mobile tour will include performances from local bands, interactive contests, field trip stops to American landmarks, as well as detours to entertainment venues, music festivals, beaches, and parks across the nation. Saban Brands will start preproduction on a Christmas special that will debut in December 2012, featuring Julius and other characters from the Paul Frank brand. Saban Brands’ producers for this project include Mike Reiss, executive producer of The Simpsons and writer of Ice Age: Dawn

of the Dinosaurs and the upcoming Ice Age: Continental Drift. Husband and wife creative team Erik Wiese and Cynthia True will work directly with Paul Frank designers Parker Jacobs and Ben Soto to enliven Julius and friends. Wiese was a lead director for SpongeBob SquarePants, which he wrote with his wife. The pair served as cocreators of Amy Poehler’s The Mighty B on Nickelodeon. Julius the Monkey will debut as a 42-foot tall, 46-foot long, and 34-foot wide helium balloon in this year’s 85th Annual Macy’s Thanksgiving Day Parade. Saban’s Samurai Power Rangers will also appear for their second parade appearance. Saban Brands announced that Paul Frank and Robert August, surfboard manufacturer, have partnered to create 30 limited-edition surfboards that will be made available for charitable fundraisers and as prizes in a promotional contest hosted by Paul Frank this summer.

Licensing Show 2011

Character & Entertainment

Holy Licenses, Batman! Superheroes Lead Warner Bros. Lineup Slated for a summer 2012 release, the feature film The Dark Knight Rises leads Warner Bros. Consumer Products’ lineup. As Warner Bros. builds on DC Comics’ roster and a myriad of licensing programs to support the properties, Batman fans will be thrilled with Batman Live—an actionpacked live stage show that will tour arenas around the world. WBCP, DC Entertainment, and Nick Grace of Water Lane Productions Ltd., have teamed up to bring the world of Batman to life in this live stage show for audiences of all ages.

Green Lantern , another standout from the DC roster, hits theaters June 17, as master toy licensee Mattel and other licensees worldwide support the brand. The new CG series Green Lantern: The Animated Series will be part of Cartoon Network’s upcoming multiplatform, branded block of original programming and exclusive content called DC Nation , featuring the DC Comics library of legendary character properties, debuting next year. WBCP is

supporting another cornerstone of its portfolio, Looney Tunes, with an allnew animated series, The Looney Tunes Show. WBCP has also re-imagined the 1980s action classic ThunderCats into a 21st century animated television series airing this year. Scooby-Doo and Hanna-Barbera continue to remain core properties, and Harry Potter continues to be a perennial franchise with the finale Harry Potter and the Deathly Hallows: Part 2 in theaters July 15, along with The Wizarding World of Harry Potter at Universal Orlando Resort and WBCP’s partnership with Global Experience Specialists, Inc., which brings fans the experiential internationally touring Harry Potter: The Exhibition.

Mind Candy’s Moshi Monsters Invade Vegas Licensing Show Mind Candy is hosting a Moshi Monsters presentation at Licensing Show in Vegas, unveiling the secrets behind the brand’s success and future plans. The event is open to partners, potential licensees, and competitors alike. “We're really excited to be exhibiting at the Licensing Expo,” says Michael Acton Smith, CEO of Mind Candy. “With over 2 million new registrations each month, Moshi’s popularity is soaring, and we're looking to expand our licensing program within the UK and the U.S. to meet growing demand. With a rapidly expanding user base, a movie deal in the works, and the recent announcement of Moshi TV, licensing opportunities couldn’t be more exciting.” Moshi Monsters is leading the way for

Summer 2011

web-based childrenʼs entertainment brands with its successful foray into physical products. The Moshi Monsters’ toy range from Vivid hit shelves in the UK in January and proved immensely popular, with retailers rushing to make reorders as stock quickly sold through. The new monthly Moshi Magazine (produced inhouse) and book ranges from Penguin have proved equally successful as has other Moshi Monsters products currently out at retail, including Moshi Bandz, membership

cards, and gift packs (produced in- house); trading cards (Topps); Top Trumps (Winning Moves); calendars (Danilo); and posters (GB Eye). Growing Moshi’s presence within the U.S. market is a major focus for Mind Candy this year. Spin Master is on board as U.S. toy distributor and unveiled the Moshi Monsters toy range at the recent New York Toy Fair. Scholastic is on board for publishing and will launch Moshi books in the U.S. imminently. Further categories will follow in the coming months.

Licensing Show 2011

Character & Entertainment

Disney Returns to Pooh Corner, Cars, and Fairies Franchises At Licensing Show, Disney Consumer Products will focus on initiatives driving growth for classic evergreen franchises, event films, and emerging opportunities with Disney Channel and Disney Junior networks into 2012 and beyond. As the world’s largest licensor, DCP continues to set the global standard in entertainment and character licensing by positioning itself as a true lifestyle consumer products brand while remaining committed to product innovation, creativity, and delivering high-quality, highvalue product at retail tiers around the world. The sequel Disney•Pixar’s Cars 2 hits theaters June 24 and will bring back the popular duo of Lightning McQueen and Mater plus a whole new group of fun and lovable characters and story lines. DCP has developed a program that will propel the Disney•Pixar Cars franchise into the largest licensed merchandise program of the year. In less than five years since the film’s release in 2006, the Cars franchise has generated global retail sales of more than $8 billion, making it among Disney’s top franchises and quickly establishing itself as a true classic. Beyond the all-new merchandise assortment releasing with the film, DCP will continue to support the Cars franchise with new content across media platforms and via all-new theme park attractions and new product lines to carry it through 2013 and beyond.

Summer 2011

In the girls’ category, Disney Princess and Disney Fairies continue to be favorites. Starting this summer, “The Story Begins With You” campaign will kick off a series of entertainment content and promotions that will place the Disney Princess franchise center stage and will deliver continual reach and frequency. In the fall, Disney Fairies fans will enjoy an all-new TV special on Disney Channel with Disney Fairies and the Pixie Hollow Games as the franchise continues its retail success. From Phineas and Ferb to Shake It Up, Disney Channel-inspired properties will introduce new product line assortments at retail leading into 2012. Additionally, with the January 2012 launch of Disney Junior, Disney’s first 24-hour cable channel focused on preschool programming, DCP is currently developing licensing programs to launch merchandise in conjunction with the new series in fall 2012. Winnie the Pooh is among DCP’s largest franchise and has massive global appeal. The franchises will be driven at retail this year through a company-wide effort that will bring new focus and take Pooh back to its roots. With the release of the Winnie the Pooh film in July, an updated merchandise program, and a successful digital book application, the Winnie the Pooh franchise is poised to offer incremental licensing opportunities through the DVD window and new programming on Disney Junior. Similarly, the Mickey Mouse franchise will thrive from added focus through Disney Junior programming, which will multiply the reach and frequency of this beloved classic character and serve up new licensing opportunities for Mickey and friends.

Licensing Show 2011

Character & Entertainment

Paradox Features Conan, The Expendables 2, and Torchwood Paradox Entertainment will present an array of film and television properties at Licensing Show. The most legendary barbarian of all time is back in action this summer. Conan the Barbarian hits theaters in August. New licensees for the classic or new film include Trends (posters), Chillingo (iPhone game), Mondo Tees (poster), and Random House (movie tie-in book). Starz Entertainment named Paradox Entertainment as the U.S. licensing agent for its original series Camelot , a 10episode epic drama that redefines the classic medieval tale of King Arthur. The next season of Starz’s Spartacus: Gods of the Arena, the spectacular prequel to Spartacus: Blood and Sand, will premiere in January. Licensees include

Titan Publishing (novels), Museum Replicas (prop/costume replicas), Rittenhouse (trading cards), and Smiffy’s (costumes). The Expendables 2 , the sequel to last year’s blockbuster hit, will arrive in theaters in August 2012. Licensees to this popular franchise include Hot Toys (collectible figures), United Cutlery (weaponry), Mad Engine (apparel), and Dynamic Forces (comics). Paradox will also debut Torchwood from the BBC. Torchwood: Miracle Day, the fourth season of this acclaimed BBC series, premieres July 8 on Starz.

Hit Entertainment Races to Las Vegas with Thomas & Friends At Licensing Show, Hit Entertainment will focus on Thomas & Friends, Angelina Ballerina, Barney, Bob the Builder, Fireman Sam, and Rainbow Magic. Hit also represents Aardman Entertainment’s Shaun the Sheep and Timmy Time, and Chapman Entertainment’s Roary the Racing Car. New to Hit’s portfolio is preschool sensation Mike the Knight , which will debut on TV in Canada, France, and the UK this fall and already has 21 licensees signed up. A CG-animated, feature-length Thomas & Friends film, Day of the Diesels, will be released on DVD this fall. To support this feature event, Thomas & Friends licensees worldwide, including Fisher-Price, Random House, Egmont, Mega Bloks, and

Summer 2011

Learning Curve, will create more than 75 tie-in products, including books, games, engines, play sets, apparel, bedding, and accessories based on Day of the Diesels. Related mobile and tablet applications are scheduled for this year, as well as ebooks launching from Random House. The Angelina Ballerina brand expands this year with games and puzzles from I Can Do That! Games. In the UK, Hit Entertainment and Mattel have teamed up with retailer John Lewis for the launch of the new Angelina Ballerina toy line, which complements the fresh CGI programming, and luxury jewelry designer Molly Brown will launch the first Angelina Ballerina range. Angelina Ballerina launched a new story-inspired app globally this spring.

Licensing Show 2011

Character & Entertainment

Classic Media Gears Up for Where’s Waldo’s 25th Anniversary Classic Media will present some of the world’s most popular brands at Licensing Show in Las Vegas, including Where’s Waldo?/Where’s Wally?, Voltron, Postman Pat, and Lassie; seasonal favorites like Santa Claus Is Comin’ to Town and Casper the Friendly Ghost; and the new global preschool brand Tinga Tinga Tales. Where's Waldo?/Where's Wally? continues to build momentum around the world across publishing, mobile, apparel, stationery, and other key categories, as Classic Media and its partners gear up for Where’s Waldo? A Fantastic Journey, the brand’s 25th anniversary in 2012. Postman Pat celebrates its 30th Anniversary this year with a major broadcast commitment from the BBC, renewing its deal for a further five years, through 2015. Master toy partner Character Options continues to build on its successful toy range of vehicles and play sets. In addition, multiple leading consumer products partners in the UK have renewed their licenses, including VMC (accessories and dressup), TV Mania UK (apparel), Smiffy’s (dress-up), Amscan (party wear), and Gemma (greetings cards). Tinga Tinga Tales, a new animated preschool series, made its broadcast debut in the UK on CBeebies in February 2010 and is currently rolling out to key territories worldwide, including the U.S., where it premiered with the launch of Disney Junior, earlier this year. The consumer products program has begun rolling out in the UK across more than a dozen leading categories, including toys (Bandai as global master toy partner), publishing (Penguin Group as global master publishing partner), apparel, and games. Top consumer products partners are lining up for the launch of Tinga Tinga Tales in the U.S., including Ravensburger (puzzles), Pressman Toy Corporation (games), University Games (Colorforms activity products), and a line of DVDs, which will join Bandai and Grosset & Dunlap (a division of Penguin Group). Voltron, the 1980s hit TV series and pop culture icon, will relaunch as the animated series Voltron Force, debuting in the U.S. on

Summer 2011

Nicktoons and on other key broadcasters worldwide this month. The premiere of Voltron Force will be the first original franchise-related content in 10 years. A dream team of consumer products partners, led by Mattel and THQ, are on board to introduce Voltron to the next generation. Mattel will develop toy lines based on classic Voltron and new Voltron Force, which are scheduled to launch this year and in 2012, respectively. THQ’s first game is scheduled for release this fall. Joining these global partners for the U.S. launch are The Bentex Group, Inc., via its Extreme Concepts division (T-shirts/tops) and its Dreamwave division (swimwear/sleepwear), Rubie’s Costume Company (costumes), VIZ Media (kid’s graphic novels for Voltron Force), and Dynamic Forces (new comic books and graphic novels for classic Voltron). In addition, Classic Media will present the classic animated characters Mr. Peabody and Sherman, which DreamWorks Animation has announced it will bring to the big screen, with Robert Downey Jr. slated to voice the iconic character, Mr. Peabody, in 2014. Also, Classic Media is signing partners for the consumer products program for the popular 1980s boys and girls action brands He-Man, Masters of the Universe, and She-Ra.

Licensing Show 2011

Character & Entertainment

Stupid Factory and David & Goliath Roll Into Las Vegas The team best known for the Boys Are Stupid property of books and graphics, as well as the David & Goliath apparel brand, are taking their antics into new mediums by introducing their newest foray into the world of creative content with Stupid Factory Studios. Promising to bring a new level of biting sarcasm and irreverent humor to the world of character properties, Stupid Factory Studios will be introduced to the world for the first time at Licensing Show. The original Stupid Factory was the brainchild of artist and president Todd Goldman and was launched in 2000 as part of the David & Goliath T-shirt brand. Most of the original graphics and characters developed by the David & Goliath/Stupid Factory creative team have existed in the licensing world, simply by demand ever since. Many Stupid Factory characters have already sold in every major retailer in the world from Barneys to Walmart, under different labels and titles that only industry insiders realize are actually from this group. When Goldman and his creative director and executive VP of David & Goliath, Billy Blu Campisciano, began discussions about expanding their creative content

beyond apparel, the idea of Stupid Factory Studios was born. With a portfolio of literally hundreds of published original characters, graphics, stories, and content, Stupid Factory Studios is launching with a foundation of properties that already represents a body of published works supporting these claims—not to mention a wholesale business and small chain of Stupid Factory stores around the world that showcase its works. Stupid Factory Studios already has a number of animation projects optioned with major studios and is in negotiation with several others to be produced in the next year. Lionsgate recently launched Trailer Trash , an original series created from a concept by Goldman as collaboration with Stupid Factory Studios. Twenty-four episodes aired on Hulu starting in February. Additionally an original character property called Goodbye Kitty is in works as an animated series after the property launched as a test in Europe and proved extremely successful. Most recently, the original Bear in Under wear series of books is rumored to possibly turn into an animated series with a starstudded cast of voices.

Skechers USA Teams with Street Flyers LLC for Sporting Goods Skechers USA, Inc. announced that it has signed a licensing agreement with Street Flyers, LLC to produce sporting goods and safety gear collections for children and young adults. Both are planned to launch in toy and mass market retailers throughout the U.S. and Canada next spring. Under the agreement, Street Flyers will design, produce, and distribute Skechers bicycles, skateboards, scooters, skates, and safety gear. The children’s collection will incorporate designs and images from Skechers’ Zevo-3 animated television series and Skechers Kids characters, which are well known globally due to extensive television advertising and marketing campaigns. Each character represents a uniquely branded Skechers Kids footwear collection, including Twinkle Toes by Skechers, Sporty Shorty by Skechers, HyDee HyTop by Skechers, The Incredible Elastika Bungees, Punkie Rose by Skechers, and Bella Ballerina by Skechers for girls; and Z-Strap, Kewl Breeze, Hot Lights by Skechers and Luminators by Skechers for boys. In addition, Skechers footwear branding will be utilized for the young adult collections. In addition to Street Flyers, Skechers has partnered with numerous licensees to produce a wide range of products including children’s apparel, bags, sunglasses, legwear, medical scrubs, and leather accessories.

Summer 2011

Licensing Show 2011

Character & Entertainment

Sony’s Slate Includes The Smurfs, Men in Black 3, Spider-Man The Smurfs make their first 3-D trip to the big screen in Columbia Pictures/Sony Pictures Animation’s hybrid live-action and animated family comedy, The Smurfs. When the evil wizard Gargamel chases the Smurfs out of their village, they’re forced through a portal, out of their world and into ours, landing in the middle of New York’s Central Park. Just three apples high and stuck in the Big Apple, the Smurfs must find a way to get back to their village before Gargamel tracks them down. The Pirates! A Band of Misfits tells the story of the luxuriantly bearded Pirate Captain—a boundlessly enthusiastic, if somewhat less-than-successful, terror of the High Seas. He is seemingly blind to the impossible odds stacked against him, and has only ever had one dream: to beat his bitter rivals Black Bellamy and Cutlass Liz to win the coveted Pirate of the Year Award. With his ragtag crew in tow, he'll go on a quest from the exotic shores of Blood Island to the foggy streets of piratehating Victorian London. The 3-D, CG-animated family comedy Arthur Christmas, an Aardman production for Sony Pictures Animation, at last reveals

the incredible, never-before seen answer to every child’s question: “How does Santa deliver all those presents in one night?” The answer: Santa’s exhilarating, ultra-high-tech operation hidden beneath the North Pole. But at the heart of the film is a story with the ingredients of a Christmas classic—a family in a state of comic dysfunction and an unlikely hero, Arthur, with an urgent mission that must be completed before Christmas morning dawns. Little known fact about Dracula: He is not only the Prince of Darkness; he's also the owner of Hotel Transylvania, a luxurious fivestake resort where the world’s monsters— Frankenstein and his bride, the Mummy, werewolves, zombies, and gremlins—can get away from it all and just “be themselves” in a safe, human-free environment. There are also new adventures on the way with Men in Black 3 and a new Spider-Man movie.

Nickelodeon

Ubisoft Fires Up With Assassin’s Creed

Nickelodeon Consumer Products recently announced new products for spring including Nickelodeon bicycles, protective gear, and accessories by Pacific Cycle; a line of SpongeBob headphones by Zeikos; Dora the Explorer play sets by Mega Bloks; and SpongeBob SquarePants and Dora the Explorer Sunbow Sunscreen.

Ubisoft, the world’s third-largest independent video game publisher, is licensing a strong portfolio of market-leading brands into categories including apparel and accessories, toy, and publishing. At this year’s Licensing Show, Ubisoft will showcase the brands Assassin’s Creed, Just Dance, and Tom Clancy’s Ghost Recon. Assassin’s Creed is the fastest selling new intellectual property in video game history. This year will mark the fourth release in the multimillion unit selling franchise. The Assassin’s Creed brand features iconic characters known and loved by millions of players across the world. Just Dance is one of the top unit-selling franchises in the world today with more than 14 million units worldwide since the franchise launched in October 2009. The Just Dance franchise is adored by tens of millions of tween and teen girls and features a unique neon fashion style and distinctive dance avatars that are instantly recognizable to the franchise’s fans. Tom Clancy is one of the most successful authors of all-time, and Ubisoft has launched a number of market-leading video game franchises based on the universe in his fiction. Specifically, Ghost Recon is a top-selling and highly rated franchise in the prestigious shooter category. The launch of Tom Clancy’s Ghost Recon: Future Soldier next year will be accompanied with a short film, toys, and more.

Summer 2011

Licensing Show 2011

Character & Entertainment

Sesame Workshop Names Hasbro Global Master Toy Licensee Hasbro became the global master toy licensee for Sesame Workshop in January. While working with Hasbro, Sesame Workshop will expand its offering of characters to showcase its ensemble cast. Consumers will also see a year-round business with products that are more interactive and educational. With Warner Bros. Interactive Entertainment, Sesame Workshop introduced Sesame Street: Once Upon a Monster, a heart-warming, humorous, and active new video game developed by award-winning Double Fine Productions, available this fall. In an original interactive experience, players join Cookie Monster, Elmo, and other Sesame Street characters as they explore a living storybook titled Once Upon a Monster. In the book, they make

new zany monster friends and share in their adventures, solving problems, forging friendships, and learning key life skills along the way. Sesame Workshop also introduced new apps featuring its beloved furry friends encouraging children to explore the alphabet and numbers, and to read books on an array of digital devices—making learning fun and convenient. Business is thriving internationally for Sesame Workshop, in such countries as Aus-

tralia, China, Canada, and the UK. Watch for new promotions around the brand’s 40th anniversary in Germany and 35th anniversary in the Netherlands.

Live Nation Merchandise Represents Top Music Artists & Bands Live Nation Merchandise (LNM) is the music industry’s pre-eminent licensing and branding company representing more than 100 top musical artists and bands including The Beatles, John Lennon, AC/DC, KISS, Aerosmith, The Who, Ozzy Osbourne, Lil Wayne, Nirvana, Sublime, Deadmou5, and The Sex Pistols. Whether it’s The Beatles, U2, KISS, or The Who, each program is crafted directly with the client to reflect their collective personality as to products, price points, manufacturers, and distribution. Each is a valuable “brand” that must be protected and not tarnished, while at the same time offering fans of

Summer 2011

varying means the opportunity to participate in the artist experience. The experienced team at LNM creates and executes a program capturing the spirit of that musical artist with everything from tops, fashion brands, accessories, fan appreciation merchandise, or limited-editions collectibles. Among many other programs, LNM developed a Woodstock exclusive at Target with apparel, back-to-school

products, picnic products (blankets, towels, plates, cups), and coverage in the Target weekly circular. Other programs have included a Beatles Restoration Hardware Holiday Program featuring The Beatles on the cover of Restoration Hardware’s holiday catalog, and Spencer Gifts’ annual KISS Halloween and KISS mass promotions. Live Nation Merchandise’s programs always reach the targeted fan base of each individual artist. One of the most comprehensive programs for LNM was the release of the remastered Beatles original albums. This happened simultaneously with the release of Beatles Rock Band and required working closely with Apple records, EMI/Capitol, Electronic Arts, and Harmonix/MTV.

Licensing Show 2011

Character & Entertainment

Uncle Milton Introduces Dinosaur Train and Star Wars Science Uncle Milton Industries, a leading manufacturer of science and nature exploration products, has introduced a range of new items from key licenses this year, including Dinosaur Train and Star Wars Science. Joining the Uncle Milton lineup for the first time, the Dinosaur Train brand will bring the popular preschool animated series, seen daily on PBS Kids, to life in the science and nature category. Teamed with The Jim Henson Company, Uncle Milton will introduce an all-new line of educational toys focused on the science behind the exciting world of Dinosaur Train and its cast of prehistoric characters. Key new 2011 Dinosaur Train introductions include the Hatchers, realistic dinosaur eggs that “hatch” Buddy, Tiny, Shiny, and Don from their eggs; Dino

Poop, a “hands-on” way for children to discover what dinosaurs ate and create their own prehistoric fossils; and the Train Station Scale, an interactive scale that allows children to compare weight of Dinosaur Train characters against a bus, a car, and other modern items. Building on the success of its popular Star Wars Science brand, Uncle Milton will introduce several new items to the line of fun and educational toys. Created to translate the science of the popular film franchise into toys that encourage

exploration and discovery, Uncle Milton’s 2011 Star Wars Science lineup features iconic elements such as a Mini Lightsaber Dark Side Detector and an assortment of new Lightsaber Room Lights. Designed to entertain and educate, Uncle Milton’s Star Wars Science line highlights the scientific workings and applications behind optics, electricity, and more.

Spin Master Rolls Out New Toys with Disney and NASCAR Spin Master has partnered with Disney to create an impressive array of toys for Cars 2, a blockbuster movie releasing later this month. Spin Master will create toys targeted for kids ages 4 and up, for all of North America. Cars and vehicles are a fundamental boys’ play pattern, which makes Dis-

Summer 2011

ney•Pixar’s Cars particularly compelling. In collaboration with Disney, Spin Master focused on making sure that the Cars toys reflect storytelling, an array of characters, and the themes of racing, humor, and friendship. Spin Master is introducing a collection of more than a dozen toys, including R/C vehicles featuring Zero Gravity technology, such as the transitioning Zero-G Finn McMissile vehicle. Fans can bring this British spy home for hours of intriguing play as Finn McMissile zips across the floor, and its front wheels allow it to transition up the wall to continue the race. Spin Master will also work with NASCAR to develop toy innovations and fun ways to reach the youth demographic (4-14) to grow the sport of racing.

This will be Spin Master’s biggest licensing partnership, as NASCAR plans to change the face of racing’s merchandising with Spin Master playing a major role in this change. The toys will hit the market next year. NASCAR products will include NASCAR Collector Diecast, a collection of authentic replicas of all of the top NASCAR driver cars; indoor/outdoor full function R/C cars with multiple frequencies for simultaneous racing for three top NASCAR drivers, including Dale Earnhardt Jr.; and NASCAR Pullbacks with front wheels that turn and a coin slot for wheelie action. The Spin Master items will be sold at mass-market retailers and in stores such as Home Depot, Lowe’s, Mobil, and Napa.

Licensing Show 2011

Character & Entertainment

Jim Henson’s Creatures Creep to Vegas for Franchise Expansion The Jim Henson Company’s mission for Licensing Show is to expand its current roster of licensees for its Henson Family Brands, Henson Independent Properties (HIP), and adult/legacy titles. As part of its family brands library, The Jim Henson Company relaunched the children’s series Pajanimals. The company will continue to develop a global licensing program for Pajanimals with an aim to launch new merchandise in Q3 2012, and will develop products that mirror the concepts of the show in categories including toys, publishing, sleepwear, slippers, bedding, bath, personal care, and developmental. The Jim Henson Company continues to build its Fraggle Rock franchise’s licensing program. The company has partnered with new licensing agents for Fraggle Rock rep-

resentation outside the U.S. The current Fraggle Rock licensing program includes adult Tshirts, accessories, home décor, adult Halloween costumes, plush toys, and puppets. The company is developing a new consumer-friendly treatment for Jim Henson’s Creature Shop and is seeking to develop licensed products in activity categories and plush puppets. Other family brands include Dinosaur Train; The Possibility Shop, around which the company looks to develop a pub-

lishing program and a craft kit program; Sid the Science Kid, for which the company seeks new toy, game, and puzzle licensees; Wilson & Ditch; and The Skrumps. Henson Independent Properties (HIP Brands) handles third party licensing for some brands and will introduce Psyclops at this year’s Licensing Show. Psyclops is a multiplatform product and online experience for tweens, teens, and young adults. Other HIP Brands include The String Doll Gang, for which HIP Brands is looking for partners in all categories; Laurent Hutton; and Skatelab. The Jim Henson Company is actively developing a U.S.-based licensing program for Jim Henson Designs. It’s also collaborating with designer brands on the development of products for young adults and babies.

KIDZ BOP Music Brand Is Going Strong for 10th Anniversary KIDZ BOP is celebrating its 10th anniversary this year. The latest volume in its bestselling audio series, KIDZ BOP 20, will be released July 19. KIDZ BOP 20 will be supported by a national TV ad campaign, running on Nickelodeon and Disney XD. Timed to the release, KIDZ BOP will introduce its “new class” of KIDZ BOP Kids, five young performers from across the country who will sing on the KIDZ BOP CDs, star in its TV commercials and music videos, and be featured in the brand’s promotional and licensing programs. KIDZ BOP’s publishing partner, F+W/Adams Media, will launch the brand’s first book series August 1 with three new titles. Each book includes a free KIDZ BOP music download. All-new KIDZ BOP musical greeting cards from

Summer 2011

American Greetings will continue to roll out through the year. KIDZ BOP Dance Party! for Wii will continue to be available at retail from D3Publisher. KIDZ BOP is further expanding functionality for its leading safe social networking and videosharing site for kids and tweens, KIDZBOP.com. The site’s popular “My Channel” feature lets members safely communicate with friends via its Safe Text Messaging System, which averages more than 1 million status updates per month. Kids can also safely produce their own web shows, cre-

ate and run their own “Super Contests,” upload videos and photos, and make music. KIDZ BOP will kick off its second annual KIDZ Star USA Talent Search this summer. KIDZ Star is the biggest online talent search for kids ages 15 and under, where more than 35,000 kids entered and 500,000 people voted during its first year. This year’s winner will receive a recording contract and a starring role in a KIDZ BOP TV commercial and music video.

Licensing Show 2011

Character & Entertainment

C3 Entertainment Further Expands The Three Stooges Universe C3 Entertainment has licensed The Three Stooges brand for products ranging from career advice to personal finance. Running Press, one of the largest independent trade publishers in the country and home of the original mini-editions and mini-kits, concluded a licensing agreement with C3 Entertainment, Inc. for a hardcover The Three Stooges Career Guide book. This 100-plus-page guide offers unique insights from the masters of mirth, merriment, and mayhem on finding the perfect job. Running Press also released The Three Stooges Mini Kit with a figurine in the “Three Monkeys” pose and a 32-page booklet featuring classic images and words of wisdom. Both products are available. The new Three Stooges Visa Platinum Credit Card was put in place through CardPartner, a UMB subsidiary, under a license arrangement with C3 Entertainment, Inc. Ani Khachoian, C3’s vice president of licensing and merchandising, says, “This program brings another global brand into The Three Stooges universe. Visa offers

Summer 2011

Three Stooges fans a safe and sound financial product and allows for adding a bit of fun as cardholders can choose from five distinct Three Stooges images for their card. You have the classic appeal of The Three Stooges plus a valuable real world financial product together for fans as consumers. The card benefits are many and varied, and the various rewards programs available make this a smart choice.” C3 licensed USAopoly, maker of custom Monopoly games, to produce The Three Stooges Monopoly Game and The Three Stooges Yahtzee Game, both scheduled for delivery to retailers beginning in July. “The Three Stooges and Monopoly bring two iconic brands together, brands that are deeply embedded in American culture and also enjoy a global following. The Yahtzee brand has also reached what could be called celebrity status as a game with many variations, [making it] a natural for The Three Stooges with the brand’s great imagery and pure fun,” Khachoian says. Major apparel manufacturer Changes has gone to market with the first of several new Three Stooges tees with both classic

imagery and some modern concepts. The classic license allows for fashion tops and sweatshirts. Changes took a Three Stooges movie license as has Skyzone Entertainment, Inc. Skyzone, which has a classic Three Stooges mobile game at market, will release a movie-based mobile game timed to the film’s release. Gtech Corporation has directed The Three Stooges lottery program since 2007. The Three Stooges is the most used entertainment brand by state lotteries with consistently high sell-through numbers, including several “sold out” programs. Gtech has added a movie license to its classic license.

Licensing Show 2011

Character & Entertainment

SqwishLand Heads to Licensing Show

CelebriDucks

SqwishLand offers a recession-proof alternative to higher-cost toys with online MMOG and mobile interactive experiences. The huge sales of SqwishLand products have led to 600,000 monthly users on Sqwishland.com just since the site’s launch last August. Now the company is expanding its presence via licensing, making unique online codes available for licensed products to give licensees access to this digital franchise. The humble origins of SqwishLand’s small rubber “pencil topper” collectibles craze began in 2006 with the ubiquitous red vending machines, expanding to more than 600,000 machines across the country, and has since transitioned into retail across specialty stores, as well as drug and grocery accounts. The break from an exclusive vending item to retail came this past November, with SqwishLand now available at retailers such as AC Moore, Justice, Five Below, Hallmark, Hastings, and Walgreens, plus thousands of specialty retailers in the U.S., with recent expansion across Australia and the Philippines, and soon to be introduced in the UK.

CelebriDucks, the original creator of celebrity rubber ducks of icons of film, music, athletics, and history, has created a new licensing division for its new Holy Smoker BBQ and Cocoa Canard logos. The company will license its logos in all categories from household to apparel. CelebriDucks is also releasing its new Holy Smoker BBQ floating piggy bath toy and new Cocoa Canard food line.

Axe Cop Surges

Sakar Expands Maxx and Heathcliff

Surge Licensing has secured a number of new licensing deals for webcomic Axe Cop. Deals include CollegeHumor.com as a strategic partner for webcomic distribution, Rubie’s Costumes for Halloween costumes worldwide, Steve Jackson Games for collectible card games, Dark Horse Direct, for an exclusive T-shirt program with Hot Topic, and StickerYou for online custom stickers. Surge Licensing VP Elan Freedman says, “As the Dark Horse-published Axe Cop trade paperback and comic book miniseries continue to instantly sell out, the fandom has been demanding product, and we couldn’t be happier to begin to offer it to them.”

Maxx The Sock Monkey, the plush hit created by Street Players Holding Corporation, is expanding his territory into branded youth electronics under a license agreement between Street Players and Sakar International. Two dozen Sakar SKUs ranging from molded monkey-shaped earbuds and fuzzy headphones to computer accessories, cases, and cameras are scheduled for release early next year, anchoring an aggressive Maxx merchandising program aimed primarily at children under age 11. Sakar International also announced a licensing agreement to create branded youth electronics featuring Heathcliff, the cantankerous 1970s comic-strip cat currently living out the latest of his nine lives under the guidance of FitzRoy Media. The feline will star on Sakar-developed digital products and accessories including earbuds, headphones, flash drives, cameras, cases and sleeves for portable devices, and a variety of other SKUs scheduled to pounce onto store shelves—as befits a cat—in Q1 2012. The license comes as FitzRoy Media rolls out a juggernaut of Heathcliff properties slated to include DVDs, games, live action/CGI feature films, eBooks, and an animated TV series. The campaign includes a groundbreaking plan to distribute the DVD and TV series content through the new McDonald’s closed circuit TV network being installed in an estimated 7,000 restaurant locations with more than 85 million store visitors per month.

Summer 2011

Licensing Show 2011

Character & Entertainment

Redakai and Zoobles

CBS Creates Interactive Product Extensions

Building on last year’s strategic partnership announcement with Spin Master Ltd., Cartoon Network Entertainment will highlight the toy maker’s portfolio of brands at Licensing Show, led by the allnew Redakai trading card game and Zoobles, last year’s breakout collectible toy for girls. Announcements will be made in a range of secondary licensing categories for both brands at the show. Redakai, Spin Master’s 3-D trading card game, was a virtual show-stealer when it was unveiled at Toy Fair. With the game launch and animated series set to launch on Cartoon Network later this year, CNE will meet with partners to discuss the strategy and timing behind the consumer product rollout of Spin Master’s newest brand. Additionally, with the animated series set to debut on Cartoon Network this year, CNE will announce partners for apparel and back to school. Zoobles, Spin Master’s breakaway collectible hit for girls for holiday 2010, will be featured at this year’s Licensing Show, with CNE actively meeting with partners to extend that brand into a range of consumer product categories.

CBS Consumer Products continues to translate its diverse portfolio of popular film and television properties into new, interactive platforms and integrated product programs. The “bebe for 90210” apparel collection, worn on-air by actresses in the show, will feature new programs throughout 2011. Expanded live event programs in 2010 brought Britain’s Next Top Model Live to UK fans and Star Trek Live to 50-plus venues, including its home at NASA’s Kennedy Space Center. Survivor: Live opens at Six Flags theme parks this year, offering fans the ultimate show experience. The new Showtime portfolio, featuring Dexter, The Borgias, Weeds, Californication, and Nurse Jackie, expands categories and retail channels targeting the network’s affluent consumers. CBS Consumer Products will join classic TV fans in celebrating the 60th anniversary of I Love Lucy under its Television City banner this year, and milestone anniversaries for Cheers and Mighty Mouse next year. Finally, Star Trek expands its interactive gaming platforms with last year’s launch of the Star Trek Online MMO, IGT’s new online casino slots, and an upcoming free-to-play browser game from Gameforge, all leading up to the muchanticipated J.J. Abrams’ Star Trek sequel that will hit theaters in summer 2012.

Summer 2011

Ludorum Expands Chuggington Products Ludorum continues to expand the global licensing program for Chuggington, the popular train-centric series for preschoolers that’s now a hit in more than 175 countries. A comprehensive U.S. consumer products program will begin to roll out this year after a successful toy launch at Toys “R” Us during holiday 2010. Twenty-five partners have come “aboard,” including Hallmark, Crayola, Mega Brands, Freeze, and Hedstrom. Since its U.S. debut in January 2010, Chuggington has earned a spot in the hearts of children and parents alike thanks to the show’s engaging story lines, important school readiness lessons, and colorful feature-quality CGI-animation.

Licensing Show 2011

Character & Entertainment

New K’Nex Sets for Sesame Street, Monster Jam, NASCAR K'Nex, the U.S. construction toy company, is releasing new Sesame Street Building Sets for ages 2+. The sets let kids build their favorite Sesame Street characters and a complete neighborhood. Sets include Sesame Street Best Friends Building Set and Sesame Street Talking Pirate and Talking Knight in Armor Elmo Building Sets. The authentic Monster Jam building sets include the world’s most popular monster trucks and K’Nexmen drivers. Monster Jam building sets are appropriate for children ages 5+ and available for purchase at Target, Walmart, Toys “R” Us, and online retailers including Knex.com and Monsterjamsuperstore.com. New sets include Intro Truck Assortment No. 2 to build seven monster trucks. Young Nintendo fans will soon be able

to build and play with their favorite video game characters, including Mario, Luigi, and Yoshi, with sets inspired by Mario Kart Wii. The new K’Nex Nintendo line, designed for ages 6+, will be available at all major retailers in this fall. Sets include Standard Kart and Bike Building Sets and Mario vs. Thwomps and Mario vs. Goombas Building Sets. K’Nex’s new building sets feature the most popular drivers of NASCAR. Sets include Stock Car Building Sets, 18 M&M’S Pit Crew Building Set, Dale Jr.’s Garage Building Set, and Micro-Scale NASCAR Car Building Sets. K’Nex is releasing its new Roary the Racing Car Building Sets, designed for children ages 3+. The new sets let kids build their favorite characters from the pop-

ular Roary the Racing Car television series. Sets include Roary, Tin Top, Maxi, Silver Hatch Start Line, and Silver Hatch Garage Building Sets.

Mattel Gets Glam and Ghoulish with Upcoming Products Mattel is expanding its Barbie and Monster High brands with new products available within the next year. A new partner for the Barbie brand this year, Titan Magazines is now the publisher for the popular Barbie Magazine, available now. Barbie and Noir are partnering to bring fashionable accessories to fashionistas everywhere this summer. For sporty fans, Barbie and Rawlings team up this season to bring stylish tee-ball bats to the field. The Monster High brand expands with publishing, crafts, décor, and party planning merchandise. Building on the success of its New York Times best-

Summer 2011

selling book series, Monster High explores new publishing formats this fall with its first editorial journal from Little, Brown Book for Young Readers. In partnership with Fashion Angels, Mattel introduces DIY arts and crafts kits that provide girls with stencils designs and sketch sheets, or molds and decorations, to make their own monster fashions, pets, and accessories, available this fall. Franco Manufacturing has signed on to release a room décor collection this fall. Tweens can express their ghoulishly unique personalities with freakishly fun Monster High decorative pillows, slumber bags, throws, and bath products. After debuting Monster

High Halloween costumes last year that sold out at Party City in just five weeks, Amscan expands its partnership with Mattel to offer Monster High-branded party goods this year. Rubie’s will bring Halloween costumes and accessorized products to mass-market retailers. To expand Monster High apparel, Mattel has partnered with JEM Sportswear (Awake, Inc.) to introduce a line of tween girls sportswear and fashion tees, available now; Komar Kids to release sleepwear in August; Dreamwave, a division of Bentex Group, Inc., to create a line of swimwear for next spring; and Xcessory International to introduce character-specific dress-up and role-play items with petti skirts, leg and arm warmers, wigs, box sets, and decorative storage trunks.

Licensing Show 2011

Character & Entertainment

FremantleMedia’s Star Power Portfolio

Hasbro Licensing

FremantleMedia Enterprises’ (FME) portfolio includes popular titles such as American Idol, The Adventures of Merlin, Project Runway, and the Jamie Oliver and Martha Stewart franchises. Idol, which is celebrating its 10th anniversary this year, is produced in more than 40 territories and distributed to more than 100 territories. For the last seven years, it has been a No. 1 television show in the U.S. and has launched the successful music careers of more than 50 solo artists worldwide. The X Factor is one of the most successful singing competition formats in the world. Created in the UK, it is now a global success with local versions produced in 20 countries and is set to launch in the U.S. this fall. In the UK, it is the top-rated entertainment program, and last season’s finale peaked with an audience of 21 million people—a 65 percent audience share. FME is seeking licensees in all categories and is available across consumer products, online, promotions, and sponsorship. Rebecca Bonbon is the latest design property from the creator of Hello Kitty, Yuko Shimizu. The brand is sold exclusively in the U.S. at Kmart and Sears, while widely available in most major Western European countries and gearing up to launch in the UK this fall. FME is seeking licensees in all categories.

The Global Brand Licensing and Publishing division of Hasbro will arrive at Licensing Show this year with its expansive brand portfolio from Transformers to My Little Pony and NERF, showcasing lifestyle licensing merchandise for kids, adults, and families. The lineup will span major categories including apparel, home, food, and publishing. Additionally, the company will spotlight ongoing momentum in the entertainment sector from film to television and digital gaming.

Wonder Forge

New Art to Celebrate the Legacy of Elvis

The Wonder Forge has partnered with Ludorum for game licensing rights to Chuggington, the new train property that is taking the U.S. by storm. The Toy Industry Association nominated Chuggington as a New Property of the Year in February. Products available for preschoolers this fall include Chuggington Let’s Ride the Rails! Game, and Chuggington Traintastic Cargo Game. The Wonder Forge will also launch the Angelina Ballerina Dance with Me game this fall for preschoolers.

Elvis Presley Enterprises, Inc. has unveiled the artwork that will be used throughout 2012 on merchandise and advertising, in conjunction with events that will commemorate the 35th annual celebration of the legacy of Elvis Presley. The artwork for the branding program will be available for EPE licensees at Licensing Show in Las Vegas. The artwork features a variety of Elvis silhouettes in bright, contemporary colors along with the type, “ELVIS PR35LEY.” With multiple versions of the artwork, licensees, sponsors, and other EPE partners will have the flexibility needed to include the branding on packaging, advertising, and merchandise. “Many of our licensees have shared with me that the bold colors and contemporary look and feel of this design illustrate for them how Elvis is still so relevant today,” says Carol Butler, vice president of worldwide licensing for EPE. Licensed merchandise with the commemorative 2012 “ELVIS PR35LEY” artwork is underway, featuring products from licensees Bradford, Mattel, Mead, Zippo, IGT, and an unannounced special music release from Sony. Categories are available for domestic and international licensing.

Summer 2011

Licensing Show 2011

Character & Entertainment

Jakks Unveils T-Pain, Cabbage Patch, Pokemon, Disney Toys Grammy-winning artist, record producer, and actor T-Pain has joined forces with leading U.S. toymaker Jakks Pacific, Inc. to launch the innovative I Am T-Pain Mic. Featuring voice modification technology like the kind made famous by T-Pain, the I Am T-Pain Mic is a handheld microphone from Creative Designs International (CDI), a division of Jakks Pacific. Cabbage Patch Kids will experience an exciting rebirth this fall as Jakks will launch a fashion-forward line, Kids and Toddlers, with a contemporar y

new look and interactive play features. Fashion dolls meet large dolls with the new Cabbage Patch Kids Fashionalities. Standing 14” tall with beautiful silky hair, these Kids each feature a different Fashionality style. Pokémon is set to have a blockbuster year. To coincide with the launch of Pokémon Black Version and Pokémon White Version video games for the Nintendo DS family of systems and the new TV animation series, Pokémon: Black & White, Jakks introduced a brand new toy line this spring, aimed to bring to life the experience of a Pokémon trainer: to catch, train, and battle Pokémon in the quest to become a Pokémon champion. Jakks also launched figures and plush featuring all new Pokémon characters, play sets that emulate the new Unova region, and

“Trainer” role-play items inspired by the TV series. Jakks has a line of Disney boys’ toys that includes products based on the films Disney•Pixar’s Cars 2, Pirates of the Caribbean: On Stranger Tides, and Real Steel. Jakks Disney girls’ toys include My First Disney Princess baby and toddler dolls, Disney Princess Ultimate Fairytale Kitchen, Disney Princess Electronic Toys, Princess & Me 18” princess dolls designed for the slightly older Disney Princess fan, and Princess & Me Winter Fashions assortment.

Marvel’s Superheroes Fly to Theaters and the Small Screen Marvel continues to assemble a major worldwide licensing and merchandising campaign to support Paramount Pictures and Marvel Studios’ theatrical slate, led by the blockbuster release of Thor (May 6), and the upcoming release of The First Avenger: Captain America (July 22). Marvel paves the way for the multi-character movie event, Marvel’s The Avengers, on May 4, 2012, which will feature Iron Man, Captain America, Thor, The Incredible Hulk, Black Widow, and Hawkeye. On the small screen, leading the way is The Super Hero Squad Show, an engaging introduction into the Marvel Universe featuring an exciting look at the greatest superheroes, including Iron Man, Hulk, Wolverine, Thor, the Fantastic Four, and

Summer 2011

Captain America. Additionally, Gazillion Entertainment has developed a massive multiplayer online (MMO) game based on the Super Hero Squad franchise, which is scheduled to launch shortly. Marvel is broadening its female focus with the expansion of a lifestyle brand targeting the female demographic, anchored by the inspirational and aspirational Black Widow, who will be featured in Marvel’s The Avengers. This halo program will integrate aspects of the character Black Widow into a fashion program. Devised for the fashion conscious consumer, the highly styled, ultra-feminine broader licens-

ing program includes lifestyle apparel and accessories incorporating Marvel’s iconic superhero and romance art with fashion-forward glamour and design. Part of Marvel’s strategy to extend the reach of its popular superhero franchises to new audiences, the unique licensing program—designed for the girls, tween, junior’s, and missy segments—is tailored for all levels of retail distribution, including mass market, mid tier, upstairs department stores, specialty stores, and boutiques, enhancing Marvel’s presence in both traditional and non-traditional retail channels.

Licensing Show 2011

Character & Entertainment

Domo Dominates Big Tent Properties at Licensing Show 2011 New York-based branded entertainment company Big Tent will announce a major cable entertainment brand that will join its growing client portfolio at Licensing Show. It will also showcase properties, including pop culture sensation Domo; Discovery Communications’ popular Discovery Kids and TLC brands; U.K.’s social expression brands Purple Ronnie; global leader in personalization products PixFusion; and preschool, tween, and teen brand Miffy and Friends. To expand the Domo brand, a group of licensees will roll out new product this year and beyond to help fill the insatiable appetite of Domo fans. Big Tent will continue focusing on expanding the Domo licensing program in the following key categories: fashion, video games, casual games, elec-

tronics, and home décor. As part of the re-launch of Discoverykids.com, Discovery Kids from Discovery Communications, Inc. will unveil an array of gaming initiatives this year that tie into the brand’s “explore the world around you” theme. Big Tent is looking to expand the licensing program for Dis-

covery Kids in the following categories: video game and MMOG, electronics, apparel, home décor, outdoor sport, food, and promotional partnerships. Big Tent will focus on key categories for TLC at the show, such as home and organization, cooking, fashion, and weddings. As the network extends its baby programming with TLC Baby, Big Tent seeks to secure several foundation partners for the brand across multiple categories, including learning and development, health and safety, bath, feeding, electronics, furniture, room décor, bedding/blankets, layette, and apparel. Big Tent also seeks to duplicate the UK success of Purple Ronnie in the U.S. with a licensing program that focuses on social expression, casual game, publishing apparel, gift, and novelty categories.

CPLG U.S. Expands Preschool and Teen Brands with Products CPLG U.S., the licensing arm of Cookie Jar, heads to Licensing Show with preschool classics such as Caillou and Richard Scarry’s Busytown, boys’ favorite Johnny Test, girls’ favorite Strawberry Shortcake, cheerleader-inspired Varsity, basketball ambassadors the Harlem Globetrotters, and teen pop culture phenomenon Degrassi. Leveraging its retail success in Canada, ID Toys introduced more than 14 SKUs of a new Caillou toy line in the U.S. this spring. The line includes figures, play sets, puzzles, bath toys, and plush. A new Caillou e-commerce shop went live as part of a brand new PBS Kids Shop. CPLG U.S. is establishing a strong licensing program for Richard Scarry’s Busytown. As master toy partner, The

Summer 2011

Bridge Direct is launching a new toy line for fall. The Wonder Forge’s I Can Do That! Games division has a number of Richard Scarry’s Busytown products, including the award-winning Eye Found It! board game and the new Busy, Busy Airport Game. CPLG is renewing the yearlong partnership between the American Automobile Association (AAA) and Richard Scarry’s Busytown to continue promoting child passenger safety. Koba Entertainment launches a live, ticketed stage show this fall. CPLG U.S. has a range of licensed product launching this year based on Johnny Test, Cookie Jar’s animated TV show on Cartoon Network. Product launches include DVDs from Mill Creek Entertainment; Nintendo DS game from

505 Games; comic book and graphic novel from Viper Comics; Print On Demand apparel and accessories; room décor, party supplies, and holiday items from TysToyBox.com; apparel and accessory line from MTC Marketing; and novelty toys from ID Toys. As Strawberry Shortcake’s global licensing agent, CPLG has inked licensing deals with consumer packaged goods companies that will result in a range of fruitflavored or -scented consumable products launching in North America food and personal care aisles this year.

Licensing Show 2011

Character & Entertainment

Hot Wheels Race to Stores with ToyQuest

VIZ Media Licenses

Start your engines—ToyQuest has signed a multiyear strategic licensing agreement with Mattel’s Hot Wheels to launch a new line of electronic motorized vehicles this fall. The new product line, a first for Hot Wheels, will include re-creations of some of the most desired and collected Hot Wheels models, including the Twin Mill III, Rat Bomb, and Arachnorod. The vehicles’ personalities and world-famous styling are highlighted through an array of eye-catching, light-up features combined with thundering engine sounds and jaw-dropping motorized stunts. “We are thrilled to partner not only with the No. 1 vehicles brand but also one of the leading boys’ lifestyle brands,” says Peter Magalhaes, vice president of business development for ToyQuest. “Through our collaboration with the Hot Wheels team, we have developed a line that creatively speaks to collectors while offering compelling features and endless entertainment for younger fans of this iconic property.” Starting this fall, these Hot Wheels electronic motorized vehicles will be available at major retailers nationwide, including Walmart, Target, Toys “R” Us, and Kmart.

VIZ Media, U.S. distributor of anime and manga, acquired DVD, downloadto-own, and graphic novel licenses for its kids imprint, VIZ Kids. VIZ is distributing Hero 108, a Cartoon Network series, on DVD and through iTunes. VIZ is also releasing the graphic novel Mameshiba on the Loose! and character guide Meet Mameshiba in July; manga, a travel activity kit, and other merchandise based on the latest Pokémon incarnation, Pokémon Black Version and Pokémon White Version; Mr. Men and Little Miss original graphic novels next spring; and original graphic novels next spring based on the all-new animated series Voltron Force debuting on Nicktoons this summer.

Fox Trots to Vegas

Precious Moments Signs Pipka

Fox Consumer Products is bringing the hottest entertainment properties to headline Licensing Show. The world’s longest-running scripted show, The Simpsons, is about to celebrate its 500th episode. Family Guy survives 10 dysfunctional years in Quahog, and Glee takes center stage as a global pop-culture powerhouse. On the big screen, Alvin and the Chipmunks are Chipwrecked, Scrat triggers a world-changing cataclysm in Ice Age: Continental Drift, and from Blue Sky Studios comes an all-new animated tale, Leaf Men . Tim Burton presents the 3-D action-thriller Abraham Lincoln: Vampire Hunter , and the legendary Ridley Scott helms the epic sci-fi film Prometheus.

Precious Moments, Inc., home of the renowned Precious Moments Collection, has announced its acquisition of Prizm, Inc., Kansas-based maker and distributor of the award-winning Pipka Collection. This represents the first time that PMI has expanded its brand beyond the famous teardrop-eyed art of Sam Butcher and marks a move toward diversity that the company is poised to undertake. In making the historic announcement, PMI President Don Butcher noted the synergy of adding an artist of Pipka’s caliber to the Precious Moments family of gifts and collectibles. “We are very excited about the potential that Pipka represents for our position in the marketplace,” says Don Butcher. “This highly respected artist and storyteller shares our values and traditions, and has established herself as a premier creator of original, authentic old world Santas, Nativities, and other inspiring products. It is with great pride that we welcome Pipka, and we look forward to working together.” In acquiring the assets of Prizm, PMI will totally enfold all existing product as it begins production of new releases. The Prizm entity is being dissolved, according to coowners Michele Johnson and Gary Meidinger.

Summer 2011

Licensing Show 2011

Character & Entertainment

Bravado and MESH

Winnie the Pooh Goes Green with miYim

Bravado, a global music merchandising company and division of Universal Music Group, is launching a new venture with Music Entertainment Sports Holdings (MESH), a division of LF USA, to create multidepartment contemporary lifestyle brands inspired by the powerful connection between music and fashion. The venture will develop, market, and distribute diversified collections based on the brands of today’s top musical artists. As part of the new venture, Bravado will partner with MESH on the design, marketing, and distribution of exclusive collections and better merchandise, which are expected to launch later this year at specialty and department stores throughout the world. The partnership combines LF USA’s strength in building global brands supported by its global sourcing network and distribution resources, MESH’s expertise in creative design and fashion opportunities, and Bravado’s renowned licensing prowess and world-class roster of superstar artists, to establish an innovative approach to creating, distributing, and monetizing branded artist merchandise.

miYim is releasing earth-friendly plush collections featuring Disney characters. This July, Winnie the Pooh, Tigger, Eeyore, Piglet, Mickey, and Minnie will make their colorful debut in soft, safe My Natural eco-plush. This Disney collaboration will allow miYim to have a bigger voice in the green movement. Classic, relevant characters such as Winnie the Pooh help miYim connect with more parents in the company's quest to keep children healthy and chemicalfree. This summer, miYim's Disney eco-plush toys will be available in a variety of sizes and price points. Known for its safety, softness, and beautiful colors, miYim’s innovative eco-plush is made with certified non-toxic, earth-friendly fabrics, including organic and natural (unprocessed, unbleached) cotton. The stunning colors are achieved with low eco-impact dyes that are free of heavy metals and toxic substances.

Summer 2011

The Oogieloves Perfume and Bath Products Kenn Viselman partnered with APRA International and Oogielove Movie Merchandise, LLC for The Oogieloves. APRA will develop an extensive line of perfume, bath, and beauty aid products for children, including distinctive scents for the lovable Oogielove friends—Goobie, Toofie, and Zoozie. The entire collection will be available to time with the premiere of the upcoming multimillion-dollar, interactive motion picture musical, The Oogieloves in the Big Balloon Adventure. The APRA deal strategically includes national mass-market retailers and drugstore chains throughout the United States and Canada, which ties in promotionally with plans for the $30 million P&A fund for The Oogieloves’ first theatrical release in the fourth quarter of this year. This partnership marks the first of many upcoming announcements that showcase the interactivity of The Oogieloves brand.

Licensing Show 2011

Character & Entertainment

Wildflower Group Expands Cut the Rope

Harlequin Puzzles

The Wildflower Group, a leading New York City-based licensing and branding agency, will “feed” fans’ hunger for Cut the Rope, the award-winning physics-based game, which is published by indie games publisher Chillingo (a division of Electronic Arts), and developed by indie games studio ZeptoLab. The Wildflower Group will develop a comprehensive new licensing and merchandising program set to debut this year. The Wildflower Group is currently in discussions with potential licensees for Cut the Rope board games, card games, and puzzles; back-to-school, stationery, and other paper products, including journals, stickers, posters, and calendars; sleepwear, loungewear, and boxers; publishing; food and candy; and accessories, including bags, backpacks, and jewelry. Already on board is Commonwealth Toy & Novelty, which is producing licensed soft/plush toys and accessories, PVC toys and accessories, activity sets, room décor (pillows, flags, wall hangings), and balls. In addition, apparel manufacturer Changes is currently placing Cut the Rope product at retail chains nationwide in the following categories: T-shirts, sweatshirts, fashion tops, and track jackets for kids, teens, young adults, and adults.

Great American Puzzle Factory will release a series of puzzles produced from classic images of the Harlequin catalog. The line will include three 1,000piece puzzles, as well as a multipack that will offer three different puzzles of varying piece-counts (500, 300, and 100) in one box. The vintage book cover art selected for the first designs in the Harlequin line include The Dark Page, We l c o m e to Paradise, and Where the Wolf Leads.

Hexbug Creatures

Universal Features Despicable Me in Vegas

Innovation First International, creators of Hexbug Micro Robotic Creatures, a boys’ toy at retail this year, is partnering with PDQ, Building Q’s sister company. PDQ will both license the Hexbug brand as well as seek out appropriate and strategic licenses to apply to the award-winning toy line. Key retailers are already looking forward to the products, and the goal is to develop a short list of marketing partners that will ensure the Hexbug brand continues to grow and resonate with boys ages 5 and up. PDQ is scheduling select meetings at Licensing Show to discuss the opportunities for next year and beyond with category specific partners.

Universal Partnerships & Licensing (UP&L) arrives at this year’s Licensing Show with a rich portfolio of entertainment properties available for licensing, retail, and promotional partnerships. Leading the lineup is 2013’s Despicable Me 2 from Chris Meledandri’s Illumination Entertainment, the sequel to last year’s $540 million worldwide blockbuster hit. In addition, opportunities with several 2012 tentpole films will be showcased, including Snow White and the Huntsman (June 1, 2012), a breathtaking new vision of the legendary tale from Joe Roth, producer of Alice in Wonderland, that stars Kristen Stewart, Oscar winner Charlize Theron, Chris Hemsworth, and Sam Claflin; and 47 Ronin (November 21, 2012), the epic 3-D fantasy-adventure based on ancient Japan’s most enduring tale, starring Keanu Reeves. On the promotions side, Universal will focus on several key titles including Illumination Entertainment’s Dr. Seuss’ The Lorax (March 2, 2012), with the voice talents of Danny DeVito, Zac Efron, and Taylor Swift; and the first film in development through Universal’s Hasbro partnership, Battleship (May 18, 2012), an epic action-adventure that unfolds across the seas, in the skies, and over land as our planet fights for survival against a superior force.

Summer 2011

Licensing Show 2011

Character & Entertainment

Lisle International Brings ZhuZhu Pets to Licensing Show 2011 ZhuZhu Pets, creation of St. Louis-based firm Cepia, LLC, has grown from the original four interactive hamsters into a whole Zhuniverse of pets and play sets. This has led to a worldwide ZhuZhu Pets licensing program with a wealth of merchandised product entering the market and further opportunities available for prospective licensees. The brand is aimed at girls ages 4 to 12 and boys ages 4 to 8. Renowned for its plush toys, ZhuZhu Pets has added to its list of accolades, picking up Toy of the Year Awards last year in the U.S., UK, Czech Republic, and Russia, and girls’ Toy of the Year in Australia. Lisle International is the master licensing agent for ZhuZhu Pets and has appointed sublicensing agents in impor-

tant territories to ensure there is coverage across the markets. These include Character Licensing & Marketing (CLM) as sublicensing agent for South Africa, Stella Projects for Australia and New Zealand, and Kidz Entertainment/EEMC for Nordics and Eastern Europe. “The ZhuZhu Pets property has kicked off to a fantastic start, with many key categories already secured across a variety of territories, and plenty more licensing opportunities in the pipeline,” says Francesca Lisle from Lisle International. “We are confident that this year’s show will prove lucrative for prospective partners, and we look forward to the expansion of the property across the globe.” Las Vegas will be the place to hear the latest developments for the brand, such as

a new 72-minute 3-D, CGI-animated film, The Quest for Zhu, to be released on DVD this year, and a second movie in the works for next year, called Power of Zhu.

Pacific Entertainment Delivers Baby Genius Siblings in Vegas The award-winning Baby Genius brand of musical “edu-tainment” for infants and toddlers, created by the founders of Pacific Entertainment Corporation, has picked Licensing Show as the debut of a fresh new generation of Baby Genius characters, says CCO Larry Balaban. The classic Baby Genius characters, Vinko, DJ, Tempo, and Frankie, will soon welcome a new group of younger musical buddies created to introduce children to the world of music. Incorporating the Baby Genius theme of “music makes a difference,” the new characters will be the focus of a major QSR promotion launching next year and a series of iOS applications that will be announced in June. At Licensing Show, Pacific Entertainment will seek licensing partners for Baby

Summer 2011

Genius in a wide variety of categories to complement these new branding initiatives and its worldwide master toy license deal with Tollytots, a division of Jakks Pacific, Inc. In time for back-to-school 2012, Tollytots is expected to launch a comprehensive line of musical and early learning toys at retail, which will incorporate the music, characters, and themes that have made the Baby Genius series of videos and music CDs so successful among children and parents around the world. The new toy line will cover a broad range of exclusive categories including learning and developmental toys, most

plush toys, and musical toys, as well as several other nonexclusive categories. “We are excited to be expanding our most valuable property with a fresh group of endearing characters and anticipate even greater success for Baby Genius as a result of this new initiative,” says Balaban.

Licensing Show 2011

Character & Entertainment

Big Idea Entertainment Sprouts New VeggieTales Merchandise Big Idea Entertainment, a leading studio and producer of children’s and family programming, characters, and brands, will expand the licensing program for its popular VeggieTales brand by introducing a bushel of new merchandise. The company recently inked deals with several new licensing partners across key categories, including floor and tabletop cardboard play sets from Box Creations, GigglePOD interactive kid’s video booths from Primary Leisure Global, and removable wall art from Brewster Home Fashions, in addition to deals with Golden Chair (children’s furniture) and DayWind (karaoke CDs). The brand-new VeggieTales products will hit retail as early as this summer. These new licensees join recently added premium VeggieTales partners, including Strottman International (Kid’s Meal promotions with Chick-fil-A set for August), American Puzzle Company (wooden puzzles and trains), Zoobies (plush pillow character and blanket combinations), Tabbies (index tabs, stickers, temporary tattoos, and wall clings), and Victory Designs (children’s guitars). Other industry leaders in the company’s current roster of licensees include

Summer 2011

Enesco-Gund/Gregg Gift (plush toys and gifts), Dynamic Displays (parade and event inflatables), Talicor (puzzles and games), Kids Stuff Marketing (regional and catalog QSR product offerings), Cranston (cotton fabrics), ConAgra (fruit snacks), and Northwest Company (bedding, blankets, and throws). “We are honored to have such highcaliber new partners on board as our licensing and merchandising program continues to grow,” says Brian Mitchell, director of marketing and licensing for Big Idea Entertainment. “All of our partners provide us with wonderful opportunities to deliver top-quality and engaging VeggieTales products to an ever-expanding worldwide fan base. With several open categories, we believe there is even more consumer product growth potential for VeggieTales as we share the enduring values the brand represents through wholesome family entertainment.” Build Your Imagination Box Creations is a manufacturer of corrugated play structures that encourage role play and good old fashioned fun. Big Idea is teaming up with Box Creations this fall to offer VeggieTales-themed floor and tabletop cardboard play sets, including Sweetpea Beauty’s castle and The Pirates Who Don’t Do Anything pirate ship. They’re safe and affordable products that provide a make-it-your-own/do-it-together activity for families to enjoy. Interact with Your Veggies Primary Leisure Global manufactures and distributes the GigglePOD to amusement operators for store groups, such as Walmart, and for shopping centers and malls. The unique interactive video booth offers the opportunity for children to

watch their favorite animated show clips, while their parents/guardians are engaged through an external monitor showing clips, trailers, and special offers. GigglePOD will launch in the U.S. with the lovable VeggieTales characters this summer. VeggieTales Lessons Really Stick Brewster Home Fashions is a leading wallpaper and wall décor company based in the Boston area, with offices in the UK, Toronto, and Shanghai. A fifth generation, privately held company, Brewster Home Fashions is a leading supplier to a diverse group of retailers in the mass, home center, and specialty retail channels. The company plans to expand its presence this summer and fall with an assortment of VeggieTalesthemed wall stickers and appliqués. Open categories for 2011-2012 include food and beverages, electronic games, and apparel.

Want to Reach Millions of Consumers During the Holiday Season? • Holiday Gift Guide in the November issue of Womanʼs Day magazine, read by 20 Million* Consumers (*MRI Fall 2010).

• Extensive Online Presence a comprehensive companion website, thetoyinsider.com, features links to participating advertisersʼ and retailersʼ websites.

• Participation in National Sweepstakes and Guerilla Marketing Programs to showcase participantʼs products.

• Extensive Media Coverage across TV, Print, Radio and Online News Sources.

To participate in the 6th Annual The Toy Insider™ contact: Jonathan Samet — 212.575.4510 x 2321, jsamet@adventurepub.com Laurie Schacht — 212.575.4510 x 2320, Laurieschacht@aol.com www.thetoyinsider.com

Licensing Show 2011

Character & Entertainment

A Squared Brings Build-A-Bear Out of Den to Vegas and Retail A Squared Entertainment (A2), a full-service brand entertainment company, partnered with the world’s only make-your-own-stuffedanimal retail entertainment experience, Build-A-Bear Workshop. A2 Entertainment will manage the entertainment and external licensing program for Build-A-Bear Workshop. Together, the companies will produce original multimedia entertainment for distribution online, onair, and on other digital devices. In addition to creating new multimedia products, the companies will develop a new line of licensed merchandise that will be sold outside Build-A-Bear Workshop stores through select retail outlets. Based on the strength and popularity of the Build-A-Bear Workshop brand, the new products will include DVDs, accessories, apparel, books, and additional branded merchandise. “A2 Entertainment is thrilled to partner with Build-A-Bear Workshop, one of the most respected brands in children’s entertainment,” says Andy Heyward, CEO of A2 Entertainment.

Summer 2011

Build-A-Bear Workshop founder and CEO Maxine Clark adds, “We are excited to be working with A2 Entertainment to enhance our licensing program and to expand our entertainment offerings. Together, we will provide imagination, creativity, empowerment, and fun to Build-A-Bear Workshop guests. By partnering with A2 Entertainment, we are creating a top entertainment brand as we engage guests both in our stores and at home.” Expanding upon the company’s entertainment property of Holly and Hal Moose: Our Uplifting Christmas Adventure, which premiered for holiday 2009 on ABC Family, A2 Entertainment will produce other original programming for Build-A-Bear Workshop and explore the development of complementary consumer products. A2 will represent Build-ABear and the following properties at Licensing Show: Martha & Friends is an animated web series teaching children do-it-yourself skills in the areas of cooking, crafts, and more. Created by A2 in partnership with Martha Stewart, the series is complemented by an interactive world of online games and activities reinforcing the

lessons taught and enriching the experience for kids. Martha & Friends launched in July 2010 with six prime-time TV specials on the Hallmark Channel. Secret Millionaire’s Club is an animated web series educating kids about management and investing. Created by A2 in partnership with legendary American businessman Warren Buffet, the series is also complemented by an interactive world of online games and activities. The series premiered in April with four primetime TV specials on The Hub and a national promotion with By Kids For Kids. Gisele & The Green Team is an animated web series educating children on the protection and conservation of the environment. Created by A2 and inspired by supermodel and ecological advocate Gisele Bundchen, this web series is also complemented by an interactive world of online games and activities. It premiered in November and launches on Cartoon Network Brazil this summer.

GETS UGLY! Pretty Ugly LLC gears up with a new licensing strategy and a feature film on the way Pack your bags, we’re going to Hollywood! In conjunction with the recent announcement that Chris Meledandri’s Illumination Entertainment has signed on to turn Uglydoll™ into an animated film, Pretty Ugly, LLC is now actively partnering with licensees who want to get in on the Uglydoll phenomenon. If you’ve seen the Uglydoll exhibit in the past and have been impressed by its fabulously unique product line, your wait to acquire licensing rights has finally ended. With their love for artistic expression, the adorable, comedic Uglydoll characters created by David Horvath and Sun-Min Kim, are fully capable of supporting a wide range of licensing opportunities. Within the past 10 years, MILLIONS of Uglydoll items have been sold through thousands of retail doors. “We’ve been going to the show for 10 years, and we’re going there to say ‘yes’ this year to licensors,”

says Horvath. “We’re pushing the ‘Go’ button. We can finally welcome you with open arms to our booth.” What started as a simple drawing of a playful orange doodle named Wage, identifiable with his trademark smock, has turned into an Uglyverse™ of witty and unexpectedly adorable characters. More than 40 awardwinning Uglydoll characters are available in a variety of sizes and styles of toys, each with their own distinct humorous personalities. Illumination Entertainment, producers of the Uglydoll movie, created the hit movies Despicable Me and Hop. Illumination plans to start with the Uglydoll feature film and then branch out into a wider range of media opportunities. Be sure to visit Uglydoll at booth #3669 and get started being beautiful and unique now! Contact: pretty@uglydolls.com (866) Hey-Ugly

Hot Shots

Paramount Licensing

ADVENTURES IN LICENSING With a huge international property about to hit the big screen, Paramount’s LeeAnne Stables talks to us about the latest from Hollywood’s elite studio. by Bryan Joiner

The Licensing Book: What would you say is the biggest initiative going into Licensing Show? LS: We’re excited about Las Vegas because we’ve got a new booth and a talented, new in-house team on our product development and sales side. We’ve also been talking to agents, and we’ve been refreshing the outlook and strategy for Paramount Licensing. The biggest news for us is that we have a theatrical title that we hold the worldwide licensing to, by two of the world’s greatest filmmakers— Steven Spielberg and Peter Jackson. When you come out of the box with a Spielberg-directed film like we are with The Adventures of Tintin, it’s a really strong play. For Tintin, we have the global merchandising rights, but the best thing about Tintin is that it’s a franchise opportunity for us—it’s one of three planned films that Spielberg and Jackson are going to do based on the Tintin books. We’re going to be talking to people in Vegas about the long-term opportunity that Tintin represents in the market. Our second focus is our classic properties. We’ve focused on refreshing assets and coming out with a lot of great looks. TLB: What sort of awareness level does Tintin have in the U.S.? LS: There’s a moderately low awareness in the United States of Tintin as an existing property. Overseas, there’s strong recognition, especially in Europe. When we started looking at the markets, though, the No. 1 market for Tintin was in India, where they used the comic books

by Hergé to teach the English language. At more than 230 million books sold worldwide, it’s very deep-pocketed awareness around the world. In the United States, we have more of a long-term approach. One of the strategic aspects of rolling out the property in the U.S. is that the movie actually opens internationally about six to eight weeks before we open in the United States. The wave of global awareness of Tintin is going to serve as pre-promotion for the U.S. release date, and it will help drive U.S. holiday box office.

TLB: Certainly, there’s a huge awareness of Steven Spielberg and Peter Jackson in the United States. LS: That’s just it: we’re not really concerned about pre-awareness for the particular title in the U.S. because people are very interested in whatever movies that Steven and Peter make. We’ll also have our consistently successful Paramount marketing effort to educate and entice audiences into seeing what is really an incredible film. It’s in 3-D, it’s the highest technological level of filmmaking with animation and motion-capture from Peter Jackson’s Weta Digital studios in New Zealand. They’ve been working on this for two years. The material is incredible to look at, and the story is a wonderful family adventure. What little boy isn’t going to want to be Tintin, a young reporter who, along with his little dog Snowy, goes on these great adventures? The licensing opportunity is long-term with three movies anticipated in total. We’re excited about what we’ve already done and the long-range plan that we’re working on.

The Adventures of Tintin The Steven Spielberg-directed, Peter Jackson-produced film will launch in Europe before making its way Stateside.

TLB: This sounds like a truly global effort for licensing. LS: It is. We’ve been everywhere, working all around the world with our agents, doing a lot of promotional work as well. We’ve got direct-to-retail, we’ve got most categories covered. It’s a plan that’s been put into really high gear in the last six months, and a long-term play, just knowing that the movies are likely to continue. TLB: You’re at the other side of the process with the Mission: Impossible films—you have a franchise that’s been built up. What’s the resonance like with this property, when you have the first movie coming out in awhile? LS: I can’t believe it’s been five years. The last Mission: Impossible was one of the first movies I worked on when I came to Paramount. It’s been really exciting to see this current film. Not only did we shoot it around the world —we were in Dubai, and some of the stunt sequences Tom Cruise did there were unbelievable—but you say the words “Mission: Impossible” and people think action and international. We’re going to have a strategic specialty program for that. We have a couple of things we’re going to announce at the show for product related specifically to this film. It’s one of those films that maintains its position in pop culture, and we have some plans to continue that in a way that fits the brand. You’re never going to see a long list of products that don’t make sense. TLB: Footloose seems to be capitalizing on the cultural zeitgeist right now for dancing. It even has Julianne Hough. LS: It’s such a great movie. It’s already finished, and I had a chance to see it. It’s just so much fun. That’s an interesting opportunity because if you look at the spectrum of our offerings, we’ve got The Adventures of Tintin, which is a completely new release for us; and our strong catalog with The Godfather and Breakfast at Tiffany’s. Footloose is a film that has been a part of that catalog that has kept on giving. We have an existing licensing program for Footloose since the movie came out in the ‘80s. Now we have a new movie with new talent, but it’s very true to the Footloose heritage. Our director, Craig Brewer, is from the South, and had a great take on the classic. The movie has great dancers, and the guy who’s playing the Kevin Bacon role, named Kenny Wormald, is going to be a big star. When people see him, he’s going to jump out. This gives us an easy opportunity to

refresh the strength of a library title that’s been in the market for quite some time. The good thing about that movie is kids that have never heard of the old Footloose are going to love it, while at the same time there’s a strong nostalgic appeal.

TLB: You have two other new releases: Paranormal Activity 3 and The Invention of Hugo Cabret. LS: Our focus is three-pronged. The Adventures of Tintin is our biggest release, and we also talked about Footloose. The Invention of Hugo Cabret is a fantastic film from Martin Scorsese that’s his first 3-D family film. It’s a story about a young boy who’s involved in a mystery, and a search. We’re currently developing several specialty deals. It’s based on a very successful children’s book, and the book itself is full of wonderful drawings. We’re putting together a platform of deals that match the integrity of the filmmaker as well as the film itself. Paranormal Activity is one of those specialty movies in the horror genre. The first movie was made for $15,000 by a young guy, Oren Peli, and Spielberg saw it and we ended up releasing it, and it grossed $100 million. We released the second one and built a Halloween franchise. Now the third one is coming out, and we’ll be talking about that to the licensing community where a seasonal opportunity makes sense. The other part of our business, which is the bread and butter, is the business of the classic titles from Paramount. It’s 50 years later for Breakfast at Tiffany’s, so we’ve got activity bundled around it, along with a 50th anniversary companion book. Our home entertainment group is releasing a Blu-ray anniversary edition of the movie that we’ll release product alongside as well. Breakfast at Tiffany’s and Audrey Hepburn are so beloved. We have a CultureNik deal and a Vandor deal, and we’re continuing to build the program. One of the directives since I’ve been running this group is that we have assets that are fresh and interesting and usable for existing licensees and that we can approach or re-approach new licensees. I have a product development team that has, in some ways, gone back to the drawing board, with a challenge to take our top five titles and revitalize the style guides. Licensees and retailers can expect a lot of excitement from Paramount going forward, especially with the studio’s 100 year anniversary in 2012—stay tuned!

Things to Remember

Jennifer Richmond

Simple Tips For Getting Business Done Jennifer Richmond, most recently senior vice president of licensing and media at Jakks Pacific, has joined Richmond Management Group, a consulting and legal service firm. She shares some seemingly simple things to remember when trying to get a licensing deal done.

1. Be nice. Licensors want to do business with people that they like. Long-term business relationships are built on mutual admiration, respect, and friendships. 2. Leave your ego at home. Don’t show-off, name drop, or brag about your new yacht or home in Palm Beach. You don’t look bigger by making the licensor feel smaller. 3. Trust your instincts. If you think that you are pushing too hard or that the licensor seems to be only going through the motions with you, you probably are or they probably are. 4. Don’t go above your contact or the person that approached you with the opportunity, to his or her boss. Good managers allow their subordinates to make recommendations or decisions on the partners they choose. By going above them, you are undermining them and only making them upset with you. 5. By the same token, treat everyone that you deal with the same. Whether it is the SVP or the associate licensing manager, give them the same level of respect and courtesy. That manager may be the next SVP that you are pitching in just a couple of years. The licensing industry is relatively small, and people have long memories. 6. Don’t turn away opportunities before you see them. Take as many meetings and calls as you can. You don’t know who is handling the “next big thing.” Many opportunities came my way because another company didn’t take the meeting. 7. Identify your strengths as a company and play to them. “We are the quickest company to market of any of the companies of our size and share in the toy industry.” 8. Identify your competition’s strengths and recognize them to the licensor, but turn those strengths into weaknesses. “Although

company ABC has a stronger International distribution network with multiple company offices, we are able to go to choose our own distributors in every country to ensure that your brand is always a priority and with a leader in the category.” 9. Understand that the licensor is the client. You are performing a service for them just as much as they are helping your business grow. 10. Become an expert in the brand you are going to license before you pitch. For example, Hello Kitty is a little girl; she is not a cat. She will not “meow” and she does not speak. 11. Try to delve into the motivation of the licensor. Is it to build awareness for their brand, drive dollars, or perhaps just secure a highprofile partner that will help to generate additional licenses? Structure your deals and pitches so that you capitalize on that motivation. 12. Don’t be a sore loser. I can’t tell you how many times licensors told me that they dreaded calling the other bidder as they felt sure that they would get an earful for not awarding the business to them. It is fine to express disappointment, but thank them for their consideration and say that you hope that you will have the opportunity to work with them in the future. 13. Be a gracious winner. Thank the licensor for having the confidence in you and your company for awarding you the business. 14. Manage the brand that you license as if it is your own. They have entrusted you and your company not to screw up their IP. You are only leasing it for the term of your contract; you aren’t buying it. 15. Apologize when you mess up and don’t claim that you are perfect. No one is perfect. You or your company will mess up eventually, and when you do, take responsibility for the problem and fix it. This will go a long way in building the relationship and keeping the license for renewals and winning new programs.

Summer 2011

LIMA Exchange

Charles Riotto

Welcome to Licensing Show Charles Riotto, president of the International Licensing Industry Merchandisers’ Association (LIMA), welcomes you to Licensing Show with a rundown of the week’s biggest events and a look behind the scenes at this year’s LIMA Awards nominees.

Our industry’s major event of the year, Licensing Show 2011, is just around the corner and all pre-show signs point to a plethora of opportunities, both business and social, to grow your licensing business to new heights. As the primary trade organization for the global licensing industry, LIMA will be front and center with a full range of services to enhance the show experience for all of our members. For starters, LIMA is hosting a multitude of educational opportunities at the show, peppering our traditional offerings with exciting new features. The lineup kicks off on Sunday, June 12, with the annual Retail Session and Tour. Bentonville, Ark.-based retail consultants Lisa Carver and Carol Spieckerman of newmarketbuilders will provide an overview of the current U.S. retail landscape during a luncheon session. Spieckerman will highlight retailers' new perspective on branding, what is driving their branding decisions, and which retailers are

100

Summer 2011

leading the charge. From there, it’s time to hop on the bus and let newmarketbuilders serve as a tour guide through a select group of major retailers. Our esteemed Licensing University program begins on Monday, June 13, offering a strategic look at major industry segments that will speak to licensing newcomers and veterans alike. The program covers an extensive variety of topics, including retail and distribution strategies, and how to stay ahead of consumer trends. Addressing the global industry, sessions will be held on how to expand licensing business internationally, as well as a course for international attendees on how to enter the U.S. market. An insightful keynote session will kick off the show, which runs June 14-16 at the Mandalay Bay Convention Center in Las Vegas. Rick Darling, president of LF USA, a subsidiary of Hong Kong-headquartered Li & Fung Limited, the multinational consumer goods export and logistics

group, will deliver the keynote address—“The New Real- and retailers in 2010. This year’s slate of awards candiities of the Global Consumer Product Marketplace... In- dates features 76 nominees representing Australia, Asia, flation, Consumption, & the Global Consumer”—on the Europe, and North and South America. Also during the opening morning of the show, at 8:45 a.m. Additional fea- ceremony we will pay tribute to our latest inductee into tures debuting this year include free group roundtables the Licensing Hall of Fame, Leigh Anne Brodsky, president on Wednesday morning, June 15. These sampler sessions of Nickelodeon Consumer Products. The industry will will introduce show attendees to LIMA’s education pro- honor Brodsky for her groundbreaking contributions to the grams, with brief presentations and Q&As on designated world of licensing and merchandising during the past 25 topics by industry leaders. After the first half-hour ses- years, as well as her admirable dedication to charitable sion, participants will shift to another table with a differ- endeavors on behalf of LIMA’s Charity of Choice. ent topic for the second. Since Brodsky introduced LIMA Discussions will range from working to the Children’s Brain Tumor Founwith retailers to tying licensing into dation in 2004, we have raised more event marketing. than $3.5 million to help eradicate Additionally, LIMA and Business pediatric brain and spinal cord tufor Social Responsibility, in collabomors and cancer. Initially, our dolration with Hasbro, NBC Universal, lars funded a variety of basic and The Walt Disney Company, and Time translational research grants. BeWarner, will also present a free ginning in 2008, however, LIMA’s seminar to promote greater undersupport has focused exclusively on standing of social and environmenthe Children’s Brain Tumor Tissue tal standards in the licensing Consortium, a unique project deindustry. Taking place on Monday, signed to accelerate the identificaJune 13, this seminar will focus on tion of causes and cures. It is clarifying the business value of socurrently the only research project cial and environmental compliance in the world solely dedicated to curand on practical steps that licen- Rick Darling, president of LF USA, will give ing the 100-plus types of pediatric the keynote address at Licensing Show. sors, licensees, and manufacturers brain and spinal cord tumors. Withcan take to improve adherence to social and environmen- out the efforts of the licensing industry, this research tal standards. would not be a reality. The highlight of LIMA’s networking activities at the In addition to all these activities, there will be more show will once again be the LIMA Opening Night Awards than 5,000 brands available for licensing in the exhibit Ceremony & Party. The ceremony will feature the presen- area, along with thousands of your current and future tation of our Licensing Excellence Awards, honoring the friends ready to see you. For more information, please significant achievements of global brands, companies, visit www.licensing.org or www.licensingexpo.com.

102

Summer 2011

Licensing Show 2011

Corporate Brands

MODA Strikes Licensing Deals for Tour de France, Lego, & More Licensing agency MODA partnered earlier this year with the newly formed entity Joe DiMaggio, LLC, which now controls the rights to the name, image, and likeness of Joe DiMaggio. MODA has developed a licensing brand positioning and strategy that will take this singularly iconic figure in the world of sports to products and services that extend from the fame and attributes of Joe DiMaggio. This year marks the 70th anniversary of Joe DiMaggio’s 56 game hitting streak (May 15 to July 17, 1941). Commemorative licensed products with a specially created logo will celebrate this unbroken record. A diverse range of licensed product categories are being developed in addition to more traditional categories, such as commemorative and collectibles with new licensees Topps and Majestic. Bushnell Outdoor Products, in sports optics and outdoor accessories for more than 50 years, is introducing a new line of high-end footwear by licensee BBC International. The new line targets men,

104

Summer 2011

women, and young adult outdoor enthusiasts. To promote the new line, BBC has signed on two outdoor shows, Family Traditions on the Sportsman Channel and Wild Outdoors on the Outdoor Channel, to feature the footwear by having talent wear Bushnell Footwear, and through product placement. Bushnell Footwear, initially available in 11 styles, will be distributed in sporting goods stores, department stores, specialty sport retailers, and footwear chains this fall. The Tour de France collection by Cycle Force Group/Messingschlager consists of bicycles, gear, and parts/accessories––more than 100 SKUs. Distribution of Tour de France bicycle, parts, and accessories hit the market last November in North America, United Kingdom, and Europe through IBD, sporting good stores, distributors, and online retailers. Products should be in big box retailers this fall. Taste of Home cooking magazine features user-generated content submitted by home cooks for home cooks. Its multi-platform food, cooking, and entertaining content is created and shared every day by more than 53 million engaged consumers. Categories available for Taste of Home licensing include cookware, bakeware, tools and gadgets, kitchen electrics, tabletop, storage, and food. UNICEF is the only global humanitarian organization with a sole commitment to improving the lives of children around the world, helping children survive and

thrive from childhood to adolescence. UNICEF is also the world’s leading charity greeting card brand. Categories available for UNICEF licensing worldwide include toys, books, first aid, video games, apparel, juvenile products, software, and eyewear. National Trust for Historic Preservation joins forces with Lego, adding Ludwig Mies van der Rohe’s Farnsworth House to Lego’s line of distinctive landmark building sets. Farnsworth House is an iconic expression of 20th century modernist architecture and a National Trust landmark building. The Lego Farnsworth House became available for purchase April 1 in Lego brand retail stores, LegoLand Stores, and online at http://shop.lego.com/. Toy stores, mass retail stores, bookstores, art galleries, museums, hotels, gifts souvenir shops, hobby shops, and online will follow this June. The product is designed for ages 12 and up and will include a content-rich booklet with facts and history of Farnsworth House. Licensing benefits America’s VetDogs by assisting this nonprofit organization’s ability to raise funds through the sale of licensed consumer products. The brand currently has deals with licensees Bil-Jac for dog treats and Vo-Toys for dog toys and accessories. Categories available for VetDogs licensing include dog apparel, grooming, accessories, crates and kennels, flea and tick, dog food, leashes and leads, and collars.

Licensing Show 2011

Corporate Brands

Discovery Expands Animal Planet and Discovery Expedition Discovery Communications and licensing agent The Joester Loria Group (JLG) plan to broaden Animal Planet’s existing pet and lifestyle programs, and develop new merchandising programs. One of the core focus areas for the Animal Planet licensing program during the next year will be publishing, building upon major deals signed recently, including a 30-title book series with Kingfisher (MacMillan Publishing). Pet product deals for toys, accessories, grooming, and odor removal have been signed on behalf of the Animal Planet brand with All for Paws, Fabuleash, and Pearlessence. Animal Planet’s lifestyle program continues to grow, from their longstanding direct-to-retail relationship with Toys “R” Us for various Animal Planet toys and

playsets to new licensees signed on in the footwear and accessory categories. Finally, the first Animal Planet Baby products will debut under their brand at retail this year. Going into the end of 2011 and into 2012, Discovery will continue to develop a multifaceted licensing program, includ-

ing digital media, toys, and publishing based on popular Discovery Channel programs, including Mythbusters . The 25th anniversary of Shark Week is also a priority as millions of fans prepare for the must-see event next year, the biggest Shark Week ever. Discovery Expedition offers consumers functional gear for all of life’s adventures whether in the backyard or around the world. Success with Discovery Expedition electronics at retailers, including Bed Bath & Beyond, Macy’s, JC Penney, and Kohl’s, has lead to retail and product expansion for this fall. New items include binoculars, telescopes, computer/iPad accessories, and outdoor lighting. A new travel accessory partner will be announced at the show.

Global Icons Brings Chuck E. Cheese and Crock-Pot to Vegas Brand licensing agency Global Icons is showcasing its portfolio of clients at the Licensing Show, including BMW, Captain Morgan, Cold Stone Creamery, Crock-Pot, Chuck E. Cheese’s, Dannon, Duraflame, Ford, Guinness, High Sierra, Hollywood, Horizon, Humvee, MINI, Mr. Coffee, Mrs. Fields, Oster, Silk, Spic and Span, Sunbeam, and TCBY. Global Icons will drive the Ford brands into new merchandising frontiers, focusing on building branded collections in the lifestyle and technical categories. Chuck E. Cheese’s had a great year in 2010 with the widely successful, interactive games for DS, Wii, iPhone, and iPad, by UFO Interactive, as well as the arcade-style toy games by NKOK. UFO is preparing to launch a sports-based interactive game

106

Summer 2011

this year. Chuck E. Cheese’s has also seen continued success from Schreiber’s snack cheese products, which have been retailing nationally at Walmart and regional grocers. Crock-Pot brand has entered into the food aisles at regional grocers with Harris Foods’ refrigerated ready-made meals, which roll out nationwide this year. Duraflame recently debuted electric fireplaces and heating appliances. Products are still going strong in home improvement (i.e.

Lowe’s), club, and various drug and grocery channels. Cold Stone Creamery is finishing a soonto-be-released hard candy line that replicates the Signature Creations ice cream flavors. The candy made its debut at the Sweets & Snacks Expo in May. Bennigan’s is launching heat-n-serve sandwiches, which are based on the chain’s popular menu items, this summer for retail and food service.

Licensing Show 2011

Corporate Brands

Licensing Link and White Castle Go to Vegas Licensing Show Licensing Link will showcase all of the brands it currently represents at the Licensing Show, with an emphasis on candy and food brands Dubble Bubble, Ferrara Pan, Dippin Dots, and White Castle. Dippin Dots continues to do well for the company as the make-your-own dots toys are selling in large numbers to toy and mass-market chains. Licensing Links will work with Flix to develop a line of Dippin Dots candy. Many new categories are being released for fall, including a line of lip balms with Added Extra’s. Dubble Bubble continues to do well in the apparel category, and Innovative Designs is now producing a full line of stationery and back-to-school items to hit Target in the fall. Nahui Ollin has had success selling handbags handmade from

DB wrappers to various boutiques and specialty retailers, including Dylan’s. Licensing Link also works with Ferrara Pan, whose candy brands include Red Hots, Lemonheads, Jaw Busters, Boston Baked Bean, and Atomic Fireball. Freeze, which produces licensed tops for the brands, has gotten Ferrara Pan into retailers including Kohl’s, JC Penney, Target, Walmart, and Hot Topic. Four Seasons designs has a line of Scratch-N-Sniff tees sold into mid-tier retailers around the U.S. Lotta Luv is producing Lemonhead and Red Hots lip balms and have sold into Kmart and Sears. Licensing Link looks to license more categories in fragrance, accessories, and brand extensions. For the White Castle fast-food chain, Licensing Link looks to partner with man-

ufacturers in the loungewear, accessory, and novelty toy categories. The company will also showcase Jolt Cola, Motel 6, Sea Monkeys, Made U Look, and its fashion brand With It.

Joester Loria Group Expands Media, Food, and Kids Properties Licensing agency The Joester Loria Group’s key initiatives for Discovery Communications this year include the Discovery Fit & Health network’s utilization of content and expertise to develop a line of health, wellness, and fitness products and solutions. Retailers including Bed Bath & Beyond, Macy’s, JC Penney, and Kohl’s will offer Discovery Expedition electronics with retail distribution and product expansions this fall. New items include binoculars, telescopes, computer and iPad accessories, outdoor lighting, and luggage. Top-rated series Mythbusters, Deadliest Catch , and River Monsters are being developed in categories that include gam-

108

Summer 2011

ing, apparel, books, and for River Monsters, a line of fishing gear and accessories. Joester Loria is working on extending the following food and beverage brands:

Johnsonville, SoBe, Pepsi, Mountain Dew, Amp, and Entenmann’s. The licensing agency’s work with automotive brand Car and Driver includes introducing functional automotive prod-

ucts in Q4 this year, such as jump-starters, invertors, 12-volt car accessories, and alternate power sources. Joester Loria also works with kids properties Pinkalicious and Baby Genius. New Pinkalicious products include paper party goods, fashion accessories, bedding and room décor from Franco, and interactive games from Gamemill. Baby Genius formed a new global master toy partnership with Jakks Pacific to develop and market preschool music-based electronic and classic toys. The line, set to launch in fall 2012, will be introduced at Fall Toy Preview. Other new licensed products include mobile apps and e-books.

Licensing Show 2011

Corporate Brands

IMC Licensing Develops Deals in Food, Eyewear, and Green IMC Licensing continues its leadership in food and beverage licensing. Dole Fruit Bars, frozen fruit bars by licensee Target Foods, are now available nationwide at retail grocery stores, mass merchandisers, and club stores. Working with fruit brand Sunkist, IMC launched a complete line of Sunkist ice cream, sherbet, and frozen dessert treats for all ages in North America during the first half of this year. IMC is partnering with Alacer Corp., which develops, manufactures, and markets dietary supplements and nutritionally enhanced products, to represent the Emergen-C brand of powdered drink mix. IMC expanded its relationship with FoodCause, Inc. to represent Grein, a patented all-natural meat alternative made primarily from whole grains.

Additionally, IMC worked on two additional licensing agreements for Borghese. These two new deals followed previous success with Borghese Eyewear by licensee Icon Eyewear for a line of reading glasses, sunglasses, and eyewear accessories launched in CVS locations nationwide. IMC developed deals in

2010 to launch Borghese bath and spa accessories and Borghese fashion top of bed and bath accessories. With the growing trend of sustainability, IMC has added TerraCycle, one of the fastest growing green companies in the world, to its list of clients. IMC will represent TerraCycle partners’ pre- and post-consumer packaging waste that is ready to be upcycled into new products. This packaging waste will be available to licensees to create new consumer products. IMC will also license the TerraCycle brand as an authentic green brand for use on other products made from environmentally friendly recycled materials. Potential licensing categories include back-to-school supplies, toys, house wares, pet accessories, fashion accessories, and home improvement products.

Jewel Branding & Licensing Crafts News Deals for Its Designers Jewel Branding & Licensing now has more than 150 licensees selling products for its designers since opening two and a half years ago. Jewel Branding works with each licensee in providing trend-conscious design and developing new product concepts and ideas that set them apart from their competition. Jewel Branding will now represent NoJo, a division of Crown Craft Infant Products, to extend the brand into new product categories, furthering the brand’s reach within the juvenile market. One of the first deals signed is an agreement with the Gift Wrap Company to expand the brand into stationery. Jewel Branding also signed a deal with CR Gibson to launch a complete line of kitchen and social stationery products for Jessie Steele, which currently sells aprons

110

Summer 2011

and kitchen textiles to more than 3,000 stores in 20 countries. The company will also extend Japan’s Belief, Inc. into handbags, accessories, and gift items. Izak has signed with H-R Planning for bags, iPhone cases, and accessories in addition to new licensees signed in Korea and Singapore for bags. Izak also launched a line of gift products with Pavilion Gift Company in January. Jewel Branding signed recent deals for the following brands: Simon & Kabuki with Cranston for a range of home textiles targeted to the high-end quilt market; Nel Whatmore with Pine Ridge Art, Trends International, and Pictura for stationery, calendars, and greeting cards; Piddix with Innovative Design for a line of stationery at Target and Portal Calendars; and Julie

Bluet with CR Gibson for scrapbooking, David Textiles for fabric by the yard, Ronnie Sellers for calendars, and Legacy Greetings, all available at retail this year.

Licensing Show 2011

Corporate Brands

Sikorsky Aircraft

Lifestyle Licensing Features Pampered Girls

LA Communications announced that Sikorsky Aircraft Corp. renewed its commitment to expand its licensing program by offering an array of new helicopter trademarks and artwork to its properties available for license. Sikorsky Aircraft Corporation, a subsidiary of United Technologies Corp., is the manufacturer and designer of the world’s most advanced helicopters for commercial and military use. The most notable addition to the program is the S-97 Raider, a helicopter design based on the X2 Technology demonstrator that recently surpassed the current helicopter speed record. Sikorsky also will license spectacular original artwork that illustrates its role in the history of rotary flight. The vast photo collection includes images of Igor Sikorsky, outfitted in his legendary fedora and overcoat, while at the controls of an early helicopter. New images of the formidable Black Hawk helicopter in some of its most heroic rescue operations are also represented in the collection. LA Communications is the exclusive consumer licensing agency for Sikorsky Aircraft Corporation and will consider a multitude of manufacturing categories, including apparel and accessories, giftware, publishing, toys, and video games. Sikorsky retains rights to market its trademarks.

Lifestyle Licensing International’s featured properties include Pampered Girls, Frou Frou, Flitterbyes, Kathleen Francour, and Gail Marie. Its Pampered Girls brand is powered by more than 60 global licensees and strategic alliances, including a rapidly growing chain of Pampered Girls retail stores located in Japan and China. The Pampered Girls brand is also enjoying great success with brand-building programs in India, Korea, Australia, Mexico, South America, Israel, Russia, and Europe. In the U.S., F.A.B. Starpoint is set to launch a major Pampered Girls product range that will include handbags and accessories, luggage, stationery, school supplies, backpacks, rainwear, umbrellas, and room décor. Lifestyle Licensing International will showcase Pampered Girls and all of their other brands in a 600 sq. ft. exhibit at this year’s Licensing Show at booth numbers 5316 and 5416.

112

Summer 2011

LMA Signs New Clients and Programs Lisa Marks Associates, Inc. (LMA) has developed licensing programs for four new clients who will be introduced at the Licensing Show. LMA has also signed on to develop the first-ever licensing programs for MoonPie and Sassy. LMA has signed on to develop licensing programs for Stark Raving Mod and Mayumi-Gumi by artist Sean D’Anconia. LMA is extending the licensing program for women’s humor property My Friend Ronnie, created by artist and writer Ronnie Walter, to include apparel and accessories, publishing, stationery, party goods, tabletop, and holiday. LMA continues to develop the C.F. Martin guitar brand with new deals in apparel with Joe Blow Tees, and publishing with BrownTrout Publishers; build the extensive Just Born brand program with new and extended apparel, toy, candy, and stationery deals for Peeps, Mike and Ike, and Hot Tamales; and extend the Warheads, Dum Dum Pops, and Smarties licensing programs with new key partners in food, apparel, electronics, and stationery categories. For Jack Squat, the latest from Billy Attinger’s Inconceivable Studios, Trau & Loevner continues to develop men’s apparel. Housewares International has signed on to create ceramic mugs, glass storage, melamine, and drinkware for all retail channels. Two additional art properties by Billy Attinger, From the Crib and Angel Babies, are in development with Engine 15 Media Group for animated series.

Licensing Show 2011

Corporate Brands

Brand Central Celebrates 10th Anniversary

WME Licensing

Back in spring 2001, Ross Misher began pounding out a business plan to create a “one stop shop” for the best corporate and entertainment brands to be represented by one agency: a “Brand Central.” This year, the company celebrates its 10th anniversary as one of the premiere global brand consultancies in the industry. The agency has provided comprehensive business solutions in the areas of brand extensions, brand creation, and brand acquisitions to some of the world’s most recognized brands. Their current client roster includes The Kellogg Company, Keebler, Dr. Pepper Snapple Group, Baja Fresh, Sillybrandz, Seventh Generation, Gaiam, Dr. Andrew Weil, Petit Tresor, Mark Burnett Productions, and ABC Networks. Brand Central will showcase its diverse portfolio of world class brands at Licensing Show. The agency welcomes potential licensees and retailers to its booth to learn about exciting licensing opportunities across multiple product categories.

Licensing veteran Rob Stone has joined WME licensing. As managing director, Stone will oversee WME’s stable of talent, including authors, nonscripted television programs, scripted television programs, concerts, musicians, Broadway plays, corporate brands, trademarks, designers, and gaming. Selected initial clients include BallUp, Bombpas & Parr, The Braxton Family, the knot, Lorena Garcia, Miss Universe, The World of Mr. Toast, Zane Lamprey’s Pleepleus, Miguel Paredes’s Pulgha, SU2C (Stand Up 2 Cancer), Sweetie Pie’s restaurant, The Little Prince, and William Morris Endeavour.

Brentwood Licensing

Guinness World Records’ New Games

At Licensing Show, Brentwood Licensing, LLC will show its portfolio of brands, including Peace Frogs, which is in 20 stores in 11 states; Rubes comics, which has appeared for more than 20 years in more than 400 newspapers; Dog is Good; Afro Sheen; Bumpkins; Love this Life; The Classic Motorcycle Magazine (U.S. only); The Art of Maze by Yonatan Frimer; and Save the Earth. Its artist portfolio includes Roland Crump, an award-winning retired Disney artist, and his collection of whimsical bugs; and Kawaii Not by Meghan Murphy, the edgy “cute not” and “I crap rainbows” collection. This is the first licensing show for Roland Crump. Domestic and International licensing opportunities are available.

Guinness World Records is harnessing the power of the extraordinary and translating it into entertainment content and licensing extensions this year. The company started the year with a deal to bring its imitable record-breaking content into schools through an agreement with Carson-Dellosa for a new line of workbooks. Thanks to a deal with Cedar Fair Entertainment, Guinness World Records Live!—a new business that takes the magic of record-breaking straight to the fingertips of the public—will appear at a number of North America’s top theme parks all summer long. Guinness World Records Challengers, a website that allows people to compete for records online, will enter the U.S. in a big way throughout the year and beyond with several key marketing partnerships eyed. Also, new versions of the Guinness World Records book and Guinness World Records Gamer’s Edition will make their way to the iPad, iPhone, and eReaders this fall.

114

Summer 2011

Licensing Show 2011

Corporate Brands

Only Inâ&#x20AC;&#x2122;s Lifestyle Brand Heads to New York City This Summer Only In, Inc.â&#x20AC;&#x2122;s destination- and lifestylethemed brand, Only In, will begin its foray into licensed brand extensions. The company has hired Sharon Bennett of Bennett Branding to spearhead this effort. Only In is a multi-platform, global lifestyle brand offering engaging ways for people to express themselves and their affinity with the people, places, and things that make their lives special. This includes celebrating unique aspects of favorite destinations, and translating that memorable feeling into merchandise, publications, entertainment, and community.

With hundreds of designs from cities and countries all across the globe, Only Inâ&#x20AC;&#x2122;s sophisticated iconic imagery can be personalized to a specific location, person, organization, or experience. The brand appeals to travelers, locals, and anyone with an affinity for a special place or destination and can also be customized to tourism enterprises, government organizations, corporations, and event planning. To launch the brand, Only In is starting with the New York City market, Only In New York, featuring proprietary gift,

collectible, and apparel merchandise in souvenir and gift stores later this summer. Only In is developing an integrated licensing and merchandise program with gift and collectibles, novelties, apparel, social expression, publishing, interactive, and entertainment.

Summer 2011

115

Licensing Show 2011

Corporate Brands

Beanstalk Forms Partnerships for Old Bay and Airheads Products Beanstalk and its division, Nancy Bailey & Associates, has been selected as the licensing agency of record for McCormick & Company’s Old Bay Seasoning Brand. The agency will leverage the Old Bay Seasoning experience into both food and nonfood categories to reinforce the brand’s vision of becoming the definitive seafood flavoring brand in the U.S. Beanstalk and Nancy Bailey & Associates will help Old Bay extend its unique blend of ingredients, iconic logo and packaging, recipes, and bright, bold artwork into multiple product categories, including fresh and frozen meals, sauces and marinades, as well as house wares, kitchen supplies, and apparel.

116

Summer 2011

Products are targeted to launch next year at mass retail, grocery, drug, convenience, and club stores. Old Bay is often associated with festive occasions, summertime entertaining, and culinary adventure. The brand’s unique flavor and quality ingredients are currently available in original and specialty blends, dry rubs, tartar and cocktail sauces, and seafood cake and batter mixes. Perfetti Van Melle USA formed a licensing partnership with Unilever, a leading consumer goods manufacturer, to extend its “out-of-control” fruity-flavored Airheads candy bars to tangy, chewy, and delicious ice pops under the Popsicle brand. Popsicle Airheads ice pops will leverage the brand’s unique flavor profiles and vibrant color palette to provide consumers with a delicious new way to experience the brand. Perfetti Van Melle and Unilever were brought together by Beanstalk and Seltzer Licensing Group, Airheads and Unilever’s exclusive licensing agencies, respectively. Beanstalk, a leading global brand licensing agency, also formed a partnership between its client Airheads and The Jel Sert Company to introduce Airheads Fruit Squeezers, a line of Airheads fruit flavored beverages. In its first foray into the beverage category, Airheads will pair its watermelon and blue raspberry flavors with Jel Sert’s colorful, squeezable packaging to offer a similarly irreverent brand experience as Airheads candy. Airheads Fruit Squeezers launched in April at select Walmart stores, with additional grocery, mass, and value channel retailers to follow.

Licensing Show 2011

Corporate Brands

bsp Features Auto, Entertainment, Consumer Packaged Goods Brand Sense Partners (bsp), the pioneering brand management and business development firm that incubates, acquires, and grows brands, has invigorated its presence as an exhibitor at Licensing Show through the unveiling of a refreshed booth. Stop by bsp’s booth to learn more about opportunities with its clients or to discuss becoming a new client. Armor All, in conjunction with bsp, has secured partners to develop and expand the Armor All product line by offering easyto-use car care products. Products currently sold at leading mass, warehouse, and auto retailers include automotive cleaning tools and accessories, wiper blades, garage flooring, automotive vacuums, and auto body restoration products. bsp is looking to secure partners for Armor All in the following categories: car covers, floor mats, seat covers, sun shades, and additional car accessories. For the Dodge brand, bsp continues to grow the top categories of die-cast, R/C, toy, and video and is looking to secure new partners in the following categories: apparel and accessories, interactive and mobile gaming, toys, and publishing. For Ram, bsp continues to grow top categories of R/C and toy, while pursuing new partners in the following categories: outdoor gear (camp, hunt, fish), tools and work wear, pet supplies, and gaming. Lionsgate Television and bsp teamed up to develop partnerships and lifestyle products inspired by the series Mad Men. bsp is looking to secure partners for Mad Men in the following categories: fashion accessories, home décor, furniture, stationery products, games, barware, and table top. bsp seeks to secure partners for the Chuck Norris Facts program and Jimi Hendrix. bsp continues to extend Marlon Brando’s name and likeness across a multitude of categories, having recently signed agreements with Renault Automotive, Liu Jo Jeans, and Dolce & Gabbana. bsp is looking to secure partners for Marlon Brando in the following categories: apparel, collectibles, food and beverage, gaming, leather, and paper goods. For its consumer packaged goods brands, bsp is extending the Beverly Hills Country Club brand worldwide and is currently securing licensing partners in the U.S., Europe, India, Asia, and South America in the following product categories: apparel, footwear, fashion accessories, swimwear, optical, fragrance and beauty, bedding and bath textiles, tabletop, home furnishings and décor, and furniture. Hamilton Beach’s thriving licensing program includes cook-

ware, kitchen tools and gadgets, kitchen electrics, and microwave ovens, as well as the recent addition of compact refrigerators, wine refrigerators, and stick vacuums. bsp is looking for qualified partners to continue to grow this licensing program in categories including cutlery, mid-size kitchen appliances, water coolers, and children’s role-play toys.

Summer 2011

117

Licensing Show 2011

Corporate Brands

Marathon Projects Showcases Kids In Need Foundation at Show Marathon Projects Ltd. will showcase two licensing properties at Licensing Show: The Kids In Need Foundation and PADI (Professional Association of Diving Instructors). The Kids In Need Foundation’s mission is to ensure that every child is prepared to learn and succeed by providing free school supplies nationally to American students most in need. The Kids in Need Foundation has distributed nearly $300 million in school supplies since its founding, directly ben-

efiting 1.6 million students and 100,000 teachers annually, and has awarded $1 million in grants to teachers. During the past few years, companies such as Target, Energizer, Innex, and Traveler’s Club have partnered with the Kids In Need Foundation by donating a portion of their sales to help fund these projects. PADI is the world's leading scuba diving training organization. PADI members, composed of more than 6,000 dive centers and resorts and 135,000 dive professionals worldwide, issue nearly a million certifications each year, making underwater

exploration and adventure accessible to the public while maintaining the highest industry standards for dive training, safety, and customer service. PADI licensing focuses include swimwear, swim goggles, beach apparel, beach bags, footwear, waterproof watches, scuba bags, luggage, waterproof cameras, dolls, action figures, Halloween costumes, video games, educational toys, health and beauty aids, boats, calendars, travel books, and lottery tickets. Visit booth D612 to learn how your company can become a licensee for these two properties.

Brandgenuity Develops Licensing Programs and Adds to Roster Brandgenuity’s Arm & Hammer licensing program expands with new licensees in strategic categories, including food storage, closet organization, laundry care, and pet products. With classic titles like Pink Panther enjoying success in apparel, bingo, and lottery, and Stargate hitting the jackpot with branded slot machines, Brandgenuity expands its relationship with MGM Studios, adding Rocky, the complete MGM library, and the MGM brand. The Pabst Brewing Company licensing pro-

118

Summer 2011

gram grew to more than 20 licensees with products in mass and specialty apparel, barware, collectibles, tailgating food, and more, featuring top brands Colt 45, Lone Star, Schlitz, Old Style, and Old Milwaukee. The Harlequin Enterprises licensing program has launched, leveraging vintage and current book cover art in puzzles, calendars, music compilations, and greeting cards. Products are coming to market this year for FX Networks’ It’s Always Sunny in Philadelphia in categories including apparel, books, and collectibles.

Kathy Davis, Laura Mercier, and Pella joined the Brandgenuity roster. Brandgenuity looks to extend Kathy Davis, a designer specializing in greeting cards and social expressions products, into new categories including crafting, kitchen textiles, bedding, home décor, domestics, gifts, and party goods. Brandgenuity also looks to pursue brand extensions for Laura Mercier, a department store brand of makeup and cosmetic products, and Pella Corporation, a leader in designing, manufacturing, and installing quality windows and doors. During Licensing Show, Brandgenuity will moderate a panel exploring royalty rates in “From Good to G’Rate: What Every Licensing Professional Should Know About Royalty Rates.”

Of Counsel

James Kipling

Territorial Matters Licensing 101, Part 61

W h er e a n d Ho w ? In granting rights for use of a licensed property, the licensor should invariably specify the territory with respect to which the grant is being made, and frequently limit the grant to specific channels of trade within that territory. Each of the parties has substantial interest in these provisions and often very different viewpoints. Te r r i t o r y In order to optimize revenue potential while minimizing downside risks, the licensor usually will tend toward a narrow territorial grant. A threshold consideration for the licensor is that its intellectual property rights in the property may be unprotectable in certain countries or adversely held in others. Granting rights without having cleared and established protection for its intellectual property could lead the licensor into costly international litigation and indemnity obligations, as well as risks to the integrity of licensor’s rights in the property itself. Another critical element in defining the territory is the licensor’s confidence that the licensee has the capability to exploit the rights granted throughout the entire territory. If such is not the case, there is little benefit to the licensor in making an expansive grant. The licensor would be better served to seek alternative licensees to service those countries in which this particular licensee has limited capability. For example, if a manufacturer markets its products well in North America, but has weak distribution in Europe, the property might be more effectively exploited in Europe by someone else. On the other hand, the licensee may feel that any distribution it makes outside North America can add incremental profit to its bottom line. In addition, the licensee may have concern that another manufacturer granted similar rights outside North America could pose a “gray market products” threat. This can be particularly problematic if goods licensed abroad are distributed in English language retail packaging. Regulations of the U.S. Customs Service give licensor the ability to combat the importation of infringing or counterfeit products, but in many cases legitimate licensed products intended for foreign markets can be imported to the detriment of the U.S. licensee. A reasonable compromise might permit the licensor to engage a European licensee but require it to take all available steps to prevent gray market imports.

C h a n n e l s o f Tr a d e As late as the 1980s, most license agreements included grants of territorial rights without further subdivision by distribution category. An early exception was created when savvy licensors realized that many products sold by general retailers could be supplemented effectively by upscale products distributed in specialty and gift channels. Subsequent expansion of this precedent has resulted in elaborate definitions of channels of trade that subdivide North American commerce into discrete segments. One motion picture studio has created an exhaustive listing of upward of 100 such segments. Licensors may have valid rationales for reserving certain channels. For example, distribution by street vendors or through adult video stores might tend to degrade the apparent value of property. However, if the licensor’s true interest is to reserve distribution channels for the purpose of granting parallel rights to other licensees, this should be determined by the licensee during the initial negotiation. Clearly, an understanding of the licensor’s intentions can affect the licensee’s evaluation of the rights it is being offered. In theory, identical licensed products based on the same property can appear at Walmart from one licensee, at Kroger from another, and at Barnes & Noble from a third. The downside of this sort of slicing and dicing to a licensor is that licensees may be reluctant to take a license for fear that even exclusive grants of rights to one of these channels can be diluted in this fashion. A wise licensor will require substantial differentiation among the licensed products of the competing licensees in order to minimize cannibalization. Us e it o r Lo se it As is the case in other aspects of a license negotiation, definitions of the territory and channels of trade can be contentious. A licensor who relents and makes a broad grant of rights to the licensee reasonably may couple that grant with “use it or lose it” language requiring defined minimum performance levels in various countries and/or market segments by specified deadlines. Failure of the licensee to meet these requirements could result in reversion of rights and, possibly, forfeiture of portions of the minimum royalty guaranty. As stated frequently in prior articles in this series, care and clarity in creating license agreements is essential for at least two important reasons: first, so that the parties will know what they can reasonably expect from one another; and second, if disputes arise, the disputes can be resolved promptly and with minimum disruption. James Kipling is a veteran of more than 20 years representing licensors and licensees in negotiating entertainment, sports, artwork, brand, invention, and technology agreements. He is Of Counsel with Wood, Herron & Evans LLP in Cincinnati, Ohio, and can be reached at (513) 241-2324, jkipling@whepatent.com. Copyright: ©2011 James M. Kipling All rights reserved.

Summer 2011

119

In the Studio

McHale Design

Going the Extra Mile to Get Your Products Noticed The design of your product helps it get on shelves—and helps it fly off. Maureen McHale, president of McHale design, gives you tips on how to transform your selling units into three dimensions in a 3-D crazy atmosphere.

As another summer blockbuster season approaches, all media is

across multiple endcaps, pallets, and oversized POP displays,

flooded with effects-laden films hungrily competing for the con-

presenting a multi-brand blitz, including products as varied as

sumer’s attention and dollar. These same licenses and franchises

soft drinks, DVDs, clothing, and toys. Once together, under the

started many months earlier making their appearances in a vastly

recognizable visual strength of the major motion picture logo or

unrelated sea of cereal boxes, Slurpee cups, T-shirts, and action

popular animated characters, this rag-tag group of disparate

figures. Only in the world of licensing can such a motley crew of

products gains the advantage of the overall license, realizing

dissimilar products join forces to form a super group of products,

their full marketing potential.

creating a unifying consumer call that is practically irresistible. Together, they are supremely more effective than alone. The concept of feature shop license programs are commonly seen everywhere from supermarkets to department stores. Every

It’s time to put Clark Kent into the phone booth, shake 007’s martini, and don Captain Jack’s sea-worthy hat. It’s the extra mile.

year, weeks before the Super Bowl, elaborate displays appear

As movies have become more sophisticated, with 3-D and

all over the local supermarket as a myriad of brands try to take

IMAX the norm, the feature shop displays must also become

advantage of the free publicity offered by the season. The most

more dynamic than ever before. A 40-foot pirate ship stocked

highly coveted, high-traffic space becomes the “feature shop,”

with DVDs and Jolly Roger accessories or a Disney Fairy envi-

where a larger-than-life, monumental display is erected—a party

ronment spanning several shelf units may be the centerpiece,

extravaganza, with stacks of beverages, piles of chips, and lay-

surrounded by four-way floor displays, pallets, endcaps, and dan-

ers of snacks. In most cases, these brands live under the same

glers, all playing vital parts in creating a spectacular draw. Just

parent company, but in many cases they aren’t usually marketed

watch the children; these over-the-top merchandisers prove ir-

and displayed together. A bottle of ketchup doesn’t possess the

resistible.

same buying appeal individually as it does when placed with other items under a gigantic Super Bowl display.

120

I T’ S T IM E T O T R A NS FO R M

3-D pre-visualization is an invaluable tool in creating awe-inspiring feature shops. Pre-visualization originated with photog-

The same concept is utilized effectively in the big-box stores,

raphers and filmmakers as a technique that served a dual

where the latest blockbuster or teen sensation is emblazoned

purpose: streamlining the creative process, while saving time

Summer 2011

DreamWorks used 3-D pre-visualization to show the retailer how their Merry Madagascar program would appear in-store.

and money. Like a sketch, it forced the artist to decide ahead of

fore packaging is even put into production. Products and display

time what was going to go where, helping to determine the best

merchandisers can be moved around to create the best possible

process to achieve the ideal result. Proportions, perspective, col-

balance, making it easy to find the most effective placement for

ors, lighting, and composition are just a few problems that can be

featured items. Different angles can be viewed and branding can

solved ahead of time.

be studied in a “real world” context as a fully stocked display

3-D graphic programs are used to create virtual mock-ups of

with multiple facings. The impact of the licensed movie or char-

packages, POP displays, and in-store furnishings. Similar to an ar-

acter graphics as well as the big picture effectiveness of all the

chitect’s scale models, these mock-ups visually demonstrate the

store elements together can be easily determined.

relationship and proportions between different packages and their surroundings.

Whether your license is next summer’s blockbuster or an evergreen favorite, creating a virtual feature shop, trend pod, or in-

Pre-viz can be as basic as a simple blocking out of the general

store destination with an illustrated image can help elevate your

sizes and shapes of packages and displays, providing a quick lay-

license to the next level, giving an edge against the competition

out view, or as sophisticated as an animated “flythrough” of a

so your products earn a coveted spot in your favorite store.

high resolution rendered environment, complete with detailed

Maureen McHale is the CEO and Chief Creative Officer of

images of product graphics. These images provide an excellent

McHale Design, Inc., the premier branding and design agency

visual representation for retailers to “see” how your license or

specializing in style guides, toy and home entertainment pack-

brand will look on shelf.

aging, and website design. Contact McHale Design at

Pre-viz allows for many marketing decisions to be made be-

www.mchaledesign.com or call 562.498.6717.

Summer 2011

121

Licensing Show 2011

Art & Publishing

Highlights for Children

Children’s publisher Highlights for Children will celebrate an exciting milestone, the 65th anniversary of the launch of its flagship magazine, Hi gh li ght s, at Licensing Show. To mark the occasion, Highlights for Children is inviting its current slate of licensing partners, including CSS Industries, Discovery Bay Games, Horizon Group USA, MoBaD Games, Ravensburger US, and Trends International, along with other show attendees to its booth (2058) for birthday cake at 4 p.m. on Tuesday, June 14. There will also be a drawing for three free Highlights magazine subscriptions. This landmark birthday comes at a time when the company is expanding its reach to children and families in new ways. Today, the generations who grew up reading Highlights, currently the most widely read children’s magazine in North America, will find that their children can enjoy quality Highlightsthemed play activities through stationery and social expression products from CSS Industries, board games and iPad apps from Discovery Bay Games, activity sets from Horizon, iPhone apps from MoBaD Games, jigsaw puzzles from Ravensburger, and calendars by Trends International.

122

Summer 2011

Penguin Young Readers Group Penguin Young Readers Group is excited to bring its collection of beloved brands to Licensing Show. Visit Booth No. 4044 for an up-front look at Penguin’s preschool character line based on classics and award-winning best-sellers including C or du ro y, Fr og gy, Ll am a Llam a, Sk i ppyj on J o ne s, Lad ybu g G ir l, O t is, and Co wg ir l. Each is available for toys, games, activities, soft goods, and domestic items. Penguin is excited to expand the Adu lt Mad Li bs brand, an outrageously fun property that will bring out your wild side, great for partygoers and irreverent giftgivers alike. The Mad Libs brand is perfect for games, stationery, accessories, and social expression. The hottest young adult novels blazing the bestseller lists are T h e C hr oni cle s o f V ladi m ir To d and Vam pi re Acade m y. To meet consumer demand, Penguin is seeking partnerships in accessories, apparel, and social expressions. The lifestyle brand inspired by the art of New York Times best-selling author and illustrator Jan Brett is debuting this year. Th e Wo r ld o f J an B re t t offers beautiful and unique designs ideal for seasonal and everyday living products selling in today’s gift market.

Kids-Did-It! Looking for New Licensees In their first book, Blue Cows & Happy Fruit: Discovering the Artist in Your Child, artist and designer Michelle and Glenn Abrams, compare 7-year-old Seth Goldberg’s beautiful “Blue Flower Vase” side by side with “Vase of Flowers” by Pablo Picasso. Glenn was fascinated with the quality of the student artwork on display in Michelle’s studio. In 1996, he created Kids-Did-It! Properties, a publishing and design studio that also licenses reproduction rights to its growing collection of images created by young children. In addition to learning the fundamentals of art and design, the artists represented in the collection earn royalties for the reproduction of their artwork. Since then, the kids’ art collection has grown to more than 500 images created by 130 young artists, and today, through various art licensing agreements, more than 88 children, ages 3 to 14, have been published on a variety of illustrated merchandise under their Kids-Did-It! Designs retail brand. The print category leads licensees with gift bags, calendars, cards, prints, posters, and books. Kids-Did-It! recently began high-quality digital distribution on Apple’s iPad platform with its Kids-Did-It! C o ok i e B o oki e C oo kboo k, a cookbook and picture book wrapped into one, teaching young readers the art of baking a good cookie. Opportunities for new art licensing partners including household categories featuring colorful images from its Kids-Did-It! Designs kids’ art collection.

Licensing Show 2011

Art & Publishing

Dena Designs Scores New Dena Home, Dena Baby Programs Dena Designs celebrates new licensees, products, book deals, and retail placement for the Dena Home and happi by Dena baby programs this year, while Dena Designs stationery and gift expands. Dena, the internationally acclaimed artist and lifestyle designer, kicked off this year with multiple Dena Home bedding products placed at leading retailers, including Bed Bath & Beyond and Hor-

chow. With strong sales Dena Home is aggressively launching a bevy of new product with industry leaders: Zrike for dinnerware and ceramics, Creative Bath for shower curtains and bath accessories, P/K Lifestyles for home décor fabrics, and Surya for rugs. Abrams publishing will release Dena’s home décor book next spring, showcasing her signature hand painting, decorating, and entertaining style.

Harris-Sachs, LLC Celebrates 20th Anniversary Steve Harris and Jim Sachs announced that the licensing conThe company looks forward to many years of continued th sulting business founded in 1991 has entered the 20 year of growth. providing superior services to their many clients in the consumer Inquiries: products industry. Steve Harris (908) 369-5358 From the beginning the company has stood for “Experience, SteveH@licenseadvisor.com Knowledge, and Integrity.” Both Jim and Steve are charter members Jim Sachs (215) 493-4984 JimS@licenseadvisor.com of the Licensing Industry Merchandisers Association. Steve was a Ken Harris (732) 297-6544 KenH@licenseadvisor.com two-time board member, and they are well known in the licensing community. Both partners are frequent seminar speakers and have been featured in numerous trade magazines. Over the years they have been proud to represent many leading manufacturers in the search, negotiation, marketing, Member Charter and acquisition of appropriate intellectual properties. Among the firm’s current clients are Brother Electronics, Lifetime Brands, Cranston Home, Lucks Food Decorating, Morgan Home, and other well-respected companies. In addition to Steve and Jim, Ken Harris is an important part of the team serving as senior account executive. Complete Licensing Services The company website is www.licenseadvisor.com, where all the company clients and properties they have Experience • Knowledge • Integrity assisted in securing are featured. There is also a section of 159 Brandon Court many serious and humorous photographs. Neshanic Station, NJ 08853 Another strong initiative involves a long-term client, Tel (908) 369-5358 Lucks Food Decorating, the company that changed the cake industry by creating Edible Image in the early 1990s, which has now used a similar technology for pizza. The Steve Harris steveh@licenseadvisor.com result is Pizza Prints, which feature licensed images such as Jim Sachs www.licenseadvisor.com Nickelodeon, NBA, Marvel, etc.

Harris - Sachs LLC

Summer 2011

123

Licensing Show 2011

Art & Publishing

King Features Exhibits Artists and Beetle Bailey in Las Vegas At Licensing Show, King Features will focus on licensing programs for its representation agreements with Brazilian pop culture artist Ro m e ro B ri t to, T he Ar t o f To d d ( G o l d m a n ), and award-winning illustrator Elw ood H. Sm ith. Additionally, King Features will unveil a major retail partner for its B ee t le Ba ile y property. Pop artist Romero Britto uses vibrant colors and bold patterns as a visual language of hope and happiness. He has been credited with the largest public art installation in Hyde Park history and exhibited at the Carrousel du Louvre at the Louvre Museum. Todd Goldman’s doodles, or art as some call it, can be seen everywhere. Whether on clothing, merchandise, books, paintings, or cartoons, Goldman’s

drawings seem to strike a chord with kids and adults alike. His simple cartoon style, combined with his irreverent adult humor, seems to bring out the inner child in all of us. Award-winning illustrator Elwood H. Smith has had his work published in Time, Newsweek, Forbes, New York Magazine, The Wall Street Journal, Sports Illustrated,

the Chicago Tribune, GQ, Esquire, and Playboy. In addition, his unique illustrations have graced the advertising campaigns of companies such as Sony, Blue Cross and Blue Shield of Texas, Pizza Hut, Cornell University, Bell Atlantic, AT&T, McDonalds, Saturn/GM, and Nabisco. Beetle Bailey, the world’s most famous Army private, has made the journey from classic comic strip to a high-concept, limited-edition menswear fashion line. Created by trendsetter Darren Romanelli, founder of prominent street wear brand Dr. Romanelli (DRx), The Real McCoys, the legendary Japanese authority on all things Americana, and King Features, the collaboration was unveiled at Project NY, the world’s premier contemporary fashion event.

Robin Zingone Showcases Four Art Brands at Licensing Show Robin Zingone will feature four brands available for licensing at Licensing Show. With a focus on design for women and girls each property targets a different audience and offers a comprehensive style guide for this year. The signature brand robin zingone features a distinctive color palette of images and patterns that are fresh, modern, and classic. From florals and geometrics to coastal and organic, the merchandising opportunities are ideal for home and garden, fashion and accessories, textiles, stationery, and paper goods. L o v e M e b y r o b i n z i n g o n e is the kawaii brand that targets the widest demographic of infant to adult. A collection of the cutest dogs and cats with accompanying icons and patterns have made their

124

Summer 2011

way onto backpacks, skins for electronic devices, scrapbooks, and stationery. G i r lyg i r l by r o bi n z i n go n e is a fabulous fashionista attracting tweens to young women. With her black hair, bright colors, and fashion-forward patterns, she has attracted the interest of an international audience. Debuting in Mexico on back-to-school products, followed by back to school in Ecuador, the property can also be found in the states on stationery, decorative napkins, and financial check packages. C o co m i m il u lu is a character brand ready for prime time. Designed to be hip enough for kids but sweet enough for moms, three sisters and their six friends come complete with character development, a style guide featuring each girl

with coordinating patterns, and a storybook outline. Designed to be sweet and sassy, the characters have appeared in scrapbooks for tweens, room décor, and stationery. Working as an art director, designer, and illustrator in New York, Robin Zingone discovered the licensing business while working on the Mattel Barbie style guides.

Licensing Show 2011

International

BBC Worldwide Returns to Vegas with Top Gear, Doctor Who BBC Worldwide returns to Las Vegas to showcase its strong portfolio of television properties at Licensing Show. The commercial arm of the BBC will be seeking new partners for key brands including Top Ge ar, Do cto r W ho, B BC E ar t h, Lo ne ly Pl ane t, I n t he Ni ght Gard e n, and C ha rli e a nd Lola, as it continues to expand internationally. Top Gear is an entertainment show about cars and broadcasts in more than 170 countries. Since January, 7.2 million viewers have tuned into BBC America to watch the show. The U.S. version on History attracted the youngest audience on the channel ever, reaching nearly 60 million viewers. Season two is currently in production and will debut later this year. Doctor Who merchandise has found favor with fans worldwide, further developing a strong following in the U.S. New licensees in the U.S. include BrownTrout (calendars), Quantum Mechanix (maquettes, high-end prop replicas, and novelties), Titan Merchandise (mini busts and urban vinyls), and Bif Bang Pow! (retro action figures, playsets, and bobble heads). Ripple Junction will continue as the exclusive licensee for Doctor Who junior and men’s apparel, and Panini began publishing a North American edition of the Doctor Who magazine, titled Doctor Who Insider, earlier this year. Underground Toys remains the master U.S. licensee for Doctor Who toys, bringing action figures, electronics and gifts to fans stateside. Products will continue to launch this year, with heightened activity around San Diego Comic-Con. BBC Earth brings inspirational content to new and established audiences around the globe. BBC Earth acts as a badge of quality for consumers across extraordinary images, remarkable stories, and new discoveries. Planet Earth and Life are just two of the many programs brought to the world by the BBC’s Natural History Unit. The Natural History Unit prides itself on constantly pushing the boundaries of wildlife filming using groundbreaking technology and

unmatched expertise to create stories audiences will never forget. Lonely Planet is the world’s No. 1 guidebook company with a 21 percent primary market share. In addition, Lonely Planet has seen almost 9 million mobile app downloads to date. Its magazine has an average monthly circulation of 55,000 copies in the UK, and seven regions, including France, Spain, Singapore, and India, launched the magazine last year, with another nine slated for this year. The first-ever range of Lonely Planetbranded luggage, travel accessories, and apparel will debut in the UK, U.S., and Australia next year from licensed partner, EBI. In the U.S. it’s D anci ng wi t h t he S t ars, in the UK it’s S t ri ct ly C om e D anci ng, but around the globe it’s one multi-awardwinning, prime-time entertainment dance phenomenon that has swept the world off its feet. In the Night Garden aims to captivate toddlers through a world of engaging characters, playful language, songs, rhymes, and music. It’s specifically designed as a shared viewing experience for parents/caregivers and their children as it embraces a pivotal moment in a child’s routine when settling down for sleep time. It was introduced in 2010 to American audiences on The Hub. The TV series is a prelude to an exciting range of licensed products including Hasbro toys (plush, play sets, and bath play), DVDs from BBC Video, and children’s sleepwear from GB Global. Charlie and Lola, produced by Tiger Aspect Productions and distributed by BBC Worldwide, is based on the books by noted British author Lauren Child. A new master toy partner has signed on and an exciting new range of plush, games, and art and crafts is launching early next year. Charlie and Lola’s Best Bestest Play continues its UK tour, entertaining more than 100,000 people to date. It also played from December to February at the Sydney Opera House, attracting more than 20,000 people, including Nicole Kidman and daughter Sunday.

Summer 2011

125

Licensing Show 2011

International

Giochi Preziosi Group Readies for Vegas with Puppy in My Pocket The Giochi Preziosi Group, founded by Enrico Preziosi in 1978, is one of the five largest players in the international toy industry, and proud licensor of two prestigious intellectual properties, G o r m i t i and P u p p y i n M y P o c k e t : A d v e n t u r e s i n P o c k e t v i l l e . The company plans to launch a new property next year. The group’s strong brands have motivated the development of its own consumer products division, which has seen the company exhibiting at the world’s foremost licensing shows—Las Vegas being a key date in the diary for this year. The prestigious boys’ property, Gormiti, has an impressive list of established licensees, with more opportunities emerging as the first series of the TV show launches in new territories, and the further second and third TV series (a total of 65 x 26’ episodes) carry on the adventures across the world. Gormiti has developed into a lucrative and durable brand, exposing its unique animated design and rich storyline content to thousands of quality products. The third TV series, The Neorganic Evolution, is already being broadcast in Italy and will hit screens on more major worldwide TV channels this fall. The new installment of the series sees inspiring new adventures as the Gormiti come to earth. With brand-new heroes, villains, and more gripping storylines, the Gormiti licensing program continues to flourish, adding to the success of its great range of toys and play sets. Last year’s Licensing Show saw the group showcase a brand new girls’ property, Puppy in My Pocket: Adventures

126

Summer 2011

in Pocketville, a 52 x 13’ TV series co-produced by Giochi Preziosi, Mondo TV, and MEG. The brand has created licensing opportunities across a growing number of worldwide territories, and has already proven to be a lucrative brand in its first year, securing numerous international licensing deals. The eagerly awaited cartoon series will hit the screens in EMEA this summer on Turner’s TV Channels, and will swiftly follow across the globe on many paid for and free-for-view channels. Licensing and merchandising for Puppy in My Pocket: Adventures in Pocketville is managed by the Giochi Preziosi Group in Europe, Africa, and Middle East and by Licensing Works! for the rest of the world. Licensing Show will also see the Giochi Preziosi Group showcase a brand new boys’ property for the first time, which comes directly from one of its wellknown toy brands and will feature a new 26 x 26’ TV series co-produced with Mondo TV. Graziano Delmaestro, Giochi Preziosi’s licensing director, says, “Our properties have seen tremendous growth over the past year, with an increasing number of prestigious partnerships across the globe. We are looking forward to revealing details about our new, exciting property, D i n o F r o z in Las Vegas, which we believe has a unique edge and great prospects for licensees.” Visit Preziosi Group in Las Vegas at booth No. 5427 or contact Giochi Preziosi Licensing.

Licensing Show 2011

International

Zinkia Entertainment Brings Pocoyo and Friends to Licensing Show Zinkia Entertainment returns to Licensing Show to unveil a newly restructured consumer products business for its global flagship multiplatform property, P o co yo, and to pursue new strategic partnerships across all major territories worldwide. The Pocoyo brand is based on the animated television series, airing in more than 150 countries across the globe, which brings children into the bright and exuberant world of Pocoyo, an inquisitive and fun-loving young boy and his animal friends Elly (the elephant), Pato (the duck), and Loula (his pet dog). Pocoyo launched in the U.S. in 2010 on television and at retail. Currently, the series airs on Nick Jr., Univision, and select PBS stations. Bandai Amer-

ica, master toy partner in the U.S., debuted a line of toys at Toys ”R” Us, and NCircle Entertainment unveiled a slate of DVDs. Zinkia, Bandai America, and NCircle Entertainment supported the brand in the first quarter 2011 with two national television-advertising campaigns: Primetime commercials ran on E! Entertainment during the Hollywood awards season, and February and April campaigns aired on channels across Dish network and Direct TV, including Toon Disney, Cartoon Network, and OWN. A new campaign is being developed for this year’s holiday season. Advance plans for the U.S. for 2012 and 2013 include new SKUs from Bandai America, the release of the

video game Pocoyo Circuits, and the Pocoyo theatrical 3-D feature release.

Grani & Partners Scores with Hello Kitty, Gormiti, Ben 10, more Ever since its establishment in 2002, originating from the meeting between Giocoplast Promotion’s experience in the sector and Giochi Preziosi Group, Grani & Partners has led the promotional sector in Italy. Bolstered by a young, enterprising management team and the backing of a solid group, Grani & Partners provides highly successful promotional items, premiums, and corporate gadgets produced under license, featuring favorite children’s characters from the world of entertainment (TV series, cartoons, films, music, and toys).

This business and the customer portfolio have expanded and developed over time, so much so that today, the Grani & Partners client list extends to nearly a hundred companies and groups that are major players in Italy and on the global stage. In addition to the Promo Division Italia, the company’s long-established division tasked with working closely with local clients, as regards the Grani & Partners foreign development, has always relied on its export division, in charge of FOB sales of various products in a number of countries worldwide.

The new International Trade Division, which was championed by CEO Enrico Grani, has a staff of seven, all with extensive experience in the sector of collectible and promotional products. It has a mandate to assist European customers in day-to-day business and at the same time, to expand the customer portfolio in Europe, while the Hong Kong-based export division remains the reference point for non-European customers. The exported products, all dedicated to the most popular children’s characters, such as H e l l o K i t t y, G o r m i t i , B e n 1 0 , M a r v e l , and W i n x , are the most popular collectible gadgets developed by the company for the promotional sector and the newsagent channel.

Summer 2011

127

Licensing Show 2011

International

ITV Expands Its Brands with Titanic Epic

Santoro’s Gorjuss

With TV audiences worldwide thriving and the demand for content on new platforms helping to build audience engagement with TV brands like never before, ITV has a wealth of UK and global properties perfect for extensive licensing opportunities. The much loved lifestyle show This Morning has undergone a creative rebrand that has been a hit with viewers and created a launch platform for a new range of homeware products. Loose Women continues to win fans and awards, with many new brand extensions launching during the next year. Co ronat ion Str ee t celebrated its 50th anniversary in the UK in December 2010 creating an unprecedented national celebration, growing audiences and product sales. New TV epic Ti tani c from writer Julian Fellowes will mark the centenary of the ship’s sinking next April. Already a hot pick internationally ITV predicts not only record viewers but significant home entertainment sales. Brand Al an Ti tc hm ars h comes to ITV with a new UK gardening show Lov e Yo ur Gar de n. H el l’s K i tch e n continues to burn strong in the U.S., with the finale delivering record numbers on Fox. Now in more than 340 TV territories globally this brand continues to increase in popularity. Also on fire is K it che n Ni ght m ar e s, now into season three, beating on-air competition and cooking up a strong entertainment fanbase. C om e Di ne Wi th Me, the popular format show where contestants host their own dinner party, continues to shine with new kitchen products and promotions being served up globally.

Santoro will showcase its new fine art brand G o r j u ss. Santoro has distribution in more than 50 countries. Gorjuss artworks feature stripy-socked female characters, wildlife, plants and natural imagery, and childhood toys. Products launched to date including greeting cards, postcards, premium quality gifts, fashion bags, accessories, and arts and crafts. Santoro is signing special partners to develop innovative products, reflecting the Gorjuss brand.

Hakan Canta

Big and Small Renewed for Third Season

Based in Istanbul, Hakan Canta will showcase a diverse range of products at Licensing Show. The company produces merchandise in back to school, fashion, travel, and sports sectors. Its merchandise is distributed across more than 50 countries in Europe, the Middle East, and North Africa. The company has licenses featuring NB A, Barbie, Bakug a n, Th e A m a zi n g S p i d er - M a n movie, D o r a t h e E xp l o r e r, H i g h Scho ol M us ical, S p on g e Bo b Squ ar ePant s, and H ello Kit ty.

Kindle Entertainment, an independent production company, has been commissioned to make a third series of the RTS award-winning CBeebies show B ig and Sm all. The show regularly achieves the highest rating in its timeslot and has been seen by 38 percent of all children in the UK aged 4-6. The series continues to enjoy support from the BAFTA award-winning CBeebies website, which attracts around 900,000 unique users every week. Big and Small is backed up by a strong licensing program, which features licensees including HarperCollins, Paper Projects, C & M Licensing, and Little Star Creations. The characters are featured regularly in pre-school magazines CBeebies Weekly and BBC Toybox Magazine. A related iPhone application has now sold more than 13,000 copies and is consistently in the top 20 apps on the iTunes Lifestyle chart. The announcement of the third series has been accompanied by a strengthening of Big and Small’s online presence. The show now has fan followings on the major social networks—Facebook, Twitter, and YouTube—as well as an online shop that sells the Big and Small licensee merchandise directly to consumers.

128

Summer 2011

The Voice Reaching Both Trade and Consumers

CONTACT: LAURIE SCHACHT OR JONATHAN SAMET ADVENTURE PUBLISHING GROUP 307 7TH AVENUE, SUITE 1601 NEW YORK, NY 10001 TEL: 212-575-4510 FAX: 212-575-4521 WWW.ADVENTUREPUB.COM

BrandCulture

Ken Markman

Why Is DTR So Successful? Take a Look at Your Phone Brands tell stories. A recent study shows how direct-to-retail licensing deals, combined with the power of the smartphone, can tell the consumer a story that leads to a purchase, says Ken Markman, president of KKM Global Strategies.

Technology is the muse to multi-channel connectivity. In its collective usage, it has become the 21st century’s first mass media and for the smartphone the most powerful direct-to-retail (DTR) facilitator. A recent study conducted by Chief Marketer brings a new meaning to DTR, a term almost exclusively defining a licensing transaction that now has become a seminal marketing strategy in support of a new consumer habit. The study, called "thinkmobile," by Ipsps OTX, sponsored by Google, explores how smartphones are habitually used in a consumer’s daily life, in the decision-making purchasing process, and as content providers. Smartphones are brand-message storytellers. Here are a few key findings. Smartphone Usage • Four in five (80%) smartphone users browse the web on their devices, and three fourths (75%) use mobile search. • 79% of respondents said they have used their smartphone for

130

Summer 2011

shopping activities, including finding store locations and checking local inventory (78 percent), acquiring product information (69 percent), contacting retailer (52 percent) and finding and using offers and discounts (48 percent). • The median spending on smartphone purchases in the previous year was $300 per shopper, with most of the buying happening in entertainment, electronics, and apparel. Retail Impact Smartphone Used to Help With Shopping Located a retailer 54% of smartphone users Compared prices to decide 49% of smartphone users Called a retailer 46% of smartphone users Read product info and reviews 44% of smartphone users Compared features 40% of smartphone users Looked for promotions/coupons 40% of smartphone users Searched store inventory 34% of smartphone users Used discount coupon on phone 28% of smartphone users

Used barcode scanner 26% of smartphone users Contacted retailer (not by phone) 22% of smartphone users Watched online video 21% of smartphone users (Source: Mobile Movement, Google/Ipsos OTX, April 2011) Smartphones are a part of multi-channel purchasing. Multi-channel Purchase Process with Smartphone Research on smartphone, then buy in store 67% Research on smartphone, visit store, buy online 23% Research on smartphone, visit store, buy on smartphone 15% Visit store, buy on smartphone 9% (Source: Mobile Movement, Google/Ipsos OTX, April 2011) The study found that 95 percent of smartphone users have looked for local information on their phones. After a local search, 77 percent said they were led to contact a local business, and 44 percent eventually purchased something. Action Taken By Local Information Seekers (% of Local Content Seekers) Contacted a business 77% Called 61% Visited 59% Visited website 54% Made a purchase 44% Online 22% In store 36% (Source: Mobile Movement, Google/Ipsos OTX, April 2011) More than one third (33 percent) of those conducting a local mobile search say when they act on mobile information they do so immediately or within a few hours of getting those search results, and 14 percent say they act within a day. That’s what I call, “Just on time shopping!” Timely Action Taken by Local Information Seekers Immediately 36% Within a few hours 39% Within a day 14% Within a few days 8% Within a week 2% Within a few weeks 1% (Source: Mobile Movement, Google/Ipsos OTX, April 2011) BrandCulture: Storytelling The thread-through of text messaging, photo sharing, geo-local social

media, couponing, QR (quick response) codes, interactive kiosks, and immersive content to include visual retail mapping of both interiors and exteriors of stores has brought merchandising to a new (cognitive) science of color, sight, and sound. The smartphone is today’s shaman, acting as our brand storyteller. It delivers information and personal opinion. The combination is every chief marketing officer’s brand stewardship elixir for success. As the Hopi proverb says, “The one who tells the story rules the world.” But this ubiquitous storyteller is doing something else besides enlightening each of us or uniting us across groups and borders of all kinds. The constant messages have created a pattern of information that, in itself, tells us something more fundamental about whomever or whatever we are reading, believing, or endorsing. That pattern is our own cultural story. It’s intoxicating because it’s all about me, and you. As a result, the story becomes fabled folklore and eventually through myth creation, a brand. Brands are no longer just products or services. Today, defined by thousands of Facebook posts or tweets, everything is a brand. Books. Politicians. Celebrities. Neighborhoods. Sports. Schools. With their collective messages and constant communication, digital natives are marketing their lives and the brands they have created for themselves to everyone around them, including family, friends, and strangers. This is giving them a new tool with which to place themselves in the world, as it provides us a way to assess anyone or anything around us with a quick nod to whether we like that brand or we don’t. Brand messages have stripped literature, classic music, theater, advertising, and motion pictures as the authority to set not just an American identity but also a global cultural agenda. Brands are the primary value of life and a primary tool of communication. Consumers with smartphones are not just messengers, they are the message; they are brands themselves, avatars with their own stories and symbols, out there for anyone to accept or reject with every post or tweet. Just as the development of the written word changed the way we think, so will digital communication change our thoughts and our very consciousness. As human beings, we think in stories, but today, powered by technology, our narrative stories have become brands. So, we live as brands. We communicate as brands. We will, for sure, start to think in brands. Welcome to BrandCulture. Keep your friends close and your smartphone even closer. Ken Markman may be reached at Ken.markman@kkmbrands.com

Summer 2011

131

Celebrity Licensing

Allan Grafman & Sean F. Kane

Money for Nothing, or Smart Business Move? Ten things you need to know about licensing celebrity likenesses, from attorneys Allan Grafman and Sean F. Kane

Can you make more money with a celebrity likeness endorsing your product? The licensing industry has found that the answer is often yes. If done effectively, a very big “YES.” This is largely due to the fact that celebrities aid in building awareness and consideration among consumers, key steps to building sales. But following this path also has pitfalls. As such, this article seeks to discuss 10 important concepts to contemplate when considering working with a celebrity. 1. Names and Likenesses As a general rule, the name, image, or likeness of a living person, not necessarily just a celebrity, cannot be used for commercial purpose without his/her written consent. Some jurisdictions have extended the coverage to provide additional protection to such elements as signature, voice, mannerisms, or even expressions. In the majority of states, this “right of publicity” provides the celebrity the right to control the commercial use of the above rights. 2. Federal Framework While the United States does not have a national right of publicity legislation, that doesn’t mean there aren’t federal statutes applicable to commercial use of celebrity rights. As discussed below, a celebrity may seek trademark protection which provides coverage under federal statute. Moreover, Section 43(a) of the Lanham Act covering “unfair competition” arguably supports an action alleging false source of goods or false endorsement if an unauthorized use of a celebrity’s name, image, or likeness leads to a likelihood of confusion that the celebrity is endorsing the product or service. 3. States’ Rights Unauthorized use of a celebrity’s name, likeness, or image potentially vi-

132

Summer 2011

olates his/her right of publicity, which is currently recognized in 31 states. These states protect the right of publicity by statute, common law, or a combination of both. As each state’s common law or statute evolved separately there are often significant differences in coverage developed. Specifically, New York and California, the key states for rights of publicity due to the number of celebrities residing there, protect different rights and are diametrically opposed on whether these rights extend beyond death, with New York not recognizing these rights beyond death. 4. Real People or Not The vast majority of states only recognize a protectable right of publicity for a natural person and do not extend coverage to non-human persons such as corporations. But a few cases that have extended coverage to certain collections of individuals like musical groups. 5. Impersonators If the general public is deceived into believing that it is seeing or hearing an actual celebrity, when in fact it is an impersonator, the celebrity may have a cause of action. Additionally, if a fictional character portrays the readily identifiable persona of a celebrity, a right of publicity claim may also exist. Impersonators clearly identified as such receive a level of protection. 6. Are They Dead? The law concerning the use of the name, image, or likeness of a deceased celebrity is an area of legal uncertainty. Currently, statutes in California, Florida, Illinois, Indiana, Kentucky, Nevada, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, and Washington specifically provide some level of protection for publicity rights after death. These states provide protection that gives the celebrity’s estate or his/her heirs

the right to control the commercial use of the name, image, or likeness for a period from 20 to 100 years following the celebrity’s death. A particular celebrity’s coverage under this right may depend on a number of factors, including whether the celebrity commercialized his/her name, image, or likeness while still alive. 7. Trademarks vs. Rights of Publicity A celebrity who is in the business of commercializing his/her rights of publicity may arguably assert that said name, image, or likeness is subject to trademark protection. Therefore, it is conceivable that a celebrity who uses his/her name, likeness, or image in connection with a product or service may file for and obtain a registered trademark from the United States Patent and Trademark Office. Therefore, any unauthorized use would constitute parallel infringement of both the celebrity’s relevant trademark and right of publicity. 8. Fair Use or Commercial Use While the First Amendment supports the right to portray people with great latitude, it is not exhaustive. The doctrine of “fair use” is a copyright concept that allows for certain non-infringing uses of covered content even without the owners’ consent. Generally, the test of allowable fair use involves determining the extent of the use and whether usage is for commercial purposes. The commercial purposes factor is often the one that dooms the majority of attempts at unauthorized use. Parody may constitute fair use, however, regardless of whether it is done for commercial purposes. Depending on the jurisdiction, certain specific commercial uses of a celebrity’s name, image, or likeness, in connection with the news, public affairs, or other identified uses are not violative of a right of publicity. 9. When You Do Not Need a License It is also possible to commercially use a celebrity’s name, likeness, or image if the use is significantly “transformative.” This legal concept pits First Amendment interests against a celebrity’s right to control the commercial use of his/her name, image, and likeness. For illustrative purposes, California’s test states that “when artistic expression takes the form of a literal depiction or imitation of a celebrity for commercial gain,” without the inclusion of other significant expression, the use is an infringement and not “transformative.” But if the celebrity image is merely one of the “raw materials from which an original work is synthesized,” the work is transformative and subject to First Amendment protection. While sounding straightforward, even the decisions of the California courts are not consistent. In 2006 a California Court of Appeal held in Kirby v. Sega that a video game’s depiction of pop singer Deee-

Lite in a fanciful outer space setting is a transformative use protected by the First Amendment. Earlier this year, however, the California Court of Appeal in No Doubt v. Activision held that a video game’s depiction of pop singer Gwen Stefani (actually being used under a license) in a fanciful outer space setting singing songs she would never perform is not transformative, and therefore receives no First Amendment protection. The inconsistency between those two rulings for the same court demonstrates the difficulty of relying on a transformative use defense. 10. Don’t Do This Don’t get charged with infringement or stuck paying for what becomes a worthless celebrity license. Infringement actions are expensive and penalties can be considerable. Therefore, it is very important to obtain a written license that specifically details what celebrity rights are available for use and how they may be used. Additionally, by their natures, celebrities are people and subject to the same foibles and misfortunes as everyone else. We have seen numerous recent examples of celebrity meltdowns that have cut short formerly promising careers. Therefore, a licensor would do well to consider in advance an exit strategy for the possible circumstances of when a celebrity licensor tarnishes his/her persona or otherwise causes a loss of public favor. One method to do this is to insist on a “morals clause” that will allow for termination of the agreement if the celebrity engages in any criminal acts or other conduct involving moral turpitude. As a “morals clause” termination can be contested, a unilateral right to terminate provides more protection. Conclusion The real value in a celebrity endorsement comes from obtaining it the right way. Licensing the rights from a celebrity or his/her estate will avoid the very real possibility of expensive infringement litigation. Moreover, be cognizant of what specific rights you will need and how you will seek to use them to ensure the proper scope and breadth of the license. That said, if you are planning to move forward without obtaining a license on “fair use” grounds or through the use of a celebrity impersonator, you would do well to retain an experienced licensing attorney to ensure that you are in full compliance with these limited defenses.

Allan Grafman monetizes content and raises capital for owners of intellectual property. As President of All Media Ventures he advises investors, content owners and licensing companies. He can be reached at AllanGrafman@AllMediaVentures.com. Sean F. Kane is a counsel at Pillsbury Winthrop Shaw Pittman LLP and a member of the firm’s Social Media, Entertainment & Technology Group. Mr. Kane can be reached at 212-858-1453 or sean.kane@pillsburylaw.com.

Summer 2011

133

Directory of Properties, Products and Services

THE LICENSING BOOK, Summer 2011 “THE LICENSING BOOK” (ISSN-0741-0107) is published bi-monthly, except for the June issue, 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. © 2011 Adventure Publishing Group, Inc ®. All rights reserved. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopying, recording any information storage and retrieval system, without permission in writing from the publisher. Printed in U.S.A. Subscription rates: $48 per year. THE LICENSING BOOK, THE LICENSING BOOK INTERNATIONAL, WORLDWIDE LICENSING and the “WLE” design, are trademarks and service marks of Adventure Publishing Group, Inc.® registered in the United States Patent & Trademark Office Postmaster: Send address changes to THE LICENSING BOOK, c/o Adventure Publishing Group, PO Box 47703 Plymouth, MN 55447.

A&E Television Networks..............................................................101 American Greetings ......................................................................55 BBC Worldwide ..........................................................................136 BioWorld......................................................................................77 Bravado International ....................................................................65 Brentwood Licensing ....................................................................111 C3 Entertainment ..........................................................................67 CBS..............................................................................................19 Classic Media .............................................................................6, 7 Delta Children’s Products ..............................................................87s Elvis Presley Enterprises .................................................................69 Fremantle Media Licensing Worldwide............................................61 Gateway Licensing ..............................................................117, 134 Giochi Preziosi..............................................................................29 Grani & Partners ...........................................................................31 GM Licensing......................................................................116, 134 Harris Sachs .......................................................................123, 134 Hasbro ...................................................................................15, 17 HBO ............................................................................................59 Interactive Toy Concepts.................................................................75 iTV Studios ...................................................................................57 Live Nation .................................................................................8, 9 M&Ms ........................................................................................107 Mattel...........................................................................................23 MODA International ....................................................................109 Nancy Bailey ..............................................................40, 43, 45, 47

134

Spring 2011

Nickelodeon ..........................................................................1,2, 21 Paradox Entertainment ..................................................................81 Paramount ....................................................................................53 Penguin Putman ................................................................35, 37, 39 PlaSmart.....................................................................................113 Rasta Imposta ...............................................................................85 Rubies Costume Co........................................................................89 Saban Brands .............................................................................4, 5 Sakar ...........................................................................................83 Sesame Workshop ........................................................................27 SG Footwear ..............................................................................103 Skechers.......................................................................................63 Sony ............................................................................................49 Sqwishland ...................................................................................33 Striker Entertainment .....................................................................79 Stupid Factory Studios ...................................................................73 The Joester Loria Group ...............................................................105 The Toy Insider ..............................................................................91 Topsville......................................................................................115 Trau & Loevner............................................................................134 Ubisoft .........................................................................................51 Ugly Doll ......................................................................................93 Universal Studios...........................................................................11 Warner Bros. Consumer Products .............................................11, 13 Yoe Studios .................................................................................135 Zinkia Entertainment......................................................................71