Summer 2013

Summer 2013

Departments 18 Editor’s Point 20 Stat Shot 22 News 26 LIMA Update 27 LIMA UK 48 Inside Retail 50 Toy Licensing 56 Hot Shots: Cake Boss Elizabeth Bakacs, Vice President of Licensing, Discovery Communications 58 Hot Shots: Activision Ashley Maidy, Head of Global Licensing & Partnerships, Activision Inc. 85 Hot Shots: Warner Bros.

Dave Hedrick, Senior Vice President of Global Promotions & Branded Foods, Warner Bros.

Consumer Products 94 Winning Partnerships 96 Corporate Corner: Beanstalk Beanstalk adds notable new clients to its roster and launches its new digital licensing division.

Volume 30, NumbeR 3

Features 28

Technology = Licensing Explosion

The world is moving faster and becoming more technology-driven, but just as technology grows, so will the platform for licensing. Brand owners and licensing representatives have to step up the pace, look forward, and prepare.

34

State of the Industry Q&A

We chatted with property and brand owners, consumer products manufacturers, licensing agents, and other industry experts about the latest hot topics swirling around the industry.

59

Licensing Expo 2013

Our annual look at the industry’s biggest event, with nearly 50 pages of coverage of the character and entertainment, corporate branding, and art and publishing sectors.

16 • The Licensing Book

113 Licensing 101 Jim Sachs discusses how to market products to licensors.

114 Experiential Branding Ted Mininni unveils the secret to making deeper connections for your brand.

117 Marketing Memo Philip Graves explores licensing and the unconscious mind and how to look beyond sales and marketing to build a better brand.

130 Toys and TV: Superman 132 TIA Perspectives 134 Brand Licensing in Emerging Markets 136 Licensing Administration 138 Building a Lasting Property 140 Of Counsel 142 Directory

Summer 2013

EDITOR’S POINT

LICENSINGBOOK

®

THE

Cover Art by Hyperdesign Inc.

www.licensingbook.com

This year marks the 30th anniversary of The Licensing Book. The licensing industry has evolved quite a bit over the past 30 years, from an industry still in its infancy to a sophisticated system that involves complex legal agreements, global property launches, dozens—or sometimes hundreds—of licensing partners, and the need for international business units to keep tabs on all of it.

As Jim Kipling mentions in our State of the Industry Q&A (beginning on page 34), when Kenner negotiated the first Star Wars trilogy deal in the late ’70s, they created the concept of the master toy and game license. Kipling notes that the agreement was a mere 12 pages long, as compared to the second Star Wars trilogy agreement negotiated on behalf of Hasbro in 1997, which exceeded 250 pages.

As you can imagine, the dollars involved were quite different as well. What hasn’t changed is the fact that Star Wars remains one of the top licensed properties in the world.

Nowadays, licensing rights are sliced and diced to a sometimes comical degree. On the one hand, this offers more opportunity to more manufacturers when an A-list property is at stake, but it also causes licensees to compete with one another for retail shelf space.

Thirty years ago, much of the properties up for grabs were TV and movie properties, and there was a big trend toward Saturday morning TV programs based on licensed merchandise and toy and video game characters. The Smurfs, The Snorks, Care Bears, Pac-Man,

18 • The Licensing Book

Q*bert, Inspector Gadget, Peanuts, and Strawberry Shortcake were featured prominently in our inaugural issue. This is still the case, so it shouldn’t come as such a surprise that some of the hottest properties today are based on video games and apps. Super Mario, Tetris, and Sonic the Hedgehog are perennial favorites—and are now considered classic evergreens—though they didn’t even exist when the first issue of The Licensing Book went to press. Skylanders, a much newer video game property from Activision Publishing, has blown the industry out of the water, exceeding $1 billion in retail sales, including games and figures.

What would have been a bit shocking, I think, is if we could have taken a glimpse at a typical 2013 consumer. The concept of apps, tablet computers, smartphones, (or even personal computers), and online shopping would have had our heads spinning. It would seem so overwhelming and unreal. (I would reference Back to the Future and its predictions here, but even that wasn’t released until 1985.)

However, I don’t think Angry Birds and its success would have been unfathomable.

As we ponder how licensing has become exceedingly more complicated, it’s clear that some things never change. What’s more difficult to consider is how things will be different over the course of the next 30 years. Let’s meet in 2043 to review. Until then, we at The Licensing Book will do our best to keep you up to speed!

••••

ADVENTURE PUBLISHING GROUP INC.® Vol. 30, No. 3, Summer 2013 President/Co-Publisher Laurie Schacht laurieschacht@aol.com

Co-Publisher Jonathan Samet jsamet@adventurepub.com

Editorial Director Jackie Breyer jbreyer@adventurepub.com

Senior Editor Loren Moreno lmoreno@adventurepub.com

Associate Editor Marissa DiBartolo mdibartolo@adventurepub.com

Assistant Editors Christine Duhaime cduhaime@adventurepub.com

Ali Mierzejewski amierzejewski@adventurepub.com

Editorial Assistant Kara Faulk kfaulk@adventurepub.com

Production Director Anthony K. Guardiola aguardiola@adventurepub.com

Controller/Office Manager Robert Forde rforde@adventurepub.com ADVENTURE PUBLISHING GROUP, INC.® 307 SEVENTH AVE., ROOM 1601 NEW YORK, NY 10001 TELEPHONE: (212) 575-4510; FAX: (212) 575-4521

Stat•Shot

S TAT S HOT Top 10 Licensed Products, January to April, 2013

Spain

Product

Manufacturer

2

Monster High Travel Scaris

Mattel

4

Six Sobres Invizimals Cards

6

1

3

Furby Asst. (Hot)

UK

Hasbro

Monster High Asst.

Moshi Monsters Moshling Figures

Vivid Imaginations

3

LeapPad Explorer Tablet

LeapFrog

5

Moshi Monsters Blind Bag Asst.

Vivid Imaginations

7

LeapFrog Explorer Game Asst.

LeapFrog

9

Cars 2 Character Clipstrip Asst.

Mattel

Panini

4

Monsuno Starter Pack 1 Core

Giochi Preziosi

6

8

Monster High Favorites

Mattel

8

10

Monster High Doll Party Dress

5

Monster High Fiesta Divina

7

Mattel

Hot Wheels 72 Cars

9

Mattel

Cars Asst., Cars 2

Mattel Mattel

Manufacturer

1

2

Mattel

Product

10

Lego Minifigures

Furby Asst. (Hot and Cool) Monster High Doll Asst.

Lego

Hasbro Mattel

InnoTab

VTech

TMNT Basic Figure Asst.

Giochi Preziosi

Top Toy Properties* Across Europe in 2012 UK

1

Moshi Monsters

3

Lego City

2

4

Star Wars

Monster High

Disney/Pixar Cars

Mickey & Friends

Lego City

Barbie

Barbie

Helly Kitty & Friends

Lego City

Spider-Man

VTech Baby

Beyblade

9

Disney/Pixar Cars

Barbie

Monster High

Disney/Pixar Cars

Hello Kitty & Friends

VTech Baby

Lego Technic

Peppa Pig

Spider-Man

Monster High

Nerf

Disney/Pixar Cars Source: The NPD Group

20 • The Licensing Book

Star Wars

Disney Princess

Spain

Barbie

Hello Kitty & Friends

7

10

Playmobil

Italy

Star Wars

Disney Princess

8

Playmobil

Germany

Barbie

5 6

France

Playmobil Nancy

Lego Duplo

Mickey & Friends

Disney/Pixar Cars

Filly

Cicciobello

Nenuco

Lego Ninjago

Disney Princess Hot Wheels

Baby Clementoni

Spider-Man Star Wars

Hello Kitty & Friends

*a property includes brand and licensed product sales

Summer 2013

Licensing News BRAND LICENSING

Toy Vets Dead Serious About Zombies Toy veterans John Lee and Jerry Welch are bringing a fresh perspective on the “zombie phenomenon” to market. Yarn Zombies, a new brand of “mojo,” is on trend with the teen and terminally adolescent markets who have, as Lee puts it, “way too much serious shizzle to worry about every day and could use a little (yarn) zombieinspired mojo.”

Yarn Zombies Inc. was formed as a passionate collaboration of seasoned professionals who are committed to bringing the Yarn Zombies story and their potent designs to market. Spearheaded by Lee, who founded Learning Curve Toys, Callaway Digital Arts, and Bambini Partners, and Welch, former owner of FAO Schwarz and CEO of Zany Brainy and the Right Start, this engaging property strives to define the real Zombie phenomenon and provide the antidote to the Zombie disease. The brand launches with JUJUz, knitted totems created by Yarn Zombies to ward off all manner of evil and bad luck, from licensee Kids Preferred LLC, hitting retail this fall.

TV LICENSING

SMC Expands Program for H2O: Just Add Water SMC Entertainment Group Inc. (SMC) has expanded the licensing program for H2O: Just Add Water, a TV series that airs on Teen Nick. The series is now available as a DVD at all major retailers and digital content providers by Cinedigm.

SMC recently signed new U.S. licensees for the brand, including Goodie Two Sleeves for T-shirts, beach bags, and pillows; California Costume Collection Inc. for children’s Halloween costumes and wigs in the U.S. and Canada; and Zazzle for a variety of customizable products including hoodies, T-shirts, skateboards, posters, mugs, and postage stamps for the U.S. and Canada.

Targeting girls ages 6 to 12, H2O: Just Add Water is a live-action TV series about three teenage girls facing typical teen problems every day, but with an added twist: the girls are mermaids with incredible water powers. The consumer products program is currently licensed in more than 140 international territories with plans to continue to expand into new markets.

22 • The Licensing Book

CHARACTER LICENSING

Rubie’s Pet Shop Boutique Offers Licensed Pet Costumes and Accessories Rubie’s Pet Shop Boutique, a division of Rubie’s Costume Co. Inc., will offer a new line of costumes and accessories for pets. Designed for the fashion-forward pet, the collection features hundreds of non-licensed and licensed costumes, including Star Wars, Batman, Superman, Hello Kitty, Ghostbusters, Elvis, and Wizard of Oz. The selection of products also extends beyond Halloween to other special occasions, such as Easter, Independence Day, St. Patrick’s Day, and Christmas. In addition, the line of accessories includes wigs, hats, tutus, bandanas, wings, and hair bows.

BRAND LICENSING

Beanstalk to Build Licensing Programs for Blogs Beanstalk has partnered with digital strategy and execution agency Digital Brand Architects (DBA) to build a licensing program for two of its digital brands: Bag Snob and Mrs. Lilien.

Snob Essentials, a new fashion brand from Snob Global Media’s blog Bag Snob, will capitalize on the Snobs’ keen eye for designer details and authority in high-end fashion across multiple categories, including handbags, denim, and footwear. The global collection will offer fashion and accessories developed with highquality, sophisticated, functional designs and eye-catching details at more affordable price points.

Mrs. Lilien’s licensing program will leverage her colorful and exuberant personality, expertise in styling, and her ability to turn the mundane into the magical with just a few simple changes.

Blending humor, a touch of luxury, and a retro sensibility fused with the latest trends and innovations, Mrs. Lilien will offer a collection of products that transform every home, party, and fashion product from ordinary into colorful and extraordinary. Beanstalk will pursue partners for social expressions, gifts, novelties, tabletop items, barware, domestic arts, and other home décor and fashion-oriented categories for Mrs. Lilien.

Summer 2013

Licensing News ENTERTAINMENT LICENSING

WBCP, CBS Partner for Co-Branded Merchandise Warner Bros. and CBS Consumer Products are launching an exclusive, limited-edition, co-branded collection of The Big Bang Theory/Star Trek merchandise that includes Leonard, Sheldon, Howard, and Raj’s preferred version of “Rock, Paper, Scissors, Lizard, Spock”-themed product, as well as T-shirts and Funko bobbleheads featuring the characters in Starfleet uniforms. This new collection of merchandise will be available exclusively at Hot Topic stores nationwide and at HotTopic.com until July. Hot Topic will also be the exclusive home to a new, limited-edition The Big Bang Theory/DC Comics T-shirt, featuring Leonard, Sheldon, Howard, and Raj in their favorite DC Comics superhero costumes.

VIDEO GAME LICENSING

BRAND LICENSING

Sega, Nintendo Enter Exclusive Partnership for Sonic the Hedgehog

Universal Launches Largest Global Campaign for Despicable Me 2

Sega of America Inc. and Sega Europe Ltd. have formed an exclusive partnership with Nintendo of America Inc. and Nintendo of Europe GmbH for the Sonic the Hedgehog franchise.

The new agreement will make Nintendo consoles the No. 1 destination for Sonic gaming over the next three titles, with more details of the individual games being revealed in the coming weeks.

Sonic the Hedgehog first appeared as a video game character in June 1991 and instantly became an icon for a generation of gamers.

Defined by his super-fast speed and cool attitude, Sonic has sold more than 75 million video games and smartphone apps worldwide. Sega’s iconic blue blur has also had success in many licensed areas, such as toys, apparel, comics, and animation.

Universal Partnerships & Licensing (UP&L) will roll out its largest global campaign, for the July 3 release of Despicable Me 2. The sequel to 2010’s Despicable Me marks Universal’s fourth collaboration with Chris Meledandri’s Illumination Entertainment since the company was formed in 2007.

In an unprecedented campaign, UP&L has secured more than $254 million in total global media value from key marketing partners, including McDonald’s, Progressive, General Mills, Frito-Lay, U.S. Department of Health and Human Services (HHS) and the Ad Council, Chiquita Brands, UHU, Land O’Frost, and Topps, along with more than 100 licensing and international promotional partners. Global licensing partners include Gameloft, Thinkway Toys, and Hasbro.

Get the latest licensing industry news delivered straight to your inbox each week for free! Subscribe to The Licensing Book’s Total Licensing Report by sending an email to subscribe@adventurepub.com, and add that address to your address book to ensure delivery.

For up-to-the-minute news, follow The Licensing Book on Twitter: twitter.com/LicensingBook, “like” The Licensing Book on Facebook: facebook.com/LicensingBook, and visit our blog at www.licensingbook.com.

24 • The Licensing Book

TV LICENSING

TCG Partners with Entertainment One for Peppa Pig Products TCG has entered into a licensing partnership with Entertainment One to manufacture, distribute, and market a new line of puzzles and activities featuring Peppa Pig in North America. The line is expected to launch at mass-market, toy, drug, and online retailers in August. The new product line, targeting preschoolers, will include three 24-piece jigsaw puzzles, three 48-piece jigsaw puzzles, and Magnetic Creations.

The animated series follows the adventures of Peppa Pig, who lives with her brother George, Mummy Pig, and Daddy Pig, and airs on Nick Jr. in the U.S.

Summer 2013

LIMA Update

Change, and How to Keep Up with It

by Martin Brochstein, senior vice president of industry relations and information, Licensing Industry Merchandisers’ Association (LIMA)

I

n the 15 years or so in which I’ve been directly involved in the licensing business on an everyday basis—whether as a journalist or in my current role with LIMA—the business has changed both subtly and profoundly. Licensing is a business that is always undergoing some kind of transformation; that’s to be expected, since the popular culture never stands still.

A couple of weeks ago, a friend in the midst of a presentation began one too many sentences with the phrase, “I may be dating myself,” when citing film scenes to illustrate a point. As I pointed out to him later, “If you feel the need to say ‘I may be dating myself’ three times in a row, then you are by definition dating yourself.” (I should add that I, of course, knew all the films he was citing.)

This is a business of constant reinvention; if a company isn’t keeping its eye on the pulse of market dynamics and shifting business and consumer patterns, it’s destined to fall behind the competition.

Perhaps the biggest change is the sheer speed of the business on all levels. Kids of all ages fall in and out of love with properties at hyperspeed. Speed to market is increasingly becoming a key point of differentiation among licensees, so that when opportunities arise unexpectedly, there’s a way to leverage them. A big piece of the sports market is built around “hot market” opportunities—a record being set, the rise of such phenomena as Lin-sanity

26 • The Licensing Book

and so on. And, of course, retailers are using their instantaneous access to POS data, along with evermore sophisticated modeling techniques, to quickly (in some cases too quickly, as far as I’m concerned) determine whether an item or line is succeeding, or should be removed from the shelf.

As this is being written, results of the LIMA Annual Licensing Business Survey—which tracks business in the U.S. and Canada—are being compiled and analyzed. They’ll be released during Licensing Expo 2013 in Las Vegas. While we don’t yet know the results for 2012, it’s safe to say that the current marketplace represents a continuing recovery from the depths of the economic malaise that gripped all consumer businesses during the latter part of the prior decade.

But it’s a constant challenge to understand ongoing market shifts if you’re going to participate in this ongoing recovery. For example, when the global economy began to tank in the first decade of this century, one of the sturdiest pillars of any entertainment licensing program was bound to be console-based packaged video games. These represented big guarantees and, in many cases, steady or even explosive sales.

With rare exception, that’s not the case today. So much of the gaming business has migrated into casual games played on mobile devices at a tenth of the price points of those console games of yescontinued on page 139

Summer 2013

LIMA UK

Seeing the Digital Writing on the Virtual Wall

by Kelvyn Gardner, managing director of Licensing Industry Merchandisers’ Association (LIMA) UK

O

nce upon a time there was a device called the Apple Newton. It was a tablet computer that would (supposedly) recognise your handwriting, allowing you to have a smart PDA (personal digital assistant). The Newton didn’t fall far enough from the competition tree to succeed— not unrelated to the fact that it didn’t work very well.

Then there was the UK firm, Psion, which made PDAs in the form of miniature handheld computers.

With their instant boot-up and color screens when they got to the Psion Series 5, Bill Gates once declared that Psion was the only technology company that he feared.

There are no Newtons around these days and no Psions either. However, Psion’s in-house operating system, Symbian, was the basis of the first smartphones from the likes of Nokia as well as Apple, which begat the iPhone and iPad. Such smartphones and tablets are tearing up the media industry, and, along with it, the licensing industry. Where would we be now if Psion had succeeded longer term with its hardware? Probably not far from where we are now given that Psion engendered what we see today.

In licensing terms, this is an epic wave of change for the media platforms on which we view our entertainment. PCs and laptops have been around for 20 years, yet it's only in the past two or three that licensed IP has developed on this platform—largely utilizing PCs for Internet access. The result has been

Summer 2013

that some properties are now major licensed brands, with Moshi Monsters the biggest and best British example to date.

Yet, no sooner had Moshi and others begun to break through (disproving the long-cherished opinion that no kids’ property would ever succeed without a solid TV platform) than the PC platform itself started to look shaky.

If TV held sway for 50 years, it looks like PCs and Macs managed to hang on for less than five. Mind Candy and others, notwithstanding the current robust health of their businesses based on PC internet access, have seen the digital writing on the virtual wall. Major investment is being poured into different worlds for access from tablets and yet more for access from smartphones and the other handheld devices rushing into the tech space.

How will this affect consumer products? On one level, the traditional core requirement for any successful licensing program, awareness, can only be enhanced. If Angry Birds starts as a phone app, then evolves into PC-accessed short animations, followed by a big-screen movie, the ubiquity of this crossmedia presence should further aid the licensing results. But, if PCs held sway for such a short period, how can we be sure that our new-fangled tablets will be a vital and powerful medium for licensed IP for very long?

Well, clearly there's an explosion in sales. Accordcontinued on page 139

The Licensing Book • 27

State of the Industry

Technology = Licensing Explosion

The world is moving faster and becoming more technology-driven, but just as technology grows, so will the platform for licensing. Brand owners and licensing representatives have to step up the pace, look forward, and prepare.

Weston Anson, chairman, CONSOR

by Weston Anson, Patricia Hooper, and Jemma Samala, CONSOR Corp.

icensing has been one the most exciting activities of the marketing mix because more brand owners are leveraging the value of their brand in areas outside their current existence. Technology is the newest and fastest evolving platform for licensing.

It’s resulting in a licensing explosion.

Ten years ago, how did you shop? You likely drove to a shopping mall or spent the day walking from store to store to look around, maybe went to a few similar retail establishments, looked around some more, found something you liked, got in line, and paid for it with your credit card or a check. Once you paid for your merchandise, you were handed a receipt and your bags by a friendly sales associate, who sent you off with a smile and farewell, “Hope to see you again soon.”

How do you shop now? Via technology. You go online, type in the product name or category using a search engine, maybe do a little product research, compare features and prices, possibly send website links to friends for their opinion, and then make a purchase decision. Add the item to your cart, pay using a debit or credit card, and receive an automated receipt in your email.

Technological progress is responsible for nearly half of the growth of the U.S. over the past 10 years, and is one of the principle driving forces in the licensing industry today. The development and use of new technology has played a major role in determining patterns of licensing, and has also worked against

L

Patricia Hooper, director of new business and licensing, CONSOR

Jemma Samala, research analyst, CONSOR

28 • The Licensing Book

global financial setbacks in recent years.

Technology Has Changed the Way We Do Business

There is no question that technology has accelerated the pace of the licensing industry and the need for licensing agents and consultants to adapt. Building a brand through licensing, and consideration of the number of impressions that a brand owner will receive through licensing, has changed entirely with new technology and with exponential speed at the retailer’s end.

One dramatic sign of how the retail business has changed is the reduced number of licensed SKUs found on store shelves and the reduced amount of time those items are kept on shelves. The fast pace of technology’s impact on retail not only includes sales and distribution, but buying and stocking. Orders are not only placed, but fulfilled within much shorter time frames.

Retailers have their own e-commerce sites. Consumers often use these sites hand-in-hand with their in-person shopping experiences. The advent of “individualized marketing mailers,” made possible by new technologies, has also impacted the buying experience. For example, the personal sales associate, who at one time developed a relationship with their customer, personally telephoned you when an item arrived that she or he knew you would love. Instead, consumers are instantly segregated by their purchase history and receive email notices that are specifically

Summer 2013

designed to trigger an emotional urge to “buy now before they’re gone.” Today, shoppers are lured into making their purchase decisions even before the merchandise reaches the store, with many items and discounts only available online.

Technology-driven retail channels are the basic platform on which the licensing industry will breathe. It’s easy to understand why some industry observers speculate that technology will make the salesperson obsolete, but it’s not the salesperson that’s becoming obsolete, it’s the old sales techniques themselves. Technological trends are reshaping the sales process, and ultimately, reshaping licensing from the contract phase to distribution and sales.

brands in the U.S. depends largely on our ability to trade, retain market shares, and offer high-quality products, processes, and services, while maintaining economic growth and meeting the ever-changing standard of living. Brand owners are continuously seeking solutions to the evolving business environment and challenge of gaining mindshare and market penetration.

One of the best strategies is co-branding. Co-branding with technological products is a growing trend. Cobranding is enticing to brand owners because it not only includes the strongest elements of their products, but combines them with the best complementary brands to offer a new product or service. Ideally, the potential worth of the whole is greater than the sum of the individual partners. Co-branding also presents a powerful argument when it comes to evaluating the results in consumer purchasing decisions, and the additional exposure to a new audience through an established loyal consumer base of the co-brand technology partner. Other examples of co-branding include Facebook, Twitter, Nokia, Microsoft, Apple, Kindle, Google, UPS, and Amazon.

Co-branding with technology-focused products is itself a growing trend. For example, the number of smartphones, e-readers, and laptop case styles available for purchase continues to increase. iPhone cases are now a fashion accessory item. Techno-fashionistas have their basic black cover for the office, rhinestone bling for the evening, and a case with a favorite sports team for a weekend game. Kids love having their favorite characters on their phone; and yes, children in preschool not only know how to use a cellphone, iPod, iPad, or iPhone, but many have their own phone by the time they begin kindergarten. Technology-based licenses are an inspiration for new license categories and services.

As retailers strategically plan shelf space and reduce the number of items on the shelf, they look to established brands for stability. The economic strength of

ogy as a way to focus on products, which will have a growing consumer base. Too many times, what looks good on the drawing board to a designer may not be as

Technology changes every facet of licensing Technology = Online Technology = Apps Technology = Square Reader Technology = Colorways/Design by Phone Technology = 44 Countries Technology = Pads not Paper Technology = Virtual Celebrities Technology = Cash Flow Management by Retailers Technology = Better SKU Management Technology = Individualized Marketing Technology = Changing Retail Platforms Technology = Social Media Turmoil Technology = Faster Consumer Feedback Technology = Driving of Social Media Technology = Instant Pricing, Selling, Shipping, Returns Technology = Personalized Marketing Technology = Tracking Everything We Do Technology = Digitization Technology = Co-Branding Technology = Instant Products Technology = Pop Ups Technology = Brand Hashtags

The New Co-Branding = Brands + New Adapt or Die Brands and manufacturers should embrace technolTechnology Partners

Summer 2013

The Licensing Book • 29

State of the Industry

In May, Target, along with Deutsch Inc., constructed a life-size dollhouse in Grand Central Station.

appealing to the target consumer. Traditionally, retailers didn’t know a product didn’t work until the sales reports arrived months after initial distribution.

Today, some brands are using technology before products are even produced. A good example is Vans Custom Culture, where high school students are invited to submit artwork for a shoe customization contest. Schools can win funds for their art program and the chance for their winning shoe designs to be produced and sold in retail stores. Additionally, consumers can go online or in store and build their own shoes by picking out their favorite style, color, and pattern. This example of a brand owner using technology to create products prior to production is an efficient way to sell and promote to consumers.

Technology brings a win-win component to both the seller and buyer, hence the licensor and licensee.

Technology Dictates Distribution

Technology has changed the way we shop and the way products are distributed. Distribution channels are direct-to-consumer. With the growing use of online shopping, not only are products sent directly to the consumer, but instantly to other geographic marketplaces.

Technology has created a frantic race to lean how

30 • The Licensing Book

best to reach the “Millennials” or “Generation Z.” The U.S. is still looked upon favorably by most countries for its fast-paced evolution in the licensing industry, and is where other countries turn to see the latest licensing trends. “Made in the USA” communicates an unmistakable message that is still favored among other countries.

See a product, click a product, buy a product. “Generation Z,” has grown up in an atmosphere of instant gratification, and their shopping styles reflect that attitude. The marketing “impression” has been transformed into codes. Many brand owners are now working with TV shows to have QR codes and other brand hashtags shown that will communicate the appropriate message. And with the growing numbers of shows being watched on laptops or personal readers, viewers can scroll over to the links to make a purchase instantly.

Pop-ups continue to grow as a licensing strategy.

They serve as a temporary and direct distribution channel. One recent example of the ultimate pop-up was created by Target. Target created a life-sized dollhouse in the middle of New York’s Grand Central Terminal. The 1,600-square-foot pop-up was put together in 54 hours and includes a patio and lawn area. The dollhouse displayed approximately 4,000 products associated with each room. The project was innovative and reached out to the 500,000 daily terminal visitors.

Consider a glimpse into our future, with the implementation of holograms; it will take 3-D marketing to a whole new level. Brand owners and licensing reps have to step up the pace, look forward, and prepare. The world is going to move faster and become more detailed, but just as technology grows, so will the platform for licensing.

The increasing use of e-commerce in our global marketplace will make the licensing industry grow exponentially—our job will just include knowing how to utilize technology to our advantage.

Technology Drives Social Media; Use It

A growing complaint from brand owners and licensees is that technology has led to an increasing

Summer 2013

State of the Industry

number of unlicensed products being sold in the open and website marketplaces. This global problem has led to an increased number of task forces from such groups as the International Trademark Association (INTA) and International Anti-Counterfeiting Coalition (IACC). But as we blame technology for the rising amount of unlicensed products, we should learn to use technology to a brand’s and licensor’s benefit. Technology is used to help brand owners and make their followers aware of the problem with counterfeit products and can be used for both enforcement training and confiscation.

• Social media—Everyone uses social media in their day-to-day life. Every brand owner should be using social media to their advantage by creating anti-counterfeiting campaigns and using social media to disseminate information. Besides using Facebook friends to “like” products, or “pinning” style sheets to your Pinterest boards, using social media platforms to educate consumers about the differences between authentic licensed products and unlicensed products is an avenue not typically utilized by brand owners or license representatives. It is well known that educating consumers regarding the pitfalls and dangers of counterfeit products and unlicensed products is the first step in preventing and minimizing the sale of counterfeit products.

• Unreal Campaign—INTA’s Unreal Campaign is a relatively new campaign that is designed to educate teens about counterfeit products and get them involved in preventing the sale of counterfeit products. Partnering with the campaign and reaching out to local high

32 • The Licensing Book

schools targets education efforts to a younger, impressionable demographic. With Twitter, Instagram, and Vine as a few of the leading modes of communication between teens, utilizing campaigns such as the Unreal Campaign, and educating and encouraging communication through these vehicles, is a proactive position in preventing counterfeit activity.

Technology Is the New Global Licensing Marketplace

Technology has affected the global licensing marketplace, because we are living in a global marketplace.

Technology and accessibility is everywhere. From the bustling coffee shop in New York City to Amazon outposts, access to the rest of the world is available everywhere.

Technology Forces Choices

What do we take from all of this? Technology brings more than a fast-paced, detailed licensing industry—it brings choices, not only to the consumer, but to the brand owner, licensees, and the licensing agent/consultant who stands in a position to direct the move. The power of technology is as close as the palm of our hand and in every element of our life. Choice is a powerful tool—take control.

Weston Anson is the co-founder and chairman of CONSOR Intellectual Asset Management, which has been a leader in intellectual property issues for more than 25 years. Anson is active in all of the major international trademark and intellectual property associations as a speaker and an officer.

Patricia Hooper is the director of new business and licensing for CONSOR. She has more than 20 years of experience managing intellectual property assets for international and domestic brands.

Jemma Samala is a research analyst with CONSOR, focusing on licensing and litigation matters. Samala is also the online director and writes the CONSOR blogs.

Summer 2013

State of the Industry

Maura Regan

Kate Dwyer

Sesame Workshop

The Coca-Cola Company

SVP and General Manager, Global Consumer Products,

Group Director, Worldwide Licensing,

What is the biggest challenge the licensing industry is currently facing?

The biggest challenge the licensing industry is facing remains retail consolidation and contraction, though I remain optimistic as I see retailers doubling down to create great in-store experiences and unique product offerings to excite and engage new customers. Additionally, the shift in consumer behavior in line with growth in e-tailing is positive.

How are you approaching retail differently than you have in the past?

We are placing more emphasis on omni-channel retailing and ensuring we have a comprehensive plan in place for new partnerships.

Our goal is to engage consumers, immerse them in the brand experience, and tell a great story along the way through a multitude of channels. The best example of this to date is our strategic alliance with HSN.

How important is social media to the success of your properties?

Social media keeps us connected with the entire Sesame family. We have content on Facebook, Twitter, Tumblr, and Pinterest.

In fact, Cookie Monster has over 1 million fans on Facebook. It’s a great way to extend the Sesame experience.

Are you seeing direct-to-retail (DTR) as a growth area for the licensing industry?

As retailers continue to look for new ways to differentiate their brand, they are partnering with properties and designers to bring exclusive products to market. Accordingly, we have seen significant growth in our DTR partnerships over the last three to four years as more and more retailers adopt this model.

How are you utilizing multiple entertainment platforms to expand awareness and increase consumer engagement with your properties?

Our content and distribution teams help ensure that Sesame Street is where children and their families are. In addition to television, we also have an award-winning website, apps, e-books, and video on demand. If families are engaging with it, we’re there.

What types of properties are on the rise and what trends are leading to this?

Obviously, consumers of all ages are drawn to new and interactive technology. Sesame Workshop has partnered with Qualcomm and created an app called Big Bird’s Words, available this year. This app will feature the first-ever use of Qualcomm Vuforia augmented reality (AR) platform’s text-recognition capability.

Within the app, children are guided, via the use of a virtual “wordoscope,” to search for and find new words in their environment, making vocabulary-building a fun and interactive experience.

34 • The Licensing Book

How do you keep a classic property fresh for today’s consumer?

We constantly reinvent the brand by partnering with designers, illustrators, and artists to keep the brand contemporary and relevant.

One such example is our partnership with Nigo, one of the most influential designers for the youth market. We collaborated with him to develop a capsule collection of apparel and accessories earlier this year. Another example is our new Coca-Cola Heritage Glass that was designed by famed industrial designer Thomas Meyerhoffer. We have a number of other partners in the pipeline that we will continue to tap into throughout the balance of the year.

Do you incorporate consumer feedback into your licensing program?

We leverage a number of different avenues to secure feedback and assess our performance, including social media, custom research, and sell-through data. This information guides future decision-making around products and partnerships. We also subscribe to a number of forecasting services to ensure that we stay on the pulse of emerging trends and have the ability to act quickly and implement new business practices.

Summer 2013

Greg Economos SVP, Global Consumer Products,

Sony Pictures Entertainment Do you collaborate with retailers for exclusive partnerships? Is this something you plan to expand on in the future?

This is a growing trend, especially with the more fashion-forward properties where we offer exclusive designs and programs with retailers for a specific demographic. We definitely plan on increasing this activity in the future with the right partners.

What is the biggest challenge the licensing industry is currently facing?

I think the biggest challenge is the many properties that are being offered to retailers and the shrinking shelf space allocated to certain types of properties.

Retailers are fairly risk averse and want to go with a tried and true character license that has maximum exposure and longevity in the marketplace.

What is your strategy for approaching international and emerging markets?

International and emerging markets are a big source of growth in character licensing. I recently attended the licensing show in Moscow and you could feel the industry embracing film and television character licensing. The characters have to be relevant, and culturally they cannot have any sort of negative connotation.

Are you seeing DTR as a growth area for the licensing industry?

DTRs are certainly a growth area for those properties that may not have built into franchise status yet, but still have potential for a retailer to “own” that brand from the ground floor.

Summer 2013

Debra Joester President and CEO,

The Joester Loria Group What types of properties are on the rise and what trends are leading to this?

Based on market trends, we expect celebrity licensing, Disney Junior preschool brands, superheroes, and food and restaurant brand extensions to be among the fastest growing industry segments. There are some interesting niches that have emerged in the U.S., including “redneck” TV series such as Duck Dynasty and Honey Boo Boo, and with retailers such as Walmart supporting series and personalities that offer redneck humor, we anticipate growth in 2014.

The celebrity segment, including celebrity chefs and reality stars, are benefiting from the extraordinary media attention that connects fans and allows the celebrities to establish their brands. Disney Junior preschool has great shows that are dominating preschool licensing, and we anticipate this trend will only get stronger as more homes gain access to Disney Junior Food and restaurant brand extensions continue to gain steam, offering consumers the flavor profiles and brands they love.

Are you seeing DTR as a growth area for the licensing industry?

DTR continues to be a very important part of the mix, as are retail exclusives. Drug chains are increasingly looking for exclusive or DTR-branded opportunities and pop-up exclusives, and DTRs with international fashion retailers is also showing continued growth.

Can you give an example of a licensing program that “breaks the mold?” How or why did it work?

Angry Birds is a great example of a licensing program that broke the mold.

The property surprised many industry experts who didn’t predict the longevity of the program’s appeal and the enormous sales volume. The property was not launched with a strategic retail plan or other initiatives that are often utilized to set the stage for a successful rollout. In the case of Angry Birds, the pervasive presence of product across all retail channels seemed to fuel interest and demand. Enormous credit goes to Rovio for keeping the property relevant and refreshed with collaborations and media stunts that kept Angry Birds in the news over the past three years. More importantly, new apps continued to engage fans. Ultimately, fans and even children too young to play the app had to have product resulting in a property that is a hot pop-culture phenomenon.

The Licensing Book • 35

State of the Industry

Ashley Maidy

Michael Connolly

Activision

DreamWorks Animation

Head of Global Licensing and Partnerships,

What types of properties are on the rise and what trends are leading to this?

Traditionally, licensed merchandising programs are led by properties based on film, television, or toys. However, we’re seeing a surge in properties led by video games and mobile apps. Digital entertainment has proven to be a platform that translates well to merchandise, particularly in categories that are endemic to games, such as electronics and accessories. We’re seeing more and more video game properties being supported by licensed merchandise as fans clearly have an appetite for surrounding themselves with meaningful products that reflect their lifestyles. More recently, we’ve seen this trend through our own Skylanders property. First introduced in 2011, Skylanders is the first of its kind to successfully bridge toys and video games, making it the No. 1 kids’ video game franchise in 2012. As a result, we’ve seen demand grow for meaningful branded product extensions.

Do you incorporate consumer feedback into your licensing program?

In our licensing program, we take into account direct consumer feedback, information shared by retail partners, and findings from our own consumer research identifying those products in which fans and consumers have the most interest. This collective feedback has contributed to the building of the Skylanders program, which consists of more than 150 partners worldwide and spans across every major category. Our strategy is to grow with the franchise and continue to offer multiple touch points for our fans.

36 • The Licensing Book

Head of Global Consumer Products,

Are you seeing DTR as a growth area for the licensing industry?

So many licensors sign direct-to-retail agreements just to get the business, but then fail to drive incremental business, while at the same time upsetting their licensee base. DTRs were started to address retailers’ need for differentiated product, and were only inked if the retailer has the will, skill, and design capabilities to do so. Now, what has turned into a quick-fix solution has become a problem for some studios. DTRs should be strategic; they should only be done with retailers that will support the brand through design on product and real estate in-store.

Do you collaborate with retailers for exclusive partnerships? Is this something you plan to expand on in the future?

We have, and we will again, but in a much more strategic way. Channel strategies are extremely important to a new or vintage brand, but some licensors don’t have the patience to wait until something is seeded from the top retailers or co-brands, gain momentum, then bring it to the next channel of retailers.

To get to the wider masses, sometimes it could take five years, and everyone has a need to deliver revenue yesterday, but those who are patient could be rewarded with the largest rewards.

Some of today’s top mass brands started somewhere small or exclusive.

Retailers need “meaningful exclusivity;” the days of marketing mechanics only no longer work. Marketing programs must tie into product, and offer meaningful exclusiveness, and, yes, sometimes parking a program at an exclusive retailer or channel of retail makes all the difference in the world five years from now.

How do you keep a classic property fresh for today’s consumer?

Classic products can be maintained and kept fresh in many ways—style guides, viral content, etc. The most meaningful way to do so is the collaboration of vintage brands with tomorrow’s style and fashion trends. If one can accomplish this, without forfeiting the root of what makes it both vintage and cool, then they will win. We are going through this as we speak here at DreamWorks, as we have just inherited one of the most elite vintage portfolios of brands in the industry [Classic Media]. We must focus and roll all of them out in a very sensible, fashion-forward way.

Summer 2013

State of the Industry

Marc Mostman Partner,

Striker Entertainment Are you seeing DTR as a growth area for the licensing industry?

We believe that there are instances where the direct-toretail option makes sense for a particular brand. This year we are working with Spirit Halloween stores for a direct-toretail Halloween in-store promotion surrounding the season four launch of AMC’s The Walking Dead. Spirit will be producing additional Walking Dead products exclusive to their stores to supplement the existing Rubie’s Costume Co. range of products, and will be doing in-store signage, online promotions, and other consumer outreach. This helps drive viewers to tune in to the show and creates buzz at the retail level with consumers looking for the broadest assortment of licensed products.

Do you collaborate with retailers for exclusive partnerships? Is this something you plan to expand on in the future?

Striker Entertainment believes that it is crucial to the success of any licensing program to have meaningful retail support. As such, we work closely with various retailers depending on the property to establish a special retail relationship to give a particular property a “retail destination.”

For example, Hot Topic was a key retail destination for Twilight and The Hunger Games around the theatrical launch of the feature films in those franchises. We worked with Hot Topic and the licensees to put together a compelling presentation of licensed products front-of-store with instore and window signage to elevate the brand. The relationship was not exclusive, but there were certain lifestyle products that did not go to other mall stores beyond Hot Topic until later in the cycle. It’s great to have motivated licensees on board, but without equally motivated retailers, a licensing program is just not going to be as successful.

38 • The Licensing Book

Liza Abrams

Vice President, Licensing & Corporate Communications,

Sakar

Do you collaborate with retailers for exclusive partnerships? Is this something you plan to expand on in the future?

Yes, of course. We will collaborate with retailers for exclusive partnerships if it makes sense for the retailer. This activity tends to be more opportunistic, but we are always open to new and exciting opportunities. For example, this summer we are launching our XO Learning Tablet at Walmart.

It is a child-centric, 7-inch Android learning device created under a licensing agreement with One Laptop Per Child. It is currently the only tablet that supports the bilingual family (additional languages will be included in future releases). It features a child-friendly user interface and offers a library of educational content, including pre-loaded books, games, videos, and a curated app store. This is one example, but we are always working with a variety of retailers on exclusives and are definitely open to all opportunities. It’s a great way to forge strong relationships with our buyers.

What is the biggest challenge the licensing industry is currently facing?

The biggest challenge that the licensing industry currently faces is an oversaturated marketplace; there are so many brands competing for increasingly small shelf space. In addition to competing for retail placement, brands also have to compete for children’s attention. Consumers have so many choices—there is just so much out there.

What is your strategy for approaching international and emerging markets?

We usually launch a licensed product in the U.S. before introducing it in an emerging market. This has been a reliable strategy for us; the U.S. tends to be an accurate barometer for international success. Emerging markets love licenses as much as the rest of the world.

What is the most important lesson you’ve learned about licensing?

The most important lesson that I have learned about licensing is that there is always a risk associated with taking on a new property, even with strong, established brands. Every license is different, so we cannot implement a one-size-fits-all strategy and expect to be successful. Product for new (and existing) licenses needs to be carefully designed for its target audience.

Summer 2013

State of the Industry

Liz Kalodner, EVP and General Manager,

CBS Consumer Products How do you keep a classic property fresh for today’s consumer?

Technology is a key component of keeping classic properties fresh and germane—be it social gaming, online fan communities, or simply access to on-demand e-commerce. Fans have the opportunity to interact with classic properties in ways that weren’t available before, and they are no longer dependent on traditional media, sometimes long gone, to keep the shows top of mind. In addition, new artwork and current themes on product and co-branding with other pop culture entities can maintain a property’s relevance.

Are you seeing DTR as a growth area for the licensing industry?

As licensors and retailers get more competitive and shelf space shrinks, DTRs have become an attractive option for many properties. While the upside can be limited because of narrower distribution, the focus, commitment, and marketing support can more than compensate.

We now see DTRs across all demographics (children and adult), all categories (from housewares to footwear), and all subject matter (sports, fashion, and entertainment).

What is the most important lesson you’ve learned about licensing?

Nothing is a good idea until it’s a great idea. In a business where so many people are risk averse and the first response is often “no,” taking a risk is a game changer.

Twilight proved that the teen and tween market, previously thought too old, is viable. Angry Birds showed that casual game play could turn into a mega kids’ franchise.

The Good Wife demonstrated that you can sell high-end home furnishings from main street entertainment.

40 • The Licensing Book

Diane Reichenberger Vice President of Consumer Products, North America,

Mattel

Do you collaborate with retailers for exclusive partnerships? Is this something you plan to expand on in the future?

We do collaborate with retailers for exclusive partnerships and find this approach incredibly successful. It allows us to create a customized program for our customer that highlights our properties in a unique and compelling way.

How important is social media to the success of your properties? In what other ways are you engaging consumers?

We know consumers are using social media to discover, research, and share information about brands and products, and it is important that our properties are a part of the conversation. Social media is just one part of the marketing mix; we also leverage digital platforms, retail activation, media, promotions, branded experiences, and content to further engage consumers with our brands.

What is the biggest challenge the licensing industry is currently facing?

With so many competing properties in the market, it is critical to work with best-in-class partners and collaborate on compelling and differentiated products. The consumer is extremely savvy and we must remain competitive through pricing, design, and excellent quality.

What types of properties are on the rise and what trends are leading to this?

At Mattel, we continue to innovate and stay relevant with our target audience and parents by launching new properties that are ahead of the trends. This year we are continuing to go beyond the toy box and develop complete franchises. With Mattel, kids can experience our brands throughout their childhood, starting with Thomas and Mike the Knight and growing into Barbie, Hot Wheels, and Max Steel, which was launched this spring in the U.S. via an animated TV show, digital engagement, and product at retail. All of our brands are multi-dimensional, allowing kids to engage digitally, through both toy and consumer products, as well as through unique branded experiences.

Summer 2013

State of the Industry

Josh Silverman

Jamie Kieffer

Disney Consumer Products

Tomy International

Head of Licensing,

What types of properties are on the rise and what trends are leading to this?

Preschool properties are making a significant emergence, and Disney Junior is dominating this segment from a network and product perspective. We’ve seen first-hand that great content not only captures kids’ attention, but also immerses them in stories that teach them life lessons—from caring and nurturing with Doc McStuffins, to imagination and adventure with Jake and The Never Land Pirates, to manners and social lessons with Sofia the First. These key attributes also parlay into great, aspirational product extensions that enable kids to role play as their favorite doctor, pirate, and princess-in-training. The rise of preschool properties overall has collectively expanded the retail footprint for the preschool category; it’s a win for everyone.

How do you keep a classic property fresh for today’s consumer?

There’s a certain commitment that comes with the licensing and franchise management of some of the world’s most iconic and beloved characters. We’re heavily invested in continuing to grow these franchises, and keeping them fresh and relevant with today’s consumers is top of mind for us. From Mickey Mouse and Minnie to Winnie the Pooh and Disney Princess, we do this through sharp and interesting creative interpretations and executions that leverage the equities of the franchise, but remain true to its spirit and soul. We also deliver this through innovative collaborations and high-quality and storytelling product extensions such as with Disney Princess and Sephora, which delivers trendright product that appeals to princesses of all ages. And finally, but very importantly, through new “best-in-class” content—from powerful storytelling to the platform in which the content is consumed, whether that’s through apps, digital books, games, online/offline toys, etc. All of this works in concert to ultimately deliver a tailored and memorable experience when today’s consumers engage with our franchises and characters.

42 • The Licensing Book

Chief Marketing Officer,

How do you keep a classic property fresh for today’s consumer?

At Tomy, we keep our classic properties fresh by focusing on consumer insights and pushing ourselves to deliver meaningful innovation. The fact that a “classic” brand or property has been around for years doesn’t mean it hasn’t been changing. In fact, the most successful classic properties meaningfully adapt to the demands of a new world and re-invent themselves over time. Take John Deere, for example. It’s one of America’s most iconic farming and construction brands, but their equipment is becoming highly technologically advanced. It creates a fun and interesting challenge to portray this aspect of the brand in our toy lines.

There’s probably nothing more “classic” in our portfolio than our Disney infant business, where we apply a stable of classic and iconic franchises to time-tested parenting challenges like infant feeding and potty training. In these categories, whether it’s developing an easy-toclean single-piece sippy cup lid or a potty that uses character sounds to provide positive reinforcement, our teams are always looking to use innovation to keep these products and properties relevant and fresh.

What is the most important lesson you’ve learned about licensing?

Simply put, licensing is branding. We can only do our jobs well when we meaningfully understand and care about the strategic stewardship of the brands we license. If you ever forget this and end up using licenses as a means simply to chase revenue opportunities, you are doing both yourself and your licensing partners a huge disservice.

The brands that we work with—Pokémon, Chuggington, and Lamaze, to name a few—have tremendously loyal and passionate followings. Those followers have expectations that need to be met or exceeded across all brand contact points. Toys magically take properties off the screen and put them in the hands of your biggest fans.

We have to realize that for the opportunity and the responsibility that it truly is. And we have to create toys that add at least as much to the brand experience as they benefit from the brand association.

Summer 2013

Jim Kipling

Howard Beige

Dinsmore & Shohl LLP

Rubie’s Costume Co.

Of Counsel,

How has the structure of license agreements changed over the years since you’ve been in the industry?

The concepts are the same but the complexity has increased dramatically. The majority of deals in earlier years covered a few products, vaguely defined property rights, and simple payments— usually an advance against a flat royalty and an end-of-term guaranty. When we at Kenner negotiated the first Star Wars trilogy deal, we created the concept of the “master toy and game license,” but the payment structure was largely unchanged.

Incredibly, that agreement was a mere 12 pages long, but it granted Kenner exclusive worldwide rights that covered all categories of toys, games, crafts, and hobby products in exchange for the princely sum of $25,000 as advance against a non-escalating 5 percent royalty and a non-segmented $150,000 guaranty.

By contrast, when we negotiated the second Star Wars trilogy agreement on behalf of Hasbro in 1997, the final document exceeded 250 pages, the dollars committed were somewhat more numerous, and every element of the deal was sliced and diced until we had discovered charm quarks—without benefit of the CERN particle collider.

License negotiators today must deal with an ever-increasing array of issues. Media outlets have multiplied geometrically, and audiences are dispersed among a myriad of choices. When licensing an entertainment property, for example, one must establish reliable criteria to measure the relevant viewership, hopefully on numerous platforms. You must ensure that you’re paying for a real audience.

This all adds complexity, but protection of the client’s investment is essential. The devil may be in the details, but so is assurance that the client will get what it pays for. Success requires a disciplined process to prepare for each negotiation. Without a clear and measurable roadmap, the negotiators can lose their way and become driven by the emotion of the moment. That’s a prescription for disappointment, if not disaster.

Summer 2013

EVP,

What types of properties are on the rise and what trends are leading to this?

Superhero properties such as Batman and Man of Steel and science-fiction properties such as Star Wars and Star Trek are enjoying renewed popularity as character development is more human and not always perfect. The characters’ flaws make them appear more human and easier to associate with. It has become more believable and more appealing to today’s fans and to the public in general. In addition, properties like Monster High for girls are found to be very socially engaging for today’s younger audience, and feature a positive message.

Do you incorporate consumer feedback into your licensing program?

Absolutely. We incorporate consumer feedback at many stages, including in the very beginning when deciding if a license is right for our category and company, as well as during the product development cycle when deciding what products to develop for that license.

What is your strategy for approaching international and emerging markets?

Rubie’s has invested heavily in the international markets as we now have a presence in 15 countries around the world. Our international strategy encompasses having our own facilities and staff in each of these markets as opposed to using distributors, thereby ensuring a full and appropriate product offering in each market.

Our international companies start by offering products based on worldwide licenses that are arranged by Rubie’s North America.

In addition, they negotiate their own local contracts for properties that are meaningful to their own specific market. Many of our international facilities have their own product development departments to create and design products suitable for their own specific market.

The Licensing Book • 43

Juli Boylan

Head of Global Licensing and Merchandising,

Nerd Corps Entertainment How are you utilizing multiple entertainment platforms to expand awareness and increase consumer engagement with your properties?

While TV is still the primary content delivery channel for kids today, there is also an expectation that content will be available wherever and whenever kids want it. Building a property that can move across multiple platforms is critical for success and hitting the “big four”—broadcast television, video on demand, online, and mobile—is the price of entry for any new property today. With our most recent brand, Slugterra, for example, the television series began broadcasting on Disney XD in the fall of 2012 with global broadcasts and free TV rolling out in 2013 and beyond. Video on demand and iTunes episodes launched day-and-date with the show, along with a robust website experience at www.slugterra.com and show page on DisneyXD.com featuring our hit flash game Battle for Slugterra, and, finally, direct engagement through various social media channels.

Our first iOS game, a match-three battler called Slug it Out, followed a few months later, and we have since issued several updates to the website, flash game, and iOS game, as well as leveraged a series of unique bonus shorts online to drive engagement with fans. The cumulative impact of these four platforms working together is just staggering, and has allowed Nerd Corps to directly and effectively support our licensees and product launches from a promotional standpoint.

How important is social media to the success of your properties? In what other ways are you engaging consumers?

Social media is a huge opportunity that requires a very careful approach when you’re dealing with kids. Research has clearly shown that kids are in the space and having conversations about the TV shows and properties they love, yet many of the top social media spaces do not allow kids to participate, and we have a shared responsibility to protect their online privacy and safety. The feedback we’ve heard from our broadcasters is that parents welcome safe spaces for their kids in social media and are going there with them, so we’ve developed that presence on Facebook and YouTube for Slugterra fans, with plans to move into Instagram in the near future.

The feedback and two-way dialogue we’ve had as a result has been incredibly valuable and instrumental to the growth of the brand. With a boys’ action-comedy property like Slugterra, there is a deep love for the characters, so having the ability to hear directly from kids about what kind of content they want to see more of, and where to go next, has been invaluable.

Summer 2013

Brad Globe President,

Warner Bros.

Consumer Products What is your strategy for approaching international and emerging markets?

Our properties travel well globally, so our approach to international business is quite similar to our approach in the U.S. We pursue best-in-class licensees in all key categories and then combine our character expertise with their product expertise to create and distribute the most compelling product lines possible. What often differs internationally is the mix of classic property to movie property business, with the classics overindexing outside the U.S. However, the methodology by which we take our properties to retail is quite consistent everywhere.

That said, certain key emerging markets are unique. In emerging markets where awareness continues to grow, we focus on promotional tie-ups that will help us build more awareness. Conversely, there are outlier instances in which our characters are vastly more popular in one corner of the world than another. We focus on these opportunistic environments to further build a business that offers a different opportunity than anywhere else. In general, we tend to leverage our strength and scale similarly everywhere.

How are you approaching retail differently than you have in the past?

The retail landscape is consistently populated with entertainment properties and we are looking at new ways of providing fans with their favorite characters and brands.

We recently announced a first-ever partnership with Walmart, which will be bring Man of Steel to fans by selling exclusive tickets to an early screening. We have also been working with Target to host a Justice League environment in Target stores across the country. We are seeing a definite shift in retail space, so we believe the opportunity lies in giving fans a shopping experience that resonates with them and complements different aspects of our properties.

How do you keep a classic property fresh for today’s consumer?

We are fortunate to work with an arsenal of fan-favorite properties that stand the test of time. Passed down from generation to generation, properties like Batman, Looney Tunes, Scooby-Doo, and even The Wizard of Oz remain ingrained in pop culture and are a driving force in our business. That said, it’s important to reinvent and refresh in order to remain relevant with our younger audiences. As we gear up to celebrate the 75th anniversary of The Wizard of Oz, we’re working with licensees to create products that call back to the earlier days of the classic film’s popularity, offering an artistic style that is reminiscent of another era.

Summer 2013

Carol Spieckerman President and CEO,

newmarketbuilders

What is the most important lesson you’ve learned about licensing?

That the industry continues to be resilient and relevant, for reasons that always evolve.

When retailers began to market their private brands as viable alternatives to national and licensed brands instead of low-cost alternatives, it didn’t kill the licensing business. Licensors went on to deepen their collaborations with retailers by exploring co-branding opportunities and direct-to-retail partnerships. Today, licensed brands are re-emerging as points of differentiation and opportunities for margin-building as price transparency and showrooming make pricing shell games a thing of the past. When retailers compete against one another with national brands, it’s a race to the bottom on price.

What types of properties are on the rise and what trends are leading to this?

Print and publishing have long been on the death watch list, but thanks to the craze for content, traditional print brands are breathing new life into their businesses through product licensing and other brand extensions. The GQ bars and Vogue cafes that Condé Nast is opening around the world and Target’s partnership with Wired magazine are recent examples that demonstrate the power of content as a core capability. These days, content is branding, whether in video, blogs, images, or tweets; created in-house; or grabbed from other sources. Publishing brands have a powerful window of opportunity as retailers’ and consumers’ appetites for content accelerate.

What is the biggest challenge the licensing industry is currently facing?

The shift away from brand exclusivity and toward brand ubiquity. As media has become more fragmented, sensibilities have shifted. Tightly controlling a brand is a ticket to obscurity, while the best way to keep a brand top-of-mind and build brand equity is to have it in many physical and digital spaces, across multiple business models, including wholesale, owned retail, and direct-to-consumer. Martha Stewart Living Omnimedia is one of the more prescient names for a company for this reason, as its intention from the start was that the brand would be in many places at once. Macy’s and JCPenney haven’t been fighting over the Martha Stewart brand in spite of its ubiquity, but because of it. The brand ubiquity movement is going to require licensors and licensees to be creative in customizing brand deployment across multiple competing retailers and across the touch points that matter to them, rather than resorting to product exclusives as their lead strategy. This presents both a challenge and an opportunity. Brand awareness and volume can be generated more rapidly, but execution will be far more complex.

Summer 2013

Elie Dekel President,

Saban Brands

How are you utilizing multiple entertainment platforms to expand awareness and increase consumer engagement with your properties?

Today, young children are not only watching TV, but are also consuming media, communicating, and interacting on multiple screens. Saban Brands has embraced this “new normal” across all of our brands. We’re continuously building and enhancing our digital and social media strategies while also driving TV exposure for our core brands.

This is true for Power Rangers and Vortexx, and we plan to do the same for our upcoming Julius Jr. and Digimon Fusion series. The Playforge, our digital mobile gaming studio, and Zui.com, the No. 1 place for kids to safely discover and share online, are also integral to our strategy.

How important is social media to the success of your properties? In what other ways are you engaging consumers?

Social media is extremely important to the success of all of our properties. We engage our fans on Facebook, Twitter, YouTube, Instagram, and even Pinterest where appropriate. We have more than 750 million views for Power Rangers on YouTube, which curates from our official Power Rangers YouTube channel, as well as individual fan videos.

The two-way conversation that social media provides has been invaluable to our brand management approach. Through social media, we get real-time feedback from our fans, allowing us to be more directly engaged with consumers than ever before.

We also engage consumers in other ways, one of those being the Power Ranger’s official fan counsel, the Power Force. The Power Force represents a group of 20 select “super fans” who were chosen to receive exclusive inside Power Rangers access. They, in turn, help us spread the word.

How do you keep a classic property fresh for today’s consumer?

The Power Rangers franchise has now been around for 20 years, yet it is as popular today as it was when it was introduced two decades ago. Our success comes from maintaining the core essence of the brand, while also finding innovative ways to keep it entertaining. We cater to those “super fans” who have been loyal fans of Power Rangers since the very beginning with the Mighty Morphin Power Rangers season, while also tailoring to kid audiences who are experiencing the brand for the very first time.

Through our omni-channel approach, we make sure that fans see Power Rangers across many categories, from consumer products to broadcast to gaming and more.

Summer 2013

Inside Retail

Risk Averse Retailers Trends impacting shelf space hint at a challenging environment for licensed products.

by Sean M. Heitkemper

I

t is an understatement to say that the retail environment in the U.S. was in flux in 2009; it seemed more like a rapid and broadly felt collapse. Each day brought another announcement about an overleveraged and over-saturated national or regional retailer permanently shuttering its doors. Circuit City (then No. 32 on National Retail Federation’s Top 100 Retailers), Steve and Barry’s, Linens ’n Things, Domain Home Furnishings, Gottschalk’s Department Stores, and Carolina Custom Golf were just a few of the casualties of that time.

Licensing agents panic when retail shelf space shrinks significantly, and major licensors such as Ford, Chrysler, and General Motors looked poised to collapse. Taken in context with the political climate at the time, it wasn’t an overreaction to state that everything was going to change—and it seemed for the worse.

We survived though. Roughly four years after the economic collapse, some of the changes are taking place in this anemic recovery. It is time to make sense of the changes and develop strategies for success based on this experience.

The rise of private label is a real and ongoing change, as is the rise of direct-to-retail (DTR). In department stores, Kohl’s generated 48 percent of 2012 Q4 sales from private and exclusive brands. Recently, Dick’s Sporting Goods purchased the rights to the Field & Stream brand across several categories, which had been licensed since 2007 under a DTR arrangement.

Cherokee acquired a new maternity line under the Liz Lange Maternity brand exclusive to Target. There are many examples in the market today, and the DTR trend will continue.

48 • The Licensing Book

Large grocery retailers such as Kroger and Walmart have invested in new branding strategies for their private-label brands, including updated packaging and enhanced presence in key areas such as natural and organic, dairy, and deli. They are not alone.

Shelf space took a clearly definable hit as a result of store closures, but the growth of private labels, increasing reliance on exclusive DTR brands, and the intentional reduction in the number of SKUs on store shelves has a potentially broader impact on the availability and ease of entry to retail space. Regardless of which retailers close or remain open, the question of shelf space is one of the key variables to any successful licensing strategy.

For many licensing partnerships in food and beverage categories, access to grocery store shelves is a question of money. Slotting fees limit the pool of potential partners that have the funds to launch a new brand in this space, and these fees influence vectors of innovation in food and beverage categories by excluding those who either can’t or won’t pay. These fees may also play a deeper and undocumented role in consumers shifting to non-traditional and mass-market retailers for these categories to seek out better selection, unique product offerings, or better prices.

Regardless of slotting fees, traditional grocery formats are struggling. In general, food and beverage categories have experienced several consecutive quarters of year-over-year declines at supermarket and other traditional grocers, says Keith Nunes in Food Business News.

Sam K. Reed, chairman and CEO of multi-category food distributor TreeHouse Foods Inc., laid out the

Summer 2013

challenge for this sector in an August earnings conference call. He said, “Plagued by economic uncertainty and political impasse, consumers have cut back once again as growth and personal expenditures for home consumption of food and beverage has fallen from a high of +4 percent back down to zero. Conventional grocers have been left behind, as cash strapped consumers have abandoned them in favor of discount and limited-assortment retailers and dollar meals and QSR chains. This shift has been exacerbated by a continual series of price increases paired with promotional decreases. Since January (2012), general food and beverage, a composite of 102 product categories, has grown only 1 percent in dollars, as units have dropped 4 percent in the face of 5 percent-plus pricing and an equal decline in in-store merchandising.” Perhaps this hints at other ways to build successful licensing programs with more agile and active non-traditional retail partners. Obviously, this is a slower build, but over the life of a program it can yield excellent results.

Supply chain integrity issues continue to drive intense concern over food safety and accurate labeling. Although recent events have not involved licensed products, the issue is particularly relevant to licensing partnerships and retailers alike. Risk aversion can be a significant factor impacting the availability of space for licensed products.

The timing of the horsemeat scandal in the EU and recent federal indictment of executives involved in the 2009 tainted peanuts scandal was a call for many of the largest food producers to regain control of the ingredients they use and monitor the quality of their products more closely. This could impact both the retailer’s openness to carry products originating outside a set of closely monitored category captains and increase monitoring and documentation hurdles for any manufacturer considering adding a licensed brand to its portfolio.

Store closures, the rise of private label and direct-toretail (DTR), and intentional across-the-board reductions in brands per category have made distribution of licensed products a challenging puzzle. The key to success for any licensor will be to develop a comprehensive business plan for licensing that includes an intentional distribution strategy and a plan to overcome the hurdles inherent in the chosen channels. This is especially true for food and beverage channels, where the cost of access can be significant and it may be beneficial to strategically target

Summer 2013

alternate channels or a mix of both. Many licensed properties are effectively using online retailers as a way to offer a broader range of products with more consistent availability when retail shelves are unavailable.

Licensors should evaluate exclusive retail relationships that guarantee distribution. If you don’t want to be limited by an exclusive relationship with a single retailer, a retail partner is also a competitor with a vested interest in supporting their own, likely higher-margin, private-label, or exclusive brands. A compelling story about the benefits of working with your brand that includes detailed research and analysis will help sell the brand and product.

Retailers are concerned about the profitability of every inch of shelf space; show them what your brand can deliver.

For manufacturers, the right distribution strategy coupled with the right brand is key for success. A licensed brand can open the door and increase available shelf space.

Make sure you understand the brand and that your strategy is backed by detailed and current research. Arm yourself with data that will attract retailers. Take an entrepreneurial approach by developing a business plan that will display professionalism and low risk of failure.

Retailers are looking for a “sure thing.” The days of throwing licensed properties against the wall to see what sticks are gone.

•••• Sean M. Heitkemper is director of business development for The Valen Group, a growth and innovation firm with integrated services in strategy and innovation consulting, market research, and strategic brand licensing. He has more than 15 years of experience managing the development and execution of consumer product brand licensing programs. Heitkemper has been a featured speaker at The Licensing Show and has authored multiple articles on brand strategy and licensing.

The Licensing Book • 49

Toy Licensing

Licenses for Toys Are Double-Edged Swords

by Lutz Muller

L

icensing has become an integral part of toy marketing. According to The NPD Group, toys based on licenses accounted for 30 percent of all U.S. retail dollars last year, and about 25 percent in units. This is considerably higher than estimates made a few years ago, which put the dollar share at 25 percent.

Movie and TV Licenses Lead the Pack— For Now This year will see a large and diverse offering of toys based on movie and TV licenses. Here are the highlights: Retail Sales Forecast 2013 U.S. Only $ Millions 50

Box Office Forecast 2013 U.S. Only $ Millions n/a

Mattel

45

n/a 130

8,000 6,000

Transformers Beast Hunters (TV)

Release Date Master Category Licensee 2013 Hasbro Action Figures 2/13

Max Steel (TV)

Action Figures 3/25

Movie

G.I. Joe: Retaliation

Action Figures 3/29

Hasbro

90

Iron Man 3

Action Figures 5/3

Hasbro

135

375

Star Trek Into Darkness

Action Figures 5/17

Hasbro

50

315

Hulk and the Agents of Smash (TV)

Action Figures 6/13

Hasbro

45

n/a

Man of Steel

Action Figures 6/14

Mattel

65

270

Marvel Avengers Assemble (TV)

Action Figures 7/7

Hasbro

15

n/a

X-Men Wolverine

Action Figures 7/26

Hasbro

10

140

Thor 2: The Dark World

Action Figures 11/8

Hasbro

135

350

The Hobbit: The Desolation of Smaug

Action Figures 12/13

Glorbil

65

300

Scaris (TV)

Dolls

3/1

Mattel

35

n/a

Oz the Great and Powerful

Dolls

3/8

Jakks Pacific

20

300

Frozen

Dolls

11/4

Mattel

65

280

The Smurfs 2

Preschool

6/31

Jakks Pacific

40

90

The Croods

Preschool

3/22

Mattel

30

150

Turbo

Preschool

7/1

Mattel

40

145

Despicable Me 2

Preschool

7/3

Hasbro

25

205

Planes

Preschool

8/9

Mattel

40

100

50 • The Licensing Book

Action Figures are the toy category most driven by movie and TV licenses—more than 50 percent of all sales dollars for the category in the U.S. are either spent on movie or TV licensed products. In comparison, only 5 percent of total sales dollars are media-license driven in the dolls and preschool categories.

The movies in the table above are expected to represent 30 percent of all movie ticket dollars spent this year in the U.S. This being the case, it behooves us to consider what the probable future shape of the U.S. movie and TV industry looks like.

First, movie ticket sales:

U.S. Movie Ticket Sales In U.S. $ Millions 12,000 10,000

4,000 2,000 0 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

While cinema ticket sales have been marginally up during the past 10 years, bond analysis firm Fitch Ratings offers a somewhatpessimistic outlook. The company forecasts a “modest” decline in ticket sales this year, and

Summer 2013

long-term challenges that should “cause concern” for lenders. Studios will find it “difficult to replicate” the success they had last year with hits including The Avengers and The Dark Knight. In fact, cinema chains AMC and Regal are very much concerned about the sharply negative trend they foresee for the remainder of the decade. One solution being discussed is the consolidation of theaters from the current 39,000 screens down to approximately 20,000. This has caused disputes between studios and theater chains.

Studios are pushing for shorter theatrical windows before films move to other distribution channels, while theaters want to keep films running on their screens for as long as possible to maximize revenue.

These events indicate that the importance of movies as toy drivers is bound to decline over time.

TV. Cynopsis Media reports audience numbers for this age group in comparable weeks in early April between 2010 and 2013 for the top 10 basic cable ad-supported networks:

TV Audience Top Ten In 1,000 viewers ages 6-11 per week 4,100 4,000 3,900 3,800

April 5-11, 2010

3,700

April 4-10, 2011

3,600

April 2-8, 2012

3,500

April 1-7, 2013

3,400 3,300 3,200 Kids ages 2-11

Shifting Gears Parents are moving away from TV as their main source of information for toys as well. Jeff Adelson of Levelwing says, “Online toy sales have climbed substantially in the last 10 years, and parents are doing their research about toys online. Thirty-nine percent of toy purchasers cited online retailers as their most oft-used resource, with 43 percent citing video sharing sites. Therefore, toy manufacturers must begin user-generated content initiatives (both written and video reviews), as well as content development about their products online. Only 24 percent of toy purchasers said that they relied on traditional media, like TV and magazines, for their toy information.”

Manufacturers must consider how the prime consumer group, kids ages 2 to 11, are viewing

Summer 2013

Approximately 30 percent of all toy sales are made for products that carry licenses, and the most important drivers are movies and TV series. Mattel and Hasbro are the main beneficiaries of this year’s offering, and are, therefore, dependent on licenses to a substantial degree.

The two main drivers for toy sales—movies and TV—are losing impact, and manufacturers must seek alternatives. Factors to consider are why licenses have become so important to the toy industry, and whether or not they are good for a manufacturer to have.

The Good and the Bad There are pros and cons for toy licenses. The main benefit is that the license typically has a

The Licensing Book • 51

Toy Licensing

built-in consumer following that will benefit the product carrying the license. Movies such as Spider-Man, Star Wars, and The Smurfs are a classic example of this. Not only will such a license make negotiations with major retailers easier and quicker, it will also likely provide a ready consumer pool that is predisposed to buy the product. In short, rather than building a consumer franchise, manufacturers can essentially rent it via a license.

The main negative is cost. A good license will cost anywhere from 10 to 20 percent of net sales, with hefty minimum guarantees and upfront payments being the norm. Another negative is that license agreements are limited in time—usually three to five years. This means that a toy manufacturer can create a business around a license and then lose it if the licensor elects not to extend the license period. Lastly, it is time consuming to satisfy the demands of the licensor through reports, meetings, and discussions.

There are more insidious problems attached to licenses. Steve Reece, a European toy consultant, said, “Those companies who focus only on the short term tend to exhibit an over reliance on licensing and/or transient technology, neither of which act to effectively lay down solid, dependable, long-term foundations for their business. Technology can provide a short-term boost to sales and a competitive advantage, but even patented technology has its limitations in terms of true protectability. Licensing is a powerful, and normally essential, part of a toy company’s product approach. However, once a company enters the licensing treadmill it tends to rely on a significant proportion of its revenue coming from hot licenses, and retailers also rely on the

52 • The Licensing Book

company to supply less licensed merchandise.

When the company has a weaker year for licenses, revenue falls, as do retail listings on other non-licensed products.”

In other words, a license can change the way a business is seen and built. A license can be an effective shortcut, but a manufacturer surrenders a lot of control over its fate to the licensor, whose business imperatives can be very different from its own. It can also affect the way a business is run—rather than planning optimally for what is best for the business, the manufacturer must plan to satisfy quarterly licensing requirements.

DIY Branding For these reasons, the logical alternative is for toy manufacturers to build their own brands, making sure that all measures to protect their intellectual property have been taken. Once the brand is firmly established, the manufacturer can seek licensees.

An example of this is the Monster High brand, owned by Mattel. Monster High fashion dolls were released in July 2010, and are now the No. 2 fashion doll after Barbie (also owned

by Mattel). Not only has Mattel introduced the brand in a variety of toy categories other than fashion dolls (e.g. vehicles and play sets), it has licensed the brand to at least 25 companies, including Sakar, Crayola, Majesco, and Universal Studios, for non-toy products such as clothing, backpacks, and cosmetics. Monster High fashion dolls account for an estimated 67 percent of total Monster High sales; other Mattel toy categories account for another 15 percent, and nearly 20 percent go to non-toy products sold by third-party licensees.

Monster High fashion dolls have affected the

Summer 2013

Toy Licensing

Barbie brand, according to Google Trends.

Interest over time News headlines

The number 100 represents the peak search interest

100

L

M

I

D

B

E

C

80 60 40

F

20 N Average

K Jul 2010

Jan 2011

J

H Jul 2011

A

G Jan 2012

Jul 2012

Jan 2013

Barbie Disney Princess

of successfully mixing licenses with brands. The Disney Princess brand has a devoted following, is loved by retailers, is profitable for Mattel, and represents about 20 percent of the company’s total fashion doll empire.

Its loss would be a major blow, but it would not be fatal. Barbie is a mature brand, stagnant or gently declining, and still represents about 47 percent of the total. Monster High is new, rapidly growing, already at approximately 33 percent, and is expected to continue expanding at a rate that exceeds the decline of Barbie.

Monster High

Less Is More Mattel’s overall fashion doll sales have increased, and that trend is expected to continue this year.

Mattel Fashion Doll Sales Worldwide U.S. $ Millions 3,500

Licenses have their place in the toy business but are best used in moderation. A license can be lost for any number of reasons, and its place in a business should never be so dominant that its loss will jeopardize the survival of the company.

••••

3,000 2,500

Barbie

2,000

Princess

1,500

Monster High

1,000

Total

500 0 2010

2011

2012

2013*

Mattel’s fashion doll business is an example

54 • The Licensing Book

Lutz Muller has been active in the global toy and video game market since 1984. He has lived and worked in Europe, Asia, Latin America, Australia, and the U.S. His insights are based on his daily contacts with toy buyers at big-box stores in the U.S. and Europe; his proprietary retailer panel in the U.S.; and his third-party manufacturing contacts in China.

Summer 2013

Hot Shots

An Interview with...

Elizabeth Bakacs, Vice President of Licensing, Discovery Communications How did the licensing program for Cake Boss begin?

As soon as the show aired on TLC in summer 2009, we had interest in developing a publishing program and struck a deal with Simon & Schuster. Our first Cake Boss book, Cake Boss: Stories and Recipes from Mia Famiglia, launched in November 2010 and since then we’ve added a Cake Boss book every fall. Not only does Buddy Valastro have amazing recipes for his Italian pastries and cakes, but he has a compelling backstory of his family’s rise to success in this country.

What's new for the Cake Boss brand this year?

Kicking off the new year, we opened our first streetlevel Cake Boss Café in Times Square at the corner of 8th Avenue and 42nd Street, where customers can delight in Buddy’s pastries, cakes—and custom cakes—and fan merchandise. In March, we introduced our extensive line of Cake Boss “cakeware” with Meyer Corp., which will be at retail this summer. We launched Cake Boss buttercream cakes last summer and are expanding the line with Dawn Foods, including cupcakes, fondant cakes (for which Buddy is famous), packaged cake mixes, and frostings.

Action Products and Ty Global have developed a line of pretty party goods and stationery, and a fourth Cake Boss cookbook with Atria Books is coming this fall.

Buddy Valastro, star of TLC’s Cake Boss

56 • The Licensing Book

Are there any new partnerships in the works?

We are in a number of discussions to bring the Cake Boss brand to fans of the show and aspiring bakers in a variety of new initiatives. We are also seeking partners for additional food categories and lifestyle products.

How involved is Buddy (Valastro) in developing Cake Boss consumer products?

Very. He is not an actor portraying a baker on TV; he is the real deal, practically born baking. In his commercial business, he often has to improvise and modify tools to produce the creative results he wants, and we are bringing that expertise and insight to our Cake Boss bakeware line.

What is your strategy for marketing and merchandising the brand?

Our partners are working together to develop custom merchandising solutions for retailers that bring together multiple categories, offering the consumer a complete Cake Boss solution—from baking to decorating to serving, all in one place. Our retailers understand the benefit of cross merchandising products; for example, selling the books next to the cakes at grocery stores.

What's in the future for the Cake Boss brand?

The Cake Boss brand has an appeal on multiple levels, from Buddy’s expertise at baking, to the creativity in decorating, to the dynamics of a family run business, to the humor in the pranks the family plays. The show and the brand appeal to a wide demographic—kids, teens, parents, and grandparents adore Buddy, his family, and the Cake Boss series. We look to expand our offerings on more platforms with more consumer products to reach all his fans and aspiring bakers.

••••

Summer 2013

Cakes

In partnership with Dawn Foods, Discovery Communications has launched Cake Boss cakes with six buttercream and dessert cakes inspired by the flavors, techniques, and styles featured on the TLC series. Cake Boss cakes are available for purchase in grocery stores and warehouse clubs nationwide.

This year, six varieties of Cake Boss cupcakes, three fondant cakes based on Buddy’s signature style, cake mixes, and packaged icings will expand the line and bring an authentic Cake Boss experience to consumers across the country.

Bakeware, Serveware, and Decorating Tools

Meyer Corp. will launch a full line of Cake Boss bakeware, serveware, and decorating tools in September. Featuring more than 20 collections, such as metal bakeware, cooling racks, prep and baking accessories, baking tools and gadgets, decorating tools for icing and fondant, cookie cutters, display and serveware, and gift-ready cake and dessert sets, the line is designed to appeal to bakers of all ages and expertise. In total, more than 250 items will be available to aspiring bakers and are designed with the expertise of Buddy himself.

Publishing

Buddy Valastro’s next book, in partnership with Atria Books, will hit book stores nationwide in November. The new book is the fourth installment in the Cake Boss publishing line, including Cake Boss: Stories and Recipes from Mia Famiglia; Cake Boss: 100 of Buddy’s Best Recipes and Decorating Secrets; and Cooking Italian with the Cake Boss. The Essential Cake Boss, an abridged edition of Baking with the Boss, features a collection of Buddy’s core recipes and techniques. This easy-to-follow version will become a beloved reference for all home bakers.

Summer 2013

Stationery and Party Goods

Action Products (U.S.) and Ty Global (Canada) will debut a full line of Cake Boss stationery items this July, including notepads, journals, dry erase boards, clipboards, magnetic list pads, mini receipt portfolios with pocket organizers, and day planners.

Action Products and Ty Global will extend the consumer experience with a line of Cake Boss party goods. Paper party plates, napkins, cups, and tablecloths are slated to hit stores this September. Party favors and decorations are currently in development to round out the perfect Cake Boss party.

The Licensing Book • 57

Hot Shots

An Interview with...

Ashley Maidy, Head of Global Licensing & Partnerships, Activision Publishing Inc. What does the success of the Skylanders property mean for Activision?

It was a big risk to enter the toy category with such an innovative but unknown property, and what it has shown is that consumers are eager for new experiences that meld toys and video games. We couldn’t be more pleased with the success Skylanders has seen so far, and we believe this year’s game, Skylanders Swap Force, will bring a new level of innovation to the franchise, which we expect kids will love.

What do you think it is about the property that appeals most to consumers and kids?

There is no question that watching toys come to life in a video game is one of the most appealing things about Skylanders. Equally as important, however, is the collectibility factor. With the launch of Skylanders Swap Force this fall, there will be more than 100 characters available, each with a unique personality and special powers. As players add new characters to their collection, they expand their ingame adventures. There is also a tremendous appeal to being able to play with Skylanders toys across all video game platforms.

The Skylanders franchise is still young but already has a robust licensing program. Tell us about your upcoming licensing plans.

We have more than 150 licensees worldwide, including an extensive pub-

58 • The Licensing Book

lishing program across multiple formats, construction sets, carrying cases, and board games, such as a Monopoly game from USAopoly, that will launch this summer. We also have a broad apparel and accessory program, bedding and room décor, trading cards, and consumer electronics.

How do the Skylanders consumer products relate to the innovation of the game itself?

There are very few game companies that have properties that lend themselves to such a rich merchandising program. This is certainly the first of its kind for Activision. With the Skylanders demographic—our core audience is kids ages 6 to 12—we have the ability to create a program that benchmarks against some of the leading intellectual properties in the market. The fact that Skylanders is both a toy and a game means that we are very mindful about the categories we explore. Our intention is to deliver top-quality, brandenhancing products that bring the magic of Skylanders to life for fans.

Coming off of such a successful year, how will Activision ensure that Skylanders remains on top of the toy industry?

Innovation is the key to the success and growth of the franchise. Both Skylanders Spyro’s Adventure and Skylanders Giants captured the hearts of millions of children by bringing toys to life in the digital world. The third installment in the franchise, Skylanders Swap Force, offers our fans a compelling new play pattern— dynamic swapability. By collecting 16 new Swap Force characters, our fans will be able to create more than 250 unique character combinations by swapping the top and bottom halves of the toys. Where do we go from there? It only gets better.

••••

Summer 2013

Character & Entertainment

Licensing Expo 2013

Activision Expands Skylanders Franchise with Swap Force Third Installment of the Franchise to Feature New Swapability Play Pattern

In 2011, Skylanders Spyro’s Adventure, from Activision Publishing Inc., originated a new play pattern that bridged physical and virtual worlds across multiple platforms. Last October, Skylanders Giants further evolved the genre and added the mega-sized Giants and LightCore characters to the collection of interaction figures that have helped the franchise achieve more than $1 billion in U.S. retail sales, including accessories and figures. The franchise reached the milestone in just 15 months, with more than 100 million Skylanders toys sold to date.

The next installment of the franchise, set for release this fall, is Skylanders Swap Force. The newest game features an all-new innovative play pattern: swapability. The game lets Portal Masters reconfigure Swap Force characters into more than 250 unique combinations. Kids can mix and match characters’ powers and moves and then bring them to life in the game. Fans of the franchise can also play Skylanders Swap Force with their entire collection of characters from both Skylanders Spyro’s Adventure and Skylanders Giants, now with the added capability of jumping.

Skylanders Swap Force features 16 new Swap Force characters, 32 core Skylanders characters (16 completely new Skylanders and 16 new versions of fan-favorite characters from previous games) and eight new LightCore characters. Swap Force characters feature new abilities, including flying, climbing, digging, bouncing, and teleporting. Skylanders Swap Force also delivers high-resolution graphics that bring the game’s detailed characters and rich environments to life, immersing players in the gameplay like

Countdown, from Skylanders Swap Force, set to release this fall

Summer 2013

never before.

A full licensing program supports the Skylanders franchise with more than 135 licensees worldwide in categories including plush, apparel, home décor, bed and bath, party goods, board games, and back-to-school items.

Global partners for the brand include Mega Brands with construction sets and puzzles, Penguin Publishing with novels and annuals, Power A (BD&A) with carrying cases, Topps with trading cards, Rubie’s Costume Co. with costumes, iHome with docking stations and speakers, BDA with game accessories, and Zappar with augmented reality Skylanders Giants Pirate Quest experiences and content. construction set, from Mega In addition, U.S. partners include Bloks (top), and Skylanders American Greetings with party Giants Gamepack, from Power A (bottom) goods and greeting cards, Leomil with footwear, Just Play with plush, FAB with back-to-school products, Thermos with lunch kits and FUNtainers, Franco with bedding, Hybrid-JEM with T-shirts, Isaac Morris with sportswear, Mad Dog with sleepwear, Pressman Toy with board games, and USAopoly with a Monopoly game.

Acitvision also partnered with McDonald’s restaurants for a Skylanders Giants Happy Meal program, which ran from April 12 to May 2 in North America. Customers who purchased a Happy Meal received one of nine Skylanders Giants toys, each featuring their own play feature, as well as a coupon for $10 off the Skylanders Giants starter pack. Figurines included Spyro, Gill Grunt, Drobot, Chop Chop, Ignitor, Jet-Vac, Tree Rex, Crusher, and Kaos. The deal will see the Happy Meals roll out in other select countries later this year.

The Licensing Book • 59

Licensing Expo 2013

Character & Entertainment

CBS Consumer Products Expands Star Trek Brand

CBS Consumer Products manages a portfolio of more than 200 iconic properties.

The expanding popularity of the Star Trek franchise continues this year with the theatrical release of Star Trek Into Darkness, while Hasbro and Namco will lead retail activity that includes nearly 100 new licensees worldwide. A growing publishing program along with initiatives in food and beverage and cobranded collections solidifies the Star Trek brand’s impact on pop culture.

Upcoming licensing programs for NCIS, Elementary, and The Good Wife lead primetime initiatives, while The Little Rascals and The Honeymooners headline Television City properties. The launch of international e-commerce platforms will further CBS Consumer Products’ reach into local markets and improve fan access to top properties.

With the new Star Trek Into Darkness movie, CBS Consumer Products has announced a universe of new U.S. licensing deals that extend the Star Trek portfolio, with products in retail outlets

nationwide. Fans can expect new accessories, apparel, figurines, fragrances, collectibles, and more throughout the year.

3-D Systems will allow fans to create personalized Star Trek figurines through the use of its 3DMe technology.

BioWorld will offer T-shirts and accessories. Buckle Down will create Star Trek-themed seatbelt buckles for release in May. Card.com is slated to release Star Trek debit cards. CDM has created 3-D glasses for the film Star Trek Into Darkness. Checks In The Mail has created Star Trek checks that were released in May. Crowded Coop will design branded pet accessories for later this year. Flashman Studios will create digital avatars. Funko will release Pop! vinyl figurines and Pop! plushies this fall. iCup will manufacture branded housewares for release in June. Palm Beach Beaute will create four fragrances inspired by Star Trek. Power Up/BDA will offer branded cell phone cases. Ruckus GH Inc. has created a Gorn collectible statue that was released in May.

Game of Thrones Is King at HBO

Game of Thrones iPhone case, from Pop!

Game of Thrones is the fastest-growing licensed merchandise property for HBO globally, outpacing Sex and the City and True Blood. Its international retail footprint is also the fastest-growing of all of the HBO show properties, with the online HBO Shop and fine retailers servicing fans in the UK, the U.S., Canada, Ireland, France, Germany, Spain, Italy, Belgium, the Netherlands, and other countries across Europe.

Accounting for 75 percent of sales last year, Game of Thrones is the bestselling franchise in terms of merchandise sales on the HBO Shop Europe and the fastest growing category of mer-

60 • The Licensing Book

chandise sales. In light of the upcoming third season of Game of Thrones, new products have been added to the HBO Shop, including new Pop! figurines, iPhone cases, mugs, and glasses. HBO and Funko have also developed a series of figurines. The Game of Thrones collection debuts with six figures: Tyrion Lannister, Ned Stark, Daenerys Targaryen, Khal Drogo, The Hound, and a White Walker. The figurines are super-stylized and stand 3.75 inches tall.

Game of Thrones figurines, from Pop!

Summer 2013

Licensing Expo 2013

Character & Entertainment

Discovery Expands Brands Based on TV Series

Discovery Communications reaches more than 1.8 billion sub- Moonshiners, Gold Rush, MythBusters, and the TV event Shark scribers in 218 countries and territories, through 155 worldwide Week. The lines will focus on product from categories including TV networks led by Discovery Channel, TLC, Animal Planet, Sci- soft goods, gift and novelty, and publishing. In addition, The ence and Investigation Discovery, as well as U.S. joint venture net- Devils Ride consumer products program’s first licensee, Changes, works OWN: Oprah Winfrey Network, The Hub, and 3net, the will develop a line of apparel and accessories including T-shirts, first 24-hour, 3-D network. Across the Nordic region, Discovery sweatshirts, fashion tops, belt buckles, dog tags, key chains, and owns and operates SBS Discovery Media, a portfolio of 20 TV bandanas. The company is looking to extend the line later this brands featuring nonfiction content and locally produced enter- year to include after-market car and motorcycle accessories. tainment programs, sports, and scripted series and movies. DisTLC has built successful consumer brands around series incovery also provides educational products and services to schools cluding Cake Boss, and has transformed Fridays into “BrideDay” and owns and operates a diversified portfolio of digital media with a lineup of wedding-themed programming anchored by the services, including Revision3.

Say Yes to the Dress franchise.

Over the next year, Animal Planet will continue to build on its Last year, TLC expanded the Cake Boss line with the launch pet program with the debut of new products as well as line ex- of ready-to-sell Cake Boss cakes from Dawn foods, a third cooktensions. Premium Pet Health book from Simon & Schuster, has developed a complete line of and more. The Cake Boss brand all-natural Animal Planet continues this year with new Crunchy and Chewy Dog Treats SKUs rolling out from Dawn that are made with 100-percent Cakes, including ready-to-sell real meat and are grain free. Adcupcakes, cake mixes, and fonditionally, with licensee Fantadant cakes, which will be availsia Accessories, Animal Planet able at grocery stores nationwill debut a line of dry grooming wide. TLC will also launch a line products that have been deof Cake Boss bakeware with signed to provide maximum Meyer, as well as a line of party comfort and safety for groomer goods and stationery, with liand pet. Wet grooming products censee action products. were introduced last year. Other Big Tent has inked several Cake Boss bakeware, from Meyer recent licensees include Foodnew deals that expand the DisScience for nutritional supplement chews for dogs and cats. Mer- covery Kids brand presence both at retail and online while enchSource also continues to expand its lines of pet care products, couraging kids to use their imagination and actively explore the such as bedding and pet toys. real world around them. New deals include partnerships with reAnimal Planet will continue to grow its direct-to-retail part- tail outlets, social media site Kazaana (digital interactive connership with Toys “R” Us by introducing new products to the An- tent), Basic Fun (View-Master), NKOK (arts and crafts and R/C), imal Planet-branded toy line. Animal Planet recently introduced Quality Playing Cards (card games and playing cards), MerchHide & Seek Pets, the first interactive activity app for kids ages 3 Source (inflatable bowling sets, a wall maze, and toy tablets), and up, developed in partnership with Cupcake Digital. The sale Masterpieces (paint your own wooden mobile), and Walgreens of Animal Planet products fund R.O.A.R. partnerships with or- (outdoor activities assortment). ganizations that protect domestic animals, wildlife, and their Big Tent will look to expand the licensing program for Dishabitats. covery Kids in the following categories: video games, electronics, Discovery Channel will expand its merchandising programs apparel, home décor, outdoor sport, toys, food, and promotional inspired by many of its top-rated broadcast programs, including partnerships.

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Character & Entertainment

The Licensing Shop Showcases Zelfs Moose Toys will debut its new proprietary girls’ brand, The Zelfs. The Zelfs line, represented by The Licensing Shop Inc., will roll out this fall with small, medium, and large dolls featuring 12 key characters and play sets. Each character is uniquely identified by their “spiketacular” hair and special power represented by a Zelfmark. Each Zelf comes with hair accessories, including extensions, clips, and brushes, which can be worn by The Zelfs or Zelfs’ little keepers. Chaser Zelfs will be included in the program to drive interest and excitement. The launch of the program will be supported with a marketing campaign, including TV advertising, a website, social media, webisodes, live events, and public relations outreach.

Get Set Games Inc. will debut its proprietary Mega Jump and Mega Run brands, along with the star character Redford. Get Set Games will be looking for both licensing and entertainment partners to bring Redford and his friends to life outside of their game world.

Other properties to be shown are The Trash Pack, Dino Dan: Trek’s Adventure, and Wibbly Pig. The Zelfs

Nelvana Launches New Beyblade Brand

Nelvana Enterprises, together with d-rights, Inc., is re-launching its hit boys’ action Beyblade brand with Beyblade: Shogun Steel, a complete brand refresh that will feature a new TV series, toy line, and extensive retail promotions. This fall, master toy partner Hasbro will launch a new toy line, BeyWarriors, that focuses on battling spirits. Next year will see further brand expansion taken from the animated series and will reflect even more play patterns and toy innovations. The Beyblade franchise is now in more than 80 countries with more than 200 licensees, and Beyblade has consistently ranked as the No. 1 battling toy brand for kids.

Hit Entertainment Makes New Friends for Thomas

This September, Hit Entertainment will debut the latest Thomas & Friends direct-to-DVD, feature-length movie, King of the Railway (Lionsgate Home Entertainment). Movie-inspired toys from Fisher-Price will be available across three different train systems for the first time. Partners including Mega Brands, Ravensburger, Random House, and Egmont will create more than 65 tie-in King of the Railway-themed products across books, games, engines, play sets, apparel, bedding, and accessories. A King of the Railwayinspired app and a dedicated microsite with new games and character reveals will extend the brand experience to digital and social media.

Mike the Knight launches in the key categories of toys, publishing, and home entertainment this year. Fisher-Price rolled out Mike the Knight toys globally starting this spring. The first Mike the Knight home entertainment title, Knight in Training, hits U.S. retailers in June. A new

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Mike the Knight game app will also be released in June. Global publishing partner Simon & Schuster will launch Mike books at nearly all major retailers in the U.S. and the UK. In the U.S., Mike the Knight continues its consumer products launch with new categories, including party goods, puzzles, costumes, and a full apparel and accessories line.

Fireman Sam rolls out new CGI-animated episodes, and a feature-length special has been greenlit. Master toy licensee Character Options continues to roll out a range of toys internationally, including play sets, vehicles, and figurines.

Hit is launching the Barney 25 Million Hugs campaign (www.ShareBarneyHugs.com). The campaign will also support the launch of a new Barney toy line from Character Options at Toys ”R” Us in the U.S. this fall.

The line includes figures, play sets, and plush.

Mike the Knight

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Nickelodeon Consumer Products Grows with New Properties

Nickelodeon Consumer Products (NCP) will show a portfolio based on popular entertainment brands for preschoolers, kids, and adults. NCP represents properties including SpongeBob SquarePants, Dora the Explorer, Teenage Mutant Ninja Turtles, Team Umizoomi, and Bubble Guppies.

Nickelodeon will extend the brands’ presence across all retail channels with movie-branded products timed to Paramount Pictures’ 2014 major theatrical releases of Teenage Mutant Ninja Turtles in the summer and SpongeBob SquarePants, set for holiday release.

Nickelodeon is also set to launch new merchandising and promotional programs for Peter Rabbit and Dora and Friends. Peter Rabbit was launched as a re-imagined CGI-animated preschool series based on the Beatrix Potter children’s books. The upcoming series Dora and Friends is an animated Dora the Explorer spin-off starring Dora as a 10-year-old who goes on city adventures with a group of new friends.

Nick celebrates international preschool phenomenon Dora the Explorer with a toy and licensing program that includes products from Mega Bloks, Fisher-Price, and Briarpatch, including Skate & Spin Dora & Boots, Dora Sizzling Surprises Kitchen, and Dora the Explorer Carnival Fiesta Game. SpongeBob SquarePants will introduce a new line of SpongeBob Hot Wheels from Mattel, a Krusty Krab Playset from Imaginext, and more. Additionally, Nickelodeon will unveil products and new merchandising partners for Teenage Mutant Ninja Turtles, Bubble Guppies, and Team Umizoomi.

Nickelodeon will also showcase two upcoming preschool series for the 2014 and 2015 retail seasons. Paw Patrol stars a pack of six heroic puppies, who are led by a tech-savvy 10-year-old boy named Ryder, with curriculum that focuses on citizenship, social skills, and problem-solving. Blaze and the Monster Machines is a preschool show that features a curriculum dedicated to all areas of STEM (science, technology, engineering, and math). The series follows an eight-year-old boy named AJ and his monster truck, Blaze, on adventures.

Sesame Workshop Continues to Expand

Sesame Workshop continues its partnership with Hasbro. Products from Hasbro’s Playskool brand will feature a full range of Sesame Street characters. Fans can look forward to Big Hugs Elmo, which can actually hug kids back, and the Sesame Street Roads & Rails collection, which includes three vehicle-themed play sets featuring Elmo, Ernie, or Cookie Monster.

Sesame Workshop has partnered with Qualcomm and created the app Big Bird’s Words, available this year. This app will feature the first use of Qualcomm Vuforia augmented reality platform’s text-recognition capability. Within the app, children are guided via the use of a virtual “wordoscope” to search for and find new words in their environment.

This year marks the 30th anniversary of Big Bird in China, the iconic one-hour special that aired on CCTV in China and on NBC in the U.S. Sesame Workshop will celebrate with special events, a social media campaign, and online activity. Sesame Street’s Big Bird Looks at the World, which is produced with Shanghai Media Group’s Toonmax Media, will continue to air. Through the lens of scientific investigation, children are encouraged to ask questions, make observations, and form conclusions in this 100-percent locally produced TV series.

A new indoor themed ride, Sesame Street Spaghetti Space Chase, debuted at Universal Studios Singapore. Guests onboard this highflying adventure will find themselves fully immersed in fun surroundings, special effects, and their friends from Sesame Street.

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Continues Multi-Platform Success

Nerd Corps Entertainment will focus on supporting the boys’ publishing. action-comedy series Slugterra, which launched in the fall in the Jakks Pacific’s first wave of Slugterra toys hit U.S. and continues to roll out globally on Disney XD on pay TV, retail in February across the U.S. with a product with free TV launches throughout this year. line centered on collectibility, transformation, Slugterra Collectible Slugterra is a science-fiction adventure series set deep under- and role play. Jakks will add to the existing col- Figures, from Jakks Pacific ground, where Eli Shane and his friends explore and protect the lections, as well as expand the line to incorporate caverns of Slugterra while collecting, training, and dueling with figures and vehicles. magical creatures called slugs. They must all work together to “We are pleased with the reception our Slugterra toy line has stop the evil Dr. Blakk. received at retail,” says Michael Wilde, senior director of marSlugterra had a great launch keting, Jakks Pacific. “The toys on Disney XD in the U.S. and began hitting stores in midhas been a top performer for the February and performed network, airing an average of strongly out of the gate. We 10 times per week with new continue to see demand grow episodes continuing to air week over week on all items throughout the year. Internaand we are currently chasing tionally, the show is rolling out re-orders. Overall, the line conthroughout this year, and has tinues to perform exceptionally performed extremely well in well and we expect to see the the territories where it has brand continue to grow and launched. Nerd Corps’ distriperform through spring and Eli Shane shooting Burpy bution team is continuing to into fall 2013.” lock down terrestrial broadcast around the world, which started The first Slugterra DVD, Slugterra: Return of the Shane, perthis spring and will continue into next year. To date, the series formed extremely well with its launch in the U.S. by Shout! Fachas launched throughout Latin America, Australia, Canada, tory on February 12, and has since been released by eOne in India, South Africa, Turkey, Poland, Spain, France, Germany, Canada on May 14. Shout! Factory has set the street date for the Switzerland, Austria, Italy, the UK, Benelux, the next edition, Vol. 2, Slugterra: Slugs Unleashed, for June 18.

Nordic region, Taiwan, Hong Kong, and Malaysia.

Slugterra also has a robust interactive offering, including BatToys and home video launched in February in tle for Slugterra, a major online flash game; and Slug it Out, a topthe U.S., with apparel from Hybrid and Mad performing action-puzzle game for iPhone, iPad, and iPod touch.

Toys will begin to hit store shelves in Europe, Asia Pacific, and Dog to release in the fall. Nerd Corps will Latin America this fall. International agents signed on for the announce several new deals this summer, including a trading card game partner. Mean- brand to date include CPL (Latin America and the Caribbean), while, the company will continue to focus on licens- Megalicense (Russia), Elastic Rights (Spain, Portugal, France, ing across all product categories in the U.S. and Greece, and Turkey), CPLG (the UK), Haven Licensing (Australia internationally, including apparel, toys, youth elec- and New Zealand), Character Licensing and Marketing (South tronics, back-to-school items, soft goods, gaming, and Africa), Brand is Real (Israel), and MBC (the Middle East).

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Warner Bros. Consumer Products Stomps into Licensing Show

Warner Bros. Consumer Products (WBCP) stomps into Licensing Show with a lineup of licensees to support the studio’s beloved properties. One of the most iconic monsters in the world is scooping up licensing partners as the 2014 anticipated movie Godzilla has a roster of licensees set to create product in a variety of categories, including toys and figures, apparel and accessories, costumes, and publishing.

Mattel, Man of Steel’s global master toy licensee, offers a toy line, including action figures, vehicles, play sets, and collectible figures. Lego, Rubie’s Costume Co., and Under Armour, among others, offer fans more ways to be immersed in the excitement surrounding the film.

Licensees are also in support of this summer’s 300: Rise of an Empire, which will build on the legacy of 300. Among the partners are Noble with prop replicas; Museum Replicas with replica costumes; Changes with T-shirts and accessories; Trends with posters and calendars; Funko with figures and bobbleheads; and Tonner with collectible dolls.

Master toy partner Jazwares, as well as MatMan of Steel tel and USAopoly, are among the partners Superman helping to honor the 75th anniversary of The Movie Master action figure, Wizard of Oz. New licensees signed on from include Dylan’s Candy Bar, PhilosoMattel phy, Julep, Kurt Adler, and Accutime, offering a range of products from candy and beauty to décor and accessories.

The new TV property Teen Titans Go! has inspired a licensing program with support from master toy partner Jazwares, and many others. Remaining one of the most popular comedies on television, The Big Bang Theory leads a TV licensing lineup, with support from Hot Topic, Ripple Junction, and more.

The Wizarding World of Harry Potter, a fully immersive themed environment for the entire family at Universal Orlando

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Resort in Florida, is set to open at Universal Studios Hollywood and Universal Studios Japan. Harry Potter: The Exhibition, currently headed to Tokyo and with more stops planned for this year and beyond, continues to bring the Harry Potter experience around the world with an interactive exhibition highlighting artifacts from the Warner Bros. films based on J.K. Rowling’s book series.

New partners have signed on to support DC Comics properties, including Lauren Moshi with a high-end casual female apparel collection and Pez with candy dispensers inspired by the Justice League.

Following the success of the Domo DC Comics vinyl collectibles earlier this year, branded entertainment company Big Jazwares’ Dorothy doll Tent Entertainment and WBCP, on behalf of DC Entertainment, have signed a new licensing agreement with License 2 Play to help Domo take on his favorite DC Comics Super Heroes as plush collectibles.

The viral sensation Domo will don the iconic attire of many DC Comics Super Heroes. The line includes collectible plush that range from clip-ons to large plush with Domo portraying Superman, Superman (Clark Kent), Batman (The Dark Knight), Batman (Classic), The Flash, and Green Lantern.

Pretty Ugly LLC and WBCP, on behalf of DC Entertainment, have entered into a co-branded collaboration with DC Comics Super Heroes and Uglydoll characters. Gund, a division of Enesco, will produce collectible superhero plush based on the DC Comics and Uglydoll characters. The initial release this fall will be a trio that includes two versions of Ice-Bat as Batman and Babo as Superman.

Funko will also offer a collection of vinyl figures based on the DC Comics and Uglydoll plush collaboration. Additional categories of merchandise and collaborative characters will be announced in the coming months.

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Character & Entertainment

DreamWorks Shows Animated Properties

DreamWorks Animation (DWA) is now a hub for family-friendly intellectual properties on a global scale as the studio’s portfolio of new and classic franchises offers opportunities across all categories. Led by master toy partner Mattel, the studio’s next franchise, Turbo, races into theaters July 17, followed by the debut of Turbo F.A.S.T., exclusively on Netflix this fall.

Properties inspiring theatrical and television franchises, including Turbo, Madagascar, How to Train Your Dragon, and The Croods, will lead the charge at retail along with classic properties Olivia and Where’s Waldo?, which is currently celebrating its 25th anniversary.

DWA continues to build on its robust roster with new programming for feature films and franchises highlighted by a trio for 2014: Mr. Peabody & Sherman (March 7), How to Train Your Dragon 2 (June 18), and Happy Smekday! (working title, November 26). B.O.O.: Bureau of Otherworldly Operations and Trolls are poised to make their mark with audiences and at retail.

Opportunities with Viz Media

Viz Media has merchandising rights available for its properties, including Naruto, Tiger & Bunny, Berserk: The Golden Age, and Nura: Rise of the Yokai Clan. The company will also showcase Inuyasha, Death Note, Zetman, K, Naruto Spinoff: Rock Lee & His Ninja Pals, and Accel World.

Viz Media is interested in licensing these properties in the following categories: food and beverage, household, toys and games, digital content/gaming, and fashion and apparel.

the characters from Turbo, in theaters July 17

SMC Entertainment Signs New Jungle Book Licensees

SMC Entertainment Group, Inc. (SMC) continues to grow its diverse portfolio of licensees for the 3-D, CGI-animated series The Jungle Book. Currently airing in 165 countries around the world, the property continues to expand and diversify its licensing offerings with six new partners. The Jungle Book and SMC’s other properties, including Angry Little Girls!, H20 Just Add Water, and Dance Academy, will be on display at the International Licensing Expo.

SMC Entertainment has recently signed the following U.S. licensees: Inkology for stationery and activity products; KellyToy USA, Inc. for amusement plush characters; Newcastle Fabric for fleece blankets and kits; Newco International for children’s upholstered furniture, bean bags, bean bag chairs, toy boxes, foam furniture, adult furniture, nightstands, desks, and dressers; and LA Rugs for children’s play rugs.

SMC continues to expand the licensing program for H2O: Just Add Water, internationally distributed by ZDF Enterprises. The licensing program targets girls ages 6 to 12. The Teen Nick television series is available for the first time on DVD at all major retailers and digital content providers by Cinedigm. SMC Entertainment recently signed U.S. licensees, including Goodie Two Sleeves for T-shirts, beach bags, and pillows; California Costume Collection, Inc. for children’s Halloween costumes and wigs; and Zazzle for customizable products including hoodies, T-shirts, skateboards, posters, mugs, postage stamps, and more. The consumer products program is currently available in more than 140 international territories with plans to continue to expand in new markets.

CGI-animated series The Jungle Book

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Character & Entertainment

AGP Adds New Properties

American Greetings Properties (AGP) has new initiatives for its properties in the U.S. and abroad this year. The Care Bears, set high above Earth in the enchanted land of Care-a-Lot; Strawberry Shortcake, which recently introduced a new character, Huckleberry Pie; and Holly Hobbie, a brand with more than 40 years of heritage, serve as the cornerstone brands for AGP. Newer properties such as Boofle, a puppy made out of Grandpa’s sweater; Packages from Planet X, a comedy-filled mystery for boys ages 7 to 11; and The WotWots, a preschool property that focuses on a brother-and-sister alien duo as they explore their new surroundings on Earth, round out the AGP portfolio.

Design Studio by American Greetings offers an extensive art library that contains illustrations, graphic design, photography, and editorial designed to help sell products at retail. Offering everyday, seasonal, and holiday designs that are relevant and on trend, Design Studio shows manufacturers how to use design in a way that is more about making a “lifestyle connection” than just licensing a pretty pattern or design. Design Studio also works with retailers looking for exclusive seasonal themes for private-label programs.

Hasbro Expands Global Brands

Hasbro continues to innovate and aggressively extend the reach of its global brands, including Transformers, Nerf, My Little Pony, Littlest Pet Shop, Monopoly, Play-Doh, Tonka, Magic The Gathering, and Furby. At Licensing Show, Hasbro will present branded play statements, bringing them to life across all categories from fashion apparel, publishing, digital gaming, domestics, and youth electronics to plush, novelty, and trading cards. Aurora is releasing 24 My Little Pony styles, including 12 small ponies with personalized carrying bags (Fancy Pals style) and six soft plush ponies available in 6.5inch and 10-inch styles.

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41 Entertainment

41 Entertainment will showcase Pac-Man and the Ghostly Adventures at Licensing Show.

41 Entertainment has more than 40 licensees.

Recent additions to the Pac-Man family are BBC International, for North America; Hybrid, for North America; Blues Clothing, for the UK; Sun City, in France, for apparel; Bandai, K’nex, and Commonwealth, for toys; Namco Bandai Games, for video games and digital; and VMC Accessories, for fashion, accessories, and headwear in the UK and Eire.

Moshi Monsters Celebrates Five Years

Mind Candy celebrates five years of Moshi Monsters at this year’s Licensing Expo. The brand has more than 80 million registered users across 150 territories and $250 million in total gross retail sales across all Moshi Monsters product to date. Moshi remains the No. 1 licensed property in the UK (according to The NPD Group) and is the No. 1 monthly kids’ magazine in the UK. To date, more than 170 million Topps trading cards and 90 million of Vivid’s Moshlings figurines have been sold globally, and more than 2 million Penguin books have been sold in the UK. There’s more to come from Moshi Monsters this year, including the launch of its first movie, a new 3DS video game, and new experiences on touch-screen devices set to launch throughout 2013 and beyond.

Mind Candy will also be showcasing plans for popular breakout character, Poppet.

Summer 2013

Entertainment One Presents Children’s Properties

Entertainment One (eOne) will present global opportunities for its books, and DVDs debuted at retail. Evy has been signed as apportfolio of children’s properties, including Peppa Pig, Ben and parel partner, and its clothing collection for girls is now available in the U.S. Fisher-Price will debut Holly’s Little Kingdom, Humf, new items in the toy range this year.

Justin and the Knights of Valour, In the UK, Peppa Pig will mark and Janet and John, at the Licensing the brand’s 10th anniversary next International Expo. year with scheduled activities.

Peppa Pig has expanded into inBen and Holly’s Little Kingdom ternational markets by securing merchandise will launch in Spain strong broadcast partners and lithis year, where toys and publishing censing agents in key regions where will kick-start the licensing program. the show achieves high ratings. The Broadcasters Clan (Spain) and RAI past 18 months have seen Peppa-liPeppa Pig (Italy) have signed on for the second censed merchandise launch in the series, and Eurodata TV figures reU.S., Australia, Spain, Portugal, Italy, CEE, Russia, Scandinavia, and Greece, with retail launches cently placed the show as the fourth most-watched program in poised this year for Asia, Benelux, New Zealand, and Canada. Germany on KiKA for kids ages 3 to 13. In the UK, the property There are plans for licensed merchandise in Latin America next has 36 licensees and has extended into live and digital events with last year’s launch of its first live stage show and release of its first year.

The U.S. licensing program follows a nationwide exclusive app. eOne is debuting a new look for the product range, with a rewith Toys “R” Us last year, when the brand’s first line of toys, freshed color palette and logo on packaging.

Sega Is Super Sonic

Starting at this year’s Licensing Show, Sega will lay the foundation for a massive multi-tiered campaign for the Sonic brand, including new games, merchandise, and more surprises soon to be announced. Sega Licensing is looking for a full slate of partners across all categories with a concentration on toys, apparel, bed and bath, food and beverage, and amusement. The campaign will also set its sights on Latin America for expansion as Sonic increases its footprint around the globe. This year, the Sonic brand will see new video game titles and merchandise slated to close out the year. Also on tap at this year’s Licensing Show is a celebration of the 25th anniversary for the Sega Genesis gaming console.

Summer 2013

C3 Entertainment Stays Classic

C3 Entertainment Inc., owner of the The Three Stooges brands, has signed with Image Entertainment Inc. for The Three Stooges Cartoons DVDs for the home-entertainment market.

The classic Three Stooges were used in a new, national multimedia ad campaign for Quilmes Beer, the top-selling beer brand in Argentina. The campaign began in October 2012 and runs through April 2013.

New Three Stooges classic licensees include Mutual Sales (beach towels), Panini (trading card set), Trevco Sportswear (digital, on-demand T-shirts and Zippo lighters), Liquid Blue (tie-dyed and screen-printed tees), American Mint LLC (commemorative memorabilia, including collectible coins, knives, and baseballs), CARD.com (prepaid debit Visa cards), Sunset International (loungewear), BZB Products LLC (reusable folding drinkware), Three Stooges mobile content from Bare Tree Media (mobile content for iOS and Android), and Merch Makers Inc. (ties).

C3 also represents the Grizzly Adams Brand, Monica Warhol, Arrow Classics, and Barbi Benton.

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Sony Pictures Entertainment Seeks Partners for Smurfs and More

Sony Pictures Entertainment (SPE) seeks promotional partners, licensees, and/or retail partners for The Smurfs 2, The Mortal Instruments: City of Bones, Cloudy 2: Revenge of the Leftovers, Popeye, and Ghostbusters.

In the hybrid live-action/animated family blockbuster comedy The Smurfs 2 (3-D), the evil wizard Gargamel creates a group of mischievous Smurf-like creatures called the Naughties to harness the all-powerful, magical Smurf-essence. The film is due in theaters July 31.

In the interactive space, The Smurfs 2 licensing program includes Beeline, which is continuing to update and revamp its Smurfs Village mobile game. Ubisoft will have games for both console and handheld, along with a new social game for Facebook.

Zuuka will offer electronic books for iOS and Android devices.

Goldy Toys has created collectible characters with an interactive augmented reality component.

In the apparel and accessories category, Junk Food is back with classic tees. Thursday Friday has designed high-end totes, handbags, and scarves inspired by the classic Smurfette character.

In the consumables category, Haribo has made gummy snacks to be sold worldwide, and Bakery Craft offers cake decorations.

Bendon Publishing has created coloring and activity books, and Simon & Schuster has brand new storybooks, readers, and a novelization to go with the second film.

Trends has wall calendars, paper and lenticular posters, bookmarks, and stickers. Pioneer offers latex and foil balloons.

In the toys and games category, Jakks Pacific will celebrate the release of The Smurfs 2 with a new lineup of collectible figures, plush, fashion dolls, and play sets. Jakks will introduce The Smurfs Micro Village, a line of highly detailed 1-inch figures and play sets with connecting platforms that allow collectors to expand and bring the Smurfs Village to life. The Smurfs product line will be available at Toys “R” Us, Target, Walmart, and Kmart.

Pressman Toy has created board games, card games, and puzzles. USAopoly will offer a Monopoly game based on the classic Smurfs characters. Build-A-Bear Workshop will sell stuffable plush with apparel, accessories, and sound chips.

The Mortal Instruments: City of Bones is the story of a seemingly ordinary teenager who discovers she is the descendant of a line of Shadowhunters, a secret cadre of young half-angel warriors

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locked in an ancient battle to protect our world from demons. The film is available for worldwide licensing partners. North American promotions will be handled by Screen Gems, and international promotions will be through Mister Smith Entertainment.

The film is due in theaters August 23.

The CG-animated Cloudy 2: Revenge of the Leftovers, due in theaters September 27 in the U.S., is the sequel to the 2009 film Cloudy with a Chance of Meatballs. In the wake of the disastrous food storm at the end of the first movie, Flint Lockwood and friends are forced to leave their town of Swallow Falls, but when it is discovered that foodimals have overrun the island, they are asked to return to save the world again. SPE has opportunities for worldwide promotions and licensing.

Popeye (3-D) tells the origin story of the world’s first superhero, Popeye the Sailor Man. In this all-animated CGI tale of Popeye’s first sea adventure, the lovable, lower-class Popeye must team up with his least likely companion—the upper-class Olive Oyl—on a mission to find his long-lost Pappy. SPE has opportunities for worldwide promotions and licensing with certain restrictions.

The film is due in theaters next September.

SPE has opportunities for worldwide licensing targeting the Ghostbusters core fan base. The program continues to add partners who recognize the strength and longevity of the brand.

Plush Smurf and Smurfette, from Jakks Pacific

Summer 2013

Licensing Expo 2013

Character & Entertainment

Saban Brands Celebrates Power Rangers’ 20th Anniversary

Saban Brands will be opening international offices in Europe and Asia later this year. The company also merged its international and domestic licensing and merchandising teams to create a Global Consumer Products division.

Saban Brands is celebrating the 20th anniversary of the Power Rangers franchise this year. The company kicked off its year-long celebration with the debut of its all-new series on Nickelodeon, Power Rangers Megaforce, early this year. With more than 190 licensee partners, the brand is providing Power Rangers Megaforce-licensed products, as well as creating limited-edition 20th Anniversary and “throwback” Mighty Morphin Power Rangers products.

The Paul Frank property has proven itself as a fashion and lifestyle brand with more than 150 strategic partnerships and collaborations. In addition to retail partners in-store and online, Paul Frank product is available in its more than 60 stand-alone stores around the world.

Following the announcement of its acquisition of Zui.com, Saban Brands plans to globalize the property by launching the first worldwide network of kid-connected sites with powerful parental controls. Saban Brands’ digital arm, The Playforge, continues to expand with new games, including Eat Eat Hooray!, which launched last month, and multiple upcoming titles to be released this year.

Saban’s new animated series, Digimon Fusion, will air on Nickelodeon this year. Additionally, the company will debut Julius Jr., a new animated preschool series inspired by the Paul Frank family of characters, this year on Nick Jr. in the U.S. Also for Julius Jr., Saban Brands has partnered with Fisher-Price, which will serve as the global master toy licensee. On TV, Vortexx airs on The CW for five hours each Saturday. Saban Brands has made this action, adventure, and comedy entertainment property available to kids all week long through MyVortexx.com.

The site features hundreds of episodes to watch online, tons of games, points, and rewards.

Zodiak Kids Signs Licensees for Tickety Toc

More than 40 licensees around the world have signed on to Zodiak Kids’ Tickety Toc licensing program. Product is about to launch in key markets including the UK, the U.S., Canada, and Australia across key categories including toys, publishing, DVD, and apparel.

In the UK, master toy partner Vivid Imaginations will be launching a range of toys in July, while master publishing partner Igloo books will release titles in June. Apparel (Blues/Cooneen & Miserli) and DVD (Anchor Bay) follow this fall. North American agents, Established Brands (U.S.) and Studio Licensing (Canada), have appointed Just Play LLC as master toy partner. Initial toy lines will debut at retail this fall in the U.S. and Canada, as will publishing (Scholastic) and DVDs (Anchor Bay). Mega Brands has been signed for puzzles, Franco for bath and bedding, and Cupcake Digital for mobile apps. In Canada, Studio Licensing has appointed NTD (apparel), Calego (luggage/bags), and Paris Geneve (sleepwear). In the U.S., Established Brands has signed Bentex (apparel), Berkshire (accessories), and Fast Forward (bags). Launches will be supported with heavyweight retail marketing campaigns.

In Australia, Tickety Toc is represented by Fusion Licensing, which has secured a number of licensing partners, including Hunter Products as master toy licensee.

Tickety Toc products will be available at retail in Australia this fall.

The official Tickety Toc website, www.ticketytoc.com, launched in May. Designed for mobile, desktop, or tablet, the website will feature games and competitions, as well as a product section with direct retail links. In addition, the Tickety Toc social media campaign has commenced with official Facebook and Twitter feeds launched in March.

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Licensing Expo 2013

Character & Entertainment

Kidz Bop Releases Newest Volume

Kidz Bop has new promotional partnerships, licensing agreements, consumer products, and live events. The newest volume in its audio series, Kidz Bop 24, will be available on July 16.

Kidz Bop is supporting the release with a national TV campaign, high-impact online advertising, national radio campaigns, and more.

With the release of Kidz Bop 24, Kidz Bop and Sonic will launch a four-week My Wacky Pack Kids Meal promotion in August, featuring a free song download for each Kids Meal purchased, in-restaurant signage, on-pack promotion, and custom online content.

Kidz Bop has partnered with Church & Dwight Co. Inc. to launch a new line of musical toothbrushes. Kidz Bop and LeapFrog continue to distribute monthly downloadable content through LeapFrog’s digital app center for LeapPad 1, LeapPad 2, Leapster GS, and LeapReader platforms. The Kidz Bop Imperial Toy Pop Star toy line and Sakar Kidz Bop youth electronics line will continue to roll out in the U.S. and Canada throughout the year.

Kidz Bop is teaming up with Six Flags to kick off its fourth annual Kidz Star USA Talent Search, where kids ages 15 and under can audition live by participating in this summer’s 10city Official Live Audition Tour at Six Flags Theme Parks.

KidzBop.com will be accessible via mobile devices this June with the launch of Kidz Bop Mobile. Following the mobile launch, Kidz Bop-branded apps will be released across multiple platforms.

The Kidz Bop Live Experience has more than 25 live appearances and events booked in major markets throughout the U.S. Kidz Bop has partnered with The Agency Group to bring the Kidz Bop Live Experience to cities across the country.

Paradox Presents Conan, Spartacus

Technicolor Presents The Deep

Technicolor will present a new children’s property: The Deep. Technicolor has been in development on an animated TV adventure series, which was debuted to international TV buyers earlier this year. The company plans to develop a global consumer products program for the property, which targets kids ages 8 to 12.

The Deep is based on the international graphic novel series of the same name, created by writer Tom Taylor and illustrator James Brouwer and published by Gestalt Comics. The new TV series, currently in development on 26 halfhour episodes, follows the Nekton family of adventurers, who explore unchartered areas of the Earth’s oceans, seeking to unravel the mysteries of the fantastical deep sea.

Paradox Entertainment will be presenting an array of entertainment properties, including Conan the Barbarian. A new motion picture is in development with Universal Studios and many new products will be released this year, including collectibles, publishing, and games.

Spartacus (Starz Entertainment LLC) expands with the new season, Spartacus: War of the Damned, sold into 150 countries. New releases this year include the Spartacus: Legends video game from Ubisoft for XBLA and PSN. Mutant Chronicles, the ‘90s video game property, will have updated storylines and new artwork developed by new licensees Modphius Games and Prodos Games, making this retro property Conan the Barbarian contemporary with its diesel punk fashion style.

Paradox Entertainment is also representing NBC/Universal/SyFy’s hit TV shows such as Battlestar Galactica, Warehouse 13, and Face-off. Battlestar Galactica is celebrating its 35th anniversary this year.

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ITV Expands Licensing Programs Globally

ITV Studios Global Entertainment’s (ITVS GE) licensing program includes Classic Thunderbirds, Coronation Street, and Hell’s Kitchen USA brands, as well as its third-party representations: ZeptoLab’s Cut the Rope, Platinum Films’ Matt Hatter Chronicles, and Nelvana’s Babar.

Cut the Rope’s worldwide licensing program includes webisodes, TV partnerships, promotions, accessories, plush, apparel, publishing, and costumes. Platinum Films’ The Matt Hatter Chronicles consumer products program is due to launch next spring with licensees including Character World, TDP Aykroyd, Pedigree Books, VMC, Brand Mania, and Trademark Collections. These signings join global partners Topps, Titan, and Penguin.

Toon Studio Gets Royal The Toon Studio of Beverly Hills is launching Once Upon a Zombie and Fairy Tale High. Once Upon a Zombie features zombified fairy tale favorites, including Snow White, Cinderella, and Sleeping Beauty. WowWee has been granted the master doll license for worldwide distribution.

Fairy Tale High features fashionable teenage renditions to fairy tale favorites who attend Fairy Tale High, a performing arts high school. Toon Studio has signed SK Victory as the master doll and accessories licensing partner for North America. Toon Studio will launch children’s book packages for both brands by Susan Knopf.

This year, Babar celebrates its 80th birthday in the UK. ITVS GE and Highlight PR are coordinating celebrations and consumer PR. New Babar vintage licensees will distribute French and U.S. product and support existing UK publishing partners Egmont and Abrams (Chronicle Books). Celebrations that have taken place in France and the U.S. range from book storefront brandings and museum exhibitions to special appearances by Babar and an exclusive Babar menswear collection from Soulland at the Colette shop in Paris and Goodhood in London.

For the Thunderbirds 50th anniversary, ITV Studios and Pukeko Pictures, in collaboration with the Weta Workshop, will co-produce children’s series Thunderbirds Are Go! (working title) on ITV and CITV in the UK in 2015.

Firefly Seeks Opportunities

Firefly Brand Management’s portfolio includes brands such as ABC/Disney’s Revenge and Scandal brands, Etch A Sketch, Tapatio, and Spam/Hormel Brands.

Let God Work, a new brand with significant cross-collaboration with Christian rock bands and fashion-forward designs, has signed Enesco/Gregg Gift for a broad spectrum of categories.

Firefly’s other brands are also seeking licensing opportunities, including Anne Geddes for iPhone skins, dolls, and plush categories; Yummy You brand

by Twinkle Chan for craft companies; Fox’s Hell’s Kitchen for kitchen and tabletop categories; and The Village People for apparel and gift partners.

Subway Surfers is seeking partners for toys and sporting goods, while Planet Sock Monkey is seeking partners for apparel and accessories.

Size Matters, Mr. Bubble, Secret Millionaires Club, Stan Lee’s Mighty 7, Raskullz, Skippy Peanut Butter, Sprout’s TV series Chloe’s Closet, and CGI-animated Sabrina, Secrets of a Teenage Witch are available for licensing in all categories.

Hello Kitty scarf, from Twinkle Chan

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Licensing Expo 2013

Character & Entertainment

Delta Children Expands Toddler Collection

Delta Children’s toddler collection continues to grow with new Disney licenses set to launch this summer, including Doc McStuffins and Sofia the First, as well as Monsters University and Planes, coinciding with their movie launches. Delta will offer 3-D beds at Toys “R” Us, a new set at Walmart, twin plastic beds, and a Cars bed—molded to look like Lightning McQueen—by November 1.

Delta’s licensed collections include Mickey Mouse, Minnie Mouse, Disney Princesses, Doc McStuffins, Sofia the First, Jake and the Never Land Pirates, Cars, Monsters University, Planes, Spider-Man, Sesame Street, Dora the Explorer, and Hello Kitty.

Cars and Minnie Mouse are still strong in the marketplace, and Mickey Mouse has made a Doc McStuffins chair, from Delta resurgence. Beds, storage, and upholstered furniture are doing well across the board. Delta currently manages more than 200 licensed items, including beds, table and chair sets, toy boxes and organizers, and upholstered furniture.

Monsters University bed and storage, from Delta

Zodiak Kids CP Paris Represents Pac-Man, Where’s Wally

Zodiak Kids CP Paris, a Zodiak Kids company, has been appointed consumer products and home video agent for France by 41 Entertainment for the upcoming TV series PacMan and the Ghostly Adventures. Namco Bandai plans to invest more than $15 million in the production and launch of a major global toy program.

Where’s Wally? will have a slew of new products and promotions in France in celebration of its 25th anniversary. Luxury swimsuit brand Vilebrequin features Where’s Wally? swimsuits across Europe, Smiffy’s will launch its dress-up range this fall; and Embassy launched the first Where’s Wally? apparel line in France this spring, including boys’ pajamas and men’s boxers. Other partners include Gründ with new stationery lines and Elior with a QSR promotion, branded family menus, a trivia card giveaway, and a branded play area. Gulli TV channel’s magazine and website and Le Journal de Mickey featured search-and-find scenes in October 2012.

Zodiak Kids CP Paris has also further extended its third-party agency business by renewing its contract with The Joester Loria Group for The World of Eric Carle.

Additionally, the new Totally Spies! promotion has started at Versailles, featuring treasure hunts in the gardens, screenings at the Chateau’s auditorium of the Spies! new hour-long adventure in Versailles, as well as a host of other Spies!-led fun and games.

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Licensing Expo 2013

Character & Entertainment

Lawless Entertainment’s Suzy’s Zoo Turns 45

Lawless Entertainment celebrates Suzy’s Zoo’s 45th anniversary this year. Suzy’s Zoo was established by artist Suzy Spafford in 1968 as a line of greeting cards and has grown to feature more than 200 named characters on a range of social expression products. The three brands, Suzy’s Zoo, Little Suzy’s Zoo, and Wags and Whiskers, feature illustrations that use clean, bright, natural colors and realistic shapes creating a familiarseeming and friendly universe.

Duckport, for children ages 2 to 5, features the original characters—Suzy Ducken and her friends Jack Quacker, Penelope O’Quinn, and Corky Turtle. Little Suzy’s Zoo, the infant/toddler brand, features the duckling Witzy and his friends, Boof, Lulla, and Patches. Introduced into Walmart, Target, and Babies “R” Us in the U.S. in 1999, it was a complete line of baby products, furniture, layette, accessories, diapers, and more. In 2005, the Little Suzy’s Zoo characters were introduced into Plaza Style stores in Japan, where the items included cell phone covers, plush toys, apparel, dinnerware, puzzles, games, and books. Wags and Whiskers was created in 1998 as a part of the greeting card and stationery line featuring dogs and cats.

Suzy’s Zoo has expanded its online presence with the launch of its redesigned, interactive website in June 2011. The re-vamped website includes sections about the characters, trivia and puzzle games, and coloring pages to download, print, and color. The flipbook, Rainy Day Friends, was added to the website last February.

In mid-2012, Suzy’s Zoo launched its UK-focused website, www.witzyandfriends.com, with interactive games, puzzles and coloring activities, a crafting section (in collaboration with Joanna Sheen Ltd.), and story time with Suzy Spafford.

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Last year, in conjunction with iStoryTime, the first series of Suzy’s Zoo digital apps were launched for iPad, iPhone, and iPod Touch. The series debuted with Witzy’s Friends Forever. The series promotes literacy with interactivity, animation, and narration, with in-app activities such as “find it” features, coloring books, memory games, and puzzles.

The Suzy’s Zoo Storybook Series App is available on the App Store and includes the first book free of charge. Two other titles are currently available and a total of six titles will be released. In addition to the success of Suzy’s Zoo digital apps, three Nook eBooks and three iBooks have also

launched.

Multiple deals have been concluded, including Pioneer Balloons for latex, foil, bubble, and punchball balloons; Hoffman California Fabrics for 100-percent cotton, screen-printed fabrics; StickerYou for personalized stickers; Joanna Sheen Ltd. for craft items; Flickback Media for greeting cards and calendars; Dalmatian Press for books and coloring books; Fun Rugs for rugs; Suncrest for nursery bedding and accessories; Blue Sky for books; and University Games for board, card, travel, and electronic board games, Colorforms, and jigsaw puzzles.

Lawless Entertainment has also been appointed as worldwide representative for TV production, publishing, licensing, and merchandising for children’s property Raising Maddie. Created by author Suanne-Margaret Hastings, Maddie is a little girl with untamable corky-ginger red hair who keeps friends, family, and caregivers on their toes with her vibrant spirit and a passion for her most prized possession—her magical shoes. Maddie also has a special “Bunky Bag” that comes alive, exposing all kinds of fabulous character shoes.

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Licensing Expo 2013

Character & Entertainment

Masha and the Bear Goes International with Animaccord

Rudolph Turns 50

Animaccord Animation Studios, producers and owners of the animated brand Masha and the Bear, will launch the Masha and the Bear international licensing program. The animated series, targeted at children ages 3 to 9, launched in 2009 and is among the top three preschool brands in Central and Eastern Europe. Every seven-minute, 3-D, CGI-animated episode includes original music and songs. The series occurs largely through action with little dialogue, making it easy for children around the world to understand. The animated series was created in Russia, and to date the series has been dubbed over in German, French, English, and Spanish.

The Masha and the Bear licensing program has more than 100 licensees covering more than 50 product categories. The worldwide licensing program, excluding the U.S., is handled by Ink Brands, while the recently established Animaccord USA Co. will act as the property’s representative across the U.S. Animaccord has also signed on a list of broadcasting, DVD, and other media partners.

Big Tent Shows Domo

Big Tent Entertainment will showcase the Domo brand’s growth into fashion following deals with Good Works Makes A Difference for jewelry, and Yellow Rat Bastard for clothing. Domo is also the name sponsor in this summer’s Vans Warped Tour, which will see the Internet meme rock out in 40 cities across the country. The Domo brand is also celebrating the success of its Domo X DC line, in coordination with Funko (figurines) and License2Play (plush).

Big Tent will feature The Discovery Kids brand again this year, along with PixFusion, Miffy and Friends, and preschool network Sprout, which will debut at the show.

The Rudolph Christmas Special celebrates its 50th anniversary next year, and Character Arts is signing additional, brand-appropriate licensees to help celebrate this golden anniversary showcasing all the characters.

The existing family of more than 75 Rudolph licensees includes Hallmark, Enesco/Department 56, Funko, USAopoly, Briarpatch, Vandor, Bendon Publishing, Flix Candy, Steiff USA, and Publications International, among others.

New licensees include Macmillan Children’s Publishing Group (new book formats); Britto (co-branding with pop artist Romero Britto); Elope (dress up and novelty headwear); Ballet Jewels (fashion accessories); and Kids of America (home décor).

PBS Has Daniel Tiger

PBS’ Daniel Tiger’s Neighborhood is the first and only spin-off of Mister Roger’s Neighborhood, and stars 4-year-old Daniel Tiger and his best friends. The animated preschool series from The Fred Rogers Company (FRC) is working with Out of the Blue Enterprises (OOTB), co-creator of the show and licensing agent for the property, to bring Daniel Tiger and friends to viewers throughout the U.S. Daniel Tiger toys, from Jakks Pacific, are geared toward preschoolers ages 2 to 4, and will roll out to retailers this summer exclusively at Toys “R” Us stores, including plush, collectible figures, a neighborhood trolley, and play sets. OOTB signed with Simon & Schuster Children’s Publishing imprint Simon Spotlight for a wide range of Daniel Tiger books, personalized T-shirts, and more, available on toysrus.com and Ty’s Toy Box. University Games has also signed on for games. Additional categories being considered for licensing include home, health and beauty care, and assorted soft goods.

Plush, from License2Play

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Hot Shots

An Interview with...

Dave Hedrick, Senior Vice President, Global Promotions & Branded Foods, Warner Bros. Consumer Products What is unique about WBCP’s proposition in the clip licensing world?

WBCP has the largest library of film, TV, and animation titles in the industry, featuring a broad collection of genres representing content from entertainment powerhouses, such as Warner Bros., DC Comics, Turner, Castle Rock, New Line Cinema, and HannaBarbera. In 2009, we launched a dedicated commercial clip licensing website, www.WBClipLibrary.com, to provide a powerful search engine enabling clients to explore our library in a variety of ways. The site also offers trailers, one-sheets, printable search results, local WBCP representative details, and a fast and efficient service for general inquiries and rights submissions.

The Clip Library is one of the most comprehensive, creative research tools of its kind for the advertising community. The site is an effective one-stop-shop for professionals in the advertising and creative industries.

How do you attract and maintain clients?

In addition to our largest and best-in-class portfolio, WBCP has a dedicated team of executives focused on commercial clip licensing initiatives. We recognize that the creative process often requires extremely fast turnaround and we pride ourselves on our client servicing.

We always strive to provide feedback on an inquiry within 24 hours and nearly always provide same-day follow-up on submissions. We understand how frustrating it can be for a creative to submit an inquiry to a generic business affairs group at a studio and not receive an immediate response. The creative process just moves too quickly for that. We work directly with our agency clients to help facilitate their inquiries every step of the way and will even brainstorm alternative titles if a requested asset isn’t available. We are com-

Summer 2013

mitted to ensuring that working with WBCP on commercial clip licensing is a swift, straightforward, and satisfying process.

How much has the business grown in the past five years?

Our clip licensing business has steadily increased—both in terms of the number of submissions and revenues. Our international commercial clip licensing business has taken off as well, with significant year-on-year growth reported in key territories, such as Australia, China, Brazil, France, and Japan. Given the quality and size of our library, our client servicing reputation, and unique tools, many agencies prefer to work with WBCP when their creative needs include leveraging a borrowed equity.

Top: Agent Smith from The Matrix, played by Hugo Weaving, as seen in GE’s 2013 Brilliant Machines marketing campaign. Bottom: King Kong as he appears in the TV spot for Twizzlers, which is currently running nationally. (Image courtesy of Twizzlers.)

Where are your opportunity areas?

We are looking at ways to grow our commercial clip licensing business and client base internationally. We have already translated the www.WBClipLibrary.com site into a variety of languages and are constantly working with our international sales teams on ways to facilitate opportunities and provide stellar customer service to their local agency partners.

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Licensing Expo 2013

Character & Entertainment

Evolution Debuts New Properties

As the exclusive consumer products agency for Rubicon Group Holdings (RGH) Entertainment’s portfolio of intellectual properties throughout the global marketplace, Evolution is in development on new licensing programs for Monster In My Pocket, a brand of collectible monsters for boys, supported by a soon-to-be named master toy partner, digital apps and games, and an animated television series, which will debut next fall. Life and Adventures of Santa Claus, a new 3-D, CGI-animated theatrical feature film slated for release next holiday season, will be supported with licensed products in apparel, toys, publishing, and seasonal.

Legends of Oz, Dorothy’s Return, from Summertime Entertainment, is based on the original book series written by Roger Stanton Baum, the great grandson of Oz franchise creator L. Frank Baum. This 3-D, CGI-animated family feature film picks up where the 1939 Wizard of Oz left off and is slated for theatrical release next year, along with a movie soundtrack by Sony Music and the DVD/Blu Ray release from 20th Century Fox Home Entertainment. Evolution is managing the licensing and retail program for the brand, encompassing licensed merchandise, packaged goods, console and handheld video games, virtual worlds, social games, casual games, iPhone and iPad apps, and other mobile experiences for launch concurrent Legends of Oz, with the theatrical release of the film.

Boo Is a Knockout

Knockout Licensing has signed five additional licensees for Boo—The World’s Cutest Dog, the Facebook sensation with more than 6.8 million fans.

Knockout Licensing has signed Bentex Group for girls’ and boys’ swimwear; Department 56 for holiday ornaments, mugs, figurines, and waterglobes; Enterplay LLC for collectible packs that include mini-games, mini-figurines, charms, puzzles, trivia cards, trading cards, stickers, temporary tattoos, and other novelty and collectible items; SGFootwear/SGI Apparel for children’s sleepwear and footwear; and Trends International LLC for posters.

Dorothy’s Return

BBC Offers New Doctor Who Products

BBC Worldwide and Titan Merchandise have announced the release of the brand new Doctor Who Mini Titans. This is a preview of Matt Smith as the Eleventh Doctor, his Tardis, and a Cyberman as menacing as ever. Each figure is 3 inches tall, and several figures come with character-specific accessories. They will be blind boxed to add to the mystery of hunting down and collecting them all.

BBC Worldwide and Underground Toys have partnered for the Doctor Who: Tardis Projection Alarm Clock. This alarm clock projects the time and the Doctor Who logo onto the ceiling via a projector situated on the back. When the alarm goes off, the light flashes and it makes Tardis sounds. The Doctor Who Tardis Projection Alarm Clock stands approximately 4.5 inches tall.

BBC Worldwide and Underground Toys also offer the Doctor Who Trans-Temporal Sonic Screwdriver Prop Replica, which channels screwdrivers from different time periods, including Elizabethan, Victorian, Present Day, and Future London. The Doctor Who Tardis Projection Alarm Clock Trans-Temporal Sonic Screwdriver has eight sound effects and is compatible with the Personalize Your Own Sonic Screwdriver Set (sold separately) to mix and match the pieces in different ways to create your own version.

Doctor Who Mini Titans

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Licensing Expo 2013

Character & Entertainment

Universal Releases Minions into the Market

Universal Partnerships & Licensing brings a slate of properties available for licensing, retail, and promotional partnerships to this year’s Licensing Expo. With the July release of Despicable Me 2, the filmmaking team at Illumination Entertainment have created a new animated adventure featuring Gru, his girls, and his vast army of Minions that has already attracted a number of partnerships with licensees. Thinkway Toys is the global master toy licensee for Despicable Me 2. The product range includes collectible and deluxe action figures, talking special feature figures, plush, an R/C Minion Mobile with lights and sounds, and a Fart Blaster complete with a full range of fart sounds and time delay joke mode. The line will arrive in stores and online this spring. Other licensees include Hasbro and Gameloft.

Leading Universal’s lineup is the spin-off installment of the same successful franchise, Minions, which Illumination and Universal will release on December 19 of next year. The film features SanMinions from dra Bullock as the lead in a voice cast of memorable human charDespicable Me 2 acters who encounter the unpredictably hilarious Minions.

Universal Pictures is planning for the release of the next installment of Steven Spielberg’s groundbreaking film series, Jurassic Park 4. Spielberg returns to produce the action-adventure, which will be shot in 3-D. Illumination Entertainment will also bring audiences a new, original 3-D film in July of 2015 following the box office success of its previous films including Despicable Me, Hop, Dr. Seuss’ the Lorax, and the upcoming releases of Despicable Me 2 and Minions.

Peanuts Coast with Snoopy

Peanuts Worldwide has partnered with Chillingo, a division of Electronic Arts Inc., to bring Snoopy Coaster to the App Store. In the game, players embark on a roller coaster ride with Snoopy and his friends. Help Snoopy speed through loops, barrel through peaks and valleys, jump to collect coins and power ups, and unlock new features.

Twentieth Century Fox will release the first fulllength, 3-D animated Peanuts feature film on November 6, 2015, marking the 65th anniversary of the Peanuts comic strip and the 50th anniversary of the TV special A Charlie Brown Christmas. Charles Schulz’s son Craig Schulz is producing the film and writing the screenplay with his own son, Bryan Schulz and Cornelius Uliano.

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Disney Introduces Planes, Sofia the First Products

Disney has partnered with Thinkway Toys to produce R/C products and flying planes based on characters in the soon-to-release Planes. The line features U-Command Dusty, a full-function infrared control toy with lights, sounds, and animation, and IR Dusty and El Chu. The outdoor flying range features Charge ‘n Fly Dusty, a rechargeable flying plane, and various sizes of gliders, including a Bubble Maker version of Dusty. These lines will be available this summer with Planes 2 slated for release next fall.

Tollytots will introduce Under the Sea SurSofia’s Talking Magical Amulet, from Jakks Pacific prise Ariel, Ariel’s Bath Vanity, the Magical Mermaid Kitchen, and Ariel Musical Light Up Dress based on The Little Mermaid.

Jakks Pacific will lauch a role-play, dress up, and plush line based on Disney Junior’s animated TV series Sofia the First. The line includes Sofia’s Talking Magical Amulet, Sofia the First Transforming Dress, Sofia the First Royal Tiara, and a Sofia the First Soft Doll.

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Licensing Expo 2013

Character & Entertainment

Pukeko Gets Animated with the Wot Wots

Pukeko Pictures’ preschool series, The WotWots, featuring a mix of CGI animation and liveaction, will be represented for worldwide merchandise licensing by American Greetings Properties (AGP). Local agents include Exim Licensing Group Inc. (Latin America), Stella Projects (Australia and New Zealand), Max Licensing (Turkey), Lizenwerft (Germany), and Segal Licensing (Canada).

In the home entertainment space, The WotWots is available on DVD in many territories worldwide. The WotWots is available for digital download in Australia, the UK, and Canada, with an upcoming launch in the U.S. The WotWots are also featured in an iPhone/iPad app, Pocket SpottyWot, which follows The WotWots e-book, Lanky Landing Legs.

Ice Water Press has The WotWots books available in the Australian and New Zealand markets as well as global e-publishing rights for the first season.

AGP is looking to extend the brand’s publishing presence in Europe, North and Latin America, and Asia.

ABC Commercial is Pukeko Pictures’ global partner for live events, with local agents Showtime in Australia, Sphere Entertainment in Canada, Rainbow in the UK, and Milestone in the U.S. Pukeko Pictures and Grand Entertainment Ltd. (GZ) have co-produced entertainment content specifically for the Chinese market.

The Brand Liason Launches New Toons

Bill Schwartz, creator and producer of animated specials, including Snow White and the Magic Mirror and The Secret of the Hunchback, has signed The Brand Liaison to represent North American rights to the newly launched Happy Toon World brand. The brand consists of junior versions of 40 iconic characters, including Little Snow White, Little Cinderella, and Little Frankenstein, as well as holiday characters including Little Santa, Little Nutcracker, and Little Cupid.

The Happy Toon World brand consists of 40 different characters in six distinct collections, including Little Super Hero Collection, Tiny Princess Collection, Little Boy Collection, Little Holiday Collection, Little Animal Collection, and Little Transporter Collection.

To represent Happy Toon World internationally, Schwartz has signed Icon Promotions for Russia, and Empire Multimedia for India, China, Vietnam, Malaysia, Taiwan, Indonesia, Japan, and the Philippines.

The Happy Toon World brand will debut at the Licensing Expo. All characters are immediately available for infant-to-tween licenses, including publishing, apparel, toys, textiles, paper goods, electronic accessories, kitchenware, and lifestyle products. Manufacturers can now license characters such as Little Mermaid, Little Racer, Little Puss N Boots, Little Santa, and Meso-Batty.

Little

Striker Features Divergent

Striker Entertainment will feature several new blockbusters at this year’s Licensing Expo including Divergent, the latest feature film franchise from Summit/Lionsgate based on the book series by Veronica Roth; and Catching Fire, the November 22 film sequel to The Hunger Games, which was recently nominated for four LIMA Awards, including Best Overall Licensed Program of 2012.

Striker will also feature AMC’s The Walking Dead, which returns this fall for its fourth season and is currently supported by more than 25 licensees; Need For Speed, from DreamWorks Studios based on the video game racing franchise from Electronic Arts, starring Aaron Paul (Breaking Bad); and Ender’s Game based on the science-fiction novel series, starring Harrison Ford, Ben Kingsley, Asa Butterfield, Hailee Steinfeld, and Viola Davis.

Additional properties that will be featured at the Striker booth include Ted, House of Cards, Kick Ass 2, Evil Dead, and a few new properties that will be revealed at Licensing Expo.

Mermaid

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D3M and Strong Arm Partner for Flo Rida Brands

Strong Arm Management has granted D3M Licensing Group (D3M) global rights for licensing and endorsements for Flo Rida. Strong Arm, a management company founded by Lee Prince, is home to Flo Rida and emerging stars such as StayC, Tyler Medeiros, Whyl Chyl, and Team Phlyte. D3M will extend the global Flo Rida brand into key categories, including apparel, accessories, health and fitness, consumer electronics, and music-related products. The team is also negotiating endorsement deals with brands looking to reach Flo Rida’s millions of fans worldwide.

This year, Flo Rida was contracted to perform at corporate venues for Samsung (Smart TV and mobile phones), Coca-Cola, T-Mobile, and BlackBerry. He currently has deals in place with Beamz Interactive, an interactive music product and technology company, to produce a series of Flo Rida products. D3M will create unique brand experiences at retail and beyond using FuelAR (augmented reality) technology, and is in talks with major brands across consumer product categories.

Flo Fit boxing gloves

Rock ’n Roll with Bravado

Apple Corps Ltd. has granted Bravado International Group, Universal Music Group’s global merchandising company, the rights to offer official Beatles merchandise in North America. This agreement, effective July 1, will bring together the iconic band’s North American merchandising rights and recorded music catalog, enabling Universal Music Group to provide a unified marketing strategy for the music and associated products of one of the most influential bands in the history of music.

The Beatles have achieved great success with a wide variety of branded memorabilia and merchandise. With this agreement, the collection will now benefit from Bravado’s experts in the creative, sales, marketing, e-commerce, and sourcing areas of the merchandising world. Apple Corps. Ltd. and Bravado are working together to create a range of new offerings for the band through retail, online, and licensing partners. The first slate of products is expected to be available beginning in July.

Universal Music Canada and Crystal Head Vodka, the ultrapremium vodka founded by Dan Aykroyd, have joined forces with The Rolling Stones to create an exclusive, limited-edition Rolling Stones 50th Anniversary Gift Set. Crystal Head Vodka has been named the official vodka of The Rolling Stones’ 50th anniversary.

The collectible gift set includes a limited-edition Rolling Stones 50th Anniversary Gift Set

Summer 2013

handcrafted display The Rolling Stones case with a zipper that recalls the legendary Sticky Fingers album cover; a bottle of Crystal Head Vodka; a two-disc live compilation album that spans The Rolling Stones’ five decades on stage; a crystal bottle decanter top, engraved with The Rolling Stones’ lip-and-tongue tattoo; and a bottle tattoo featuring the 50th anniversary logo. The limited-edition 50th Anniversary commemorative package will retail in North America.

Bravado, a global, 360-degree, full-service merchandise company, develops and markets high-quality licensed merchandise to a worldwide audience. The company works closely with entertainment clients, creating innovative products carefully tailored to each artist or brand. Product is sold on live tours, via selected retail outlets, and through web-based stores. Bravado also licenses rights to an extensive network of third-party licensees around the world. Under the Universal Music Group umbrella, Bravado leverages a global sales and distribution network from the world’s largest record company, as well as the group’s significant marketing strength. Bravado’s artists include Paul McCartney, The Rolling Stones, Bob Marley, Lady Gaga, Michael Jackson, Justin Bieber, Eminem, Kanye West, Metallica, Katy Perry, Nicki Minaj, Guns ‘N Roses, Red Hot Chili Peppers, Lil Wayne, Green Day, Black Sabbath, and The Killers.

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Licensing Expo 2013

Character & Entertainment

Ludorum Keeps Chuggin’

Ludorum pulls into Licensing Show with brand-new Chuggington episodes debuting this fall, starting with its first primetime TV special, Chug Patrol: Ready to Rescue!

The new episodes feature all-new adventures for Wilson, Koko, and Brewster, and introduce new characters.

Support for the Chug Patrol tentpole includes a summerlong teaser campaign and tie-in products from Tomy, Anchor Bay, Digital Blue, Bendon Publishing, Cardinal, and more. Ludorum will expand the licensing program for this preschool property by bringing on partners in areas including health and beauty, activities, accessories, and home décor.

Sapiens Shows Pocoyo

Sapiens Brand Management, Zinkia’s agent for Mexico, will showcase Pocoyo. Zinkia is the exclusive worldwide licensor of the global brand.

Pocoyo’s existing licensees include Bandai (toys), Big Picture and Multimusic (DVD), and Random House (publishing).

New licensees include Photopack (backpacks, bags, lunch bags and lunch boxes, and pencil cases); Laboratorios Farmaceuticos Andromaco (sun block and after sun cream); Pupeatry (live show production in Mexico), and Kay International (inflatable toys).

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FremantleMedia Builds On Entertainment Brands

FremantleMedia is a licensor of entertainment, factual, drama, kids’, teen, and tween brands. FremantleMedia builds brands and extends them into new experiences through carefully planned licensing programs with individually tailored strategies and partnerships across all consumer touch points.

FremantleMedia manages brands such as Tree Fu Tom, Strange Hill High, Ella the Elephant, Kate & Mim Mim, Wizards vs Aliens, and Grojband. Across the lifestyle genre, Grand Designs, Loteria, and Condé Nast’s SELF and Epicurious; and in the entertainment space, Idols, Got Talent, The X Factor, The Price Is Right, Family Feud, and Let’s Make a Deal.

Knitting Factory Amps Up Brands

Knitting Factory Entertainment, represented globally by IBE Intelligent Brand Extension, continues to extend its brand across all territories. Knitting Factory has continued to build on previous agreements for electronics accessories and U.S.-made leather bag, from KOTHAI apparel with Groceries and Ecoteka. An agreement with the French company KOTHAI will see a European rollout of leather accessories, including bags, wallets, and iPad cases, in addition to T-shirts and other apparel. The collection will launch across Europe this fall.

Knitting Factory signed with fashion and apparel company Fallen Arrows for apparel, headwear, and accessories in limited-edition pieces that will debut in June.

IBE Intelligent Brand Extension is currently in discussions for a brand extension program in Asia and the Middle East involving the entire catalogue of brands held by the Knitting Factory Entertainment group, including the Fela (Kuti) brand, as well as The Knitting Factory and Federal Bar global franchises.

Summer 2013

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Celebrity Licensing

The Proliferation of Winning Partnerships Between Retailers and Multi-Hyphenate Celebrities

by Darrell Miller, managing partner, Fox Rothschild LLP eing a celebrity is not what it used to be. In the old days (bear with me while I think as far back as the 1980s and 1990s), celebrities in the entertainment industry could depend on revenue from one primary source to sustain a very lucrative career and often lavish lifestyle. A film studio, TV broadcast network, or major record label could each be relied upon to produce a hefty bottom line for top artists. Today, fewer films are being made by the studios, broadcast networks are struggling to hold onto market share that is being taken over by hundreds of cable networks that focus on specific audiences, and the record business we once knew no longer exists, as sales of albums and CDs have been reduced to a fraction of digital downloads of individual songs.

The emergence of myriad new distribution platforms and the rapid growth of various forms of digital entertainment have created a challenging economic climate within the entertainment industry.

For many celebrities, a revolution in the way they approach their sources of income and maintain their relevance in a changing marketplace must now be addressed head-on.

An increasing number of celebrities are now seeking strategic partnerships, profit participation, and even ownership stakes in the products they endorse—a shift that will have important conse-

B

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quences for both celebrities and retailers who stand to benefit from such partnerships.

The Multi-Hyphenate Celebrity

I often tell my celebrity clients that, in the current economic climate, they cannot sustain the levels of success to which they are accustomed without expanding their reach into other industries. Creating strategic alliances with retail brands has proven to be an effective way to expand and diversify their reach as well as build their brand equity.

More frequently today, success for celebrities depends on becoming multihyphenate professionals: entertainers who do not exclusively act, sing, or dance, but who have developed multiple talents or skills, enabling them to generate revenue in different ways (think musician-entrepreneur-author-actor-writer-producer-directorspokesperson-etc.). Multi-hyphenate celebrities can be found in Ben Affleck, who is an actor, writer, director, producer, and activist; and Jay-Z, who is a

“Key issues celebrities look at when evaluating deals include personal commitment, deal structure, and creative control.”

Summer 2013

musician, music producer, songwriter, publisher, and entrepreneur.

Savvy Celebs

For retailers, celebrities’ growing interest in licensing their personal brands means that there are more opportunities for this kind of collaboration than ever. However, it also means that celebrities are more sophisticated and savvy about which deals to pursue. Key issues celebrities look at when evaluating deals include personal commitment, deal structure, and creative control.

In my own legal practice, I represent actor Blair Underwood in his partnership with K & G Clothing Stores, a subsidiary of the Men’s Warehouse. Under-

Personal Commitment The best partnerships allow celebrities to express their voices through the brand. An authentic commitment to the brand will make celebrities more likely to do the follow-through necessary for a successful venture. For example, using social media to tout an endorsement of a product or speaking about their endorsement in all of their media appearances, whether as a contractual obligation or not.

Deal Structure How much profit participation and equity will the celebrity receive in return for their endorsement of the brand? How much money will be guaranteed? Will a royalty be paid based on sales?

Creative Control We are dealing with artists, after all. To avoid misunderstandings and improve the quality of the product, it is important to define the extent of the creative input each party will exert in advance of the deal. In some cases, a celebrity can have more at stake than a retailer when it comes to making or breaking a brand. Therefore, many artists are very sensitive to how their brand is used, and they often require final creative approval over the use of their name, likeness, bio, and any trademarks that they license in connection with these deals.

Summer 2013

wood is developing a line of “BU” suits for the company. Such a partnership enables him to extend his personal brand and his potential to earn a new stream of revenue into the retail space, while allowing a wellknown retail company to benefit from his popularity and high-style reputation. The success of this partnership highlights an important lesson: the name recognition that comes with celebrity is one of the most effective ways for brands to cut through the clutter in an oversaturated market.

Celebrities used to look at licensing deals as just an extra check in the mail—a nice bonus, to be sure, but by no means a primary focus. Today, celebrities and their representatives are looking at branding opportunities much more vigorously. Expertise in handling celebrity licensing and endorsement deals will become more widespread as actors, artists, and other high-profile individuals, such as reality TV stars, recognize the value and necessity of these business ventures in the coming years.

These deals can be financially rewarding and highly beneficial to both a celebrity’s and a retailer’s brand equity if they are negotiated and managed well.

••••

Darrell D. Miller is the chair of the national entertainment law department at Fox Rothschild LLP and the managing partner of Fox Rothschild’s Los Angeles offices. Miller has more than 20 years of entertainment law experience and focuses his practice on transactional law, with an emphasis on the creation of multiple streams of revenue for clients with high brand equity through the cross-promotion of film, television, music, theater, multimedia, and licensing opportunites. He is a frequent speaker and moderator on topics related to the business of entertainment.

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Corporate Corner

Beanstalk

Beanstalk Launches New Digital Licensing Division, Tinderbox

Beanstalk has launched Tinderbox, a new division dedicated to working with digital brands to realize their potential in the world of consumer products. Tinderbox will operate as a division of Beanstalk, which has nearly three decades of experience in the licensing industry, and will be led by a dedicated team specializing in digital properties.

With reports that 1 billion smartphones will be shipped globally this year, and that 84 percent of people worldwide say they couldn’t go a single day without their mobile device in their hand, the face of the licensing industry is changing radically due to the influence of technology on consumers’ habits. Tinderbox has been developed to address the market need for a brand licensing agency expert at extending digital properties—from social networks to interactive gaming, and all categories of apps, including games, entertainment, and lifestyle. Tinderbox will partner with digital properties at any stage in their life cycle, whether emerging or established, to get them ready and activate their brand through licensing.

Dan Amos, head of new media at Tinderbox, says, “The ability to engage with consumers in countless and increasingly more direct ways has resulted in a visible impact on the licensing industry. It’s a very exciting time for the licensing industry, with incredible product innovations forming connections between the virtual and the physical world.”

Tinderbox’s first clients are the leading tween social network MovieStarPlanet and entertainment app properties My Singing Monsters and The Beetnuks. Tinderbox will work to further expand the existing MovieStarPlanet licensing program, developed by Beanstalk, which already includes publishing, apparel, accessories, stationery, and home décor. The representation of these properties forms part of the Tinderbox strategy to introduce properties that demonstrate significant potential to brand licensing while they are early in their lifespan. My Singing Monsters, with millions of downloads since its launch last September, is a world-building music game by developer Big Blue Bubble Inc., in which the player collects and breeds adorable monsters. The Beetnuks is a new brand which will be supported by a mobile game and other media, under development at BlooBuzz, a subsidiary of Québecor Média Inc. ••••

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Beanstalk Adds Notable

New Clients to Its Roster

Beanstalk has celebrated another successful year of growth with notable additions to its client roster: Wolfgang Puck—Beanstalk will expand chef and restaurateur Wolfgang Puck’s presence in food and cookware into additional food, beverage, and other complementary categories by leveraging Wolfgang’s culinary expertise and popularity.

Hertz—Beanstalk will develop a comprehensive global licensing program that will extend the car rental brand into various products and services that provide quick and easy travel solutions.

Hertz operates from approximately 10,460 corporate and licensee locations in about 150 countries in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East, and New Zealand.

Wilton Enterprises—Beanstalk will work to extend the food crafting company’s brand into strategic housewares and food products that align closely with brand equities and provide consumer solutions. Wilton Enterprises is known for its cake decorating, bakeware, and tea kettles.

Fender—Beanstalk will focus on extending the American guitar and amplifier brand into a range of lifestyle categories in the UK, building on the brand’s unique Americana heritage and links to the genuine rock ’n roll lifestyle.

La Tasca Spanish Tapas Bar and Kitchen—With 42 restaurants across the UK and five in the U.S., La Tasca specialty tapas restaurants have been bringing authentic Spanish cuisine to diners for 20 years. Beanstalk will work to extend the La Tasca brand into grocery stores across the UK with food categories inspired by the restaurant’s most popular dishes, as well as non-food categories such as gifts, cookware, and publishing.

Shula’s Steak Houses—Named for and owned by NFL Hall of Fame Coach Don Shula, Shula’s Steak Houses will enter complementary food and beverage categories with products including frozen meals, frozen potatoes, appetizers, soups, sauces, condiments, dry spice rubs, and non-alcoholic drinks. Beanstalk will also continue to build upon Shula’s association to sports by extending into tailgating gear, including grills and grill accessories.

••••

Summer 2013

Corporate Corner

Beanstalk

Nuance Salma Hayek

Designed to enhance the nuances that define every woman’s individual beauty, the Nuance Salma Hayek beauty line continues to outperform expectations. With more than 120 products spanning four categories—skincare, cosmetics, hair care, and body care—the brand has continued its evolution in beauty. Over the past six months, Nuance Salma Hayek has introduced more than 30 shades of nail polish, the Ageless Clarity skincare platform targeting women with adult acne, and the Flax Seed Age Therapy hair care regimen formulated to rejuvenate aging hair. Hayek continues to promote her passion project with visits to Ellen, The Rachael Ray Show, and numerous features in major beauty publications.

HGTV

HGTV, the home and garden television network, has launched a collection of HGTV Home-branded consumer products that translate the fresh style, rich content, and inspirational voice of the network.

The line, which offers “smart, stylish products from the experts at HGTV,” includes HGTV Home by SherwinWilliams paint, wallpaper, and accessories; HGTV Home Flooring

by Shaw; the HGTV Home Furniture Collection; the HGTV Home Design Studio only at Bassett; HGTV Home Outdoor Living only at HSN; the HGTV Home Plant Collection; HGTV Home Indoor Lighting; HGTV Home Solar Lighting; and HGTV Home Decorative Fabric and Trim.

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P&G

P&G licensed products have recently launched under the Febreze, Mr. Clean, Gain, Vidal Sassoon, Scope, and Oral B brands. Most products are distributed in similar retail customers as P&G core products in the food, drug, mass, and dollar channels of distribution, and in some cases are expanding distribution of P&G brands into specialty stores or department stores.

The Febreze brand has expanded into home goods, such as pillows and mattress pads, home décor, candles, and carpet powders. The program continues to be successfully supported by leading manufacturers such as Bissell, Springs Global, and MVP. Mr. Clean licensee Butler Home Products recently launched a new product in the Magic Eraser family, the Mr. Clean Magic Eraser Toilet Bowl Scrubber. Butler also launched a Mr. Clean with Febreze Toilet Bowl Brush & Caddy.

Butler Home Products introduced the first licensed Gain products with a line of Gain dish cleaning tools.

Helen of Troy has introduced new Vidal Sassoon Pro Series hair appliances and accessories to support the recent launch of Vidal Sassoon Pro Series hair care, styling, and hair color.

Oralabs has launched a co-branded Oral B + Scope dental guard.

Honda

Honda, the first Japanese automaker to manufacture in the U.S., consistently ranks as a top 20 global brand and has translated its strong brand recognition to its licensing program. Honda’s longstanding reputation for reliability and Acura’s association with “smart luxury” allow licensed products to stay relevant across many categories, including fashion apparel and accessories, automotive accessories, toys, interactive, home décor, gift, and novelty. The Honda brand is also recognized worldwide as the leader in the Powersports industry when it comes to advanced technology and exceptional quality. The Honda Powersports division has successfully developed a licensing program that elicits the same exciting appeal as Honda motorcycles, ATVs, personal watercraft, and scooters.

Summer 2013

Corporate Corner

Beanstalk

Stanley Black & Decker

Licensed products from Stanley Black & Decker’s portfolio of brands can be found in almost every channel of the trade, including major DIY retailers, hardware stores, mass, midtier, and home specialty retailers, as well as in the industrial and commercial channels. This year, Stanley Black & Decker’s licensing program will continue to expand into new, strategic product categories for the home and jobsite. New licensees across a host of categories have recently been added to the program, including work boots, BBQ grills, and jobsite heaters, providing opportunities for increased brand impressions and new retail channel growth. Current licensees will work closely with Stanley Black & Decker to focus on expanding their placement across a broad range of retail accounts, as well as introduce new products through effective marketing strategies and product innovation practices.

Pennzoil

Pennzoil, the No. 1 motor oil brand in the U.S., extends into products that are consistent with its core equities of innovation, quality, performance, and durability. The program consists of best-in-class licensees, including Brisco Apparel and New Ray Toys, which have secured placement in a variety of retail locations, ranging from specialty automotive stores to mass merchant retailers. Recently, Pennzoil joined forces with GreenLight Toys, a leader in the die-cast replica category, to develop a co-branded line of Pennzoil and Quaker State 1:18-scale vintage trucks. The product will appeal to a broad consumer base including die-cast collectors, vintage memorabilia markets, and enthusiasts of the Pennzoil brand, truly communicating the rich heritage of both Pennzoil and Quaker State. Pennzoil will also launch a vintage inspired collection of wall art, signage, and containers at retail late this year with licensee Open Road Brands. Pennzoil is currently seeking partners in the automotive tools and accessories categories, among others.

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Old Bay and Chiquita

Beanstalk continues to extend its clients into the food category with the launch of Bigs-Old Bay Catch of the Day Sunflower Seeds and Chiquita Fruit Bites. THANASI Foods LLC introduced another category first with its new Bigs-Old Bay Catch of the Day Sunflower Seeds, a strong addition for retailers looking to bring innovation and a bold new flavor to the snack food aisle. Chiquita Brands International Inc., the No. 1 selling brand of bananas in the U.S., and The Jel Sert Co. have partnered to launch Chiquita Fruit Bites. Chiquita Fruit Bites is a fruit snack that will leverage the brand’s prominent positioning of healthy snacking by offering consumers treats that are made with real fruit juice and puree, ranging from 36 percent to 42 percent, depending on the flavor.

U.S. Army

The U.S. Army’s newest licensees include The Elite Group and Bestway International. Both will launch a full line of outdoor camping equipment and accessories later this year. Additionally, Northeastern Plastics will introduce a line of roadside assistance kits and batteries, and Global Tissue Group will develop a line of paper products, including paper towels, tissues, napkins, cleaning wipes, and bath tissue. Lastly, U.S. Army-branded ruggedized mobile phones and accessories will be introduced into the market by The Thal Organization. The U.S. Army is currently seeking partners in a number of categories, including luggage, sporting goods, toys, back-to-school, and fitness equipment and accessories.

Summer 2013

Energizer

The licensing program for Energizer adds a number of new licensees. In Canada, Energizer-branded photo accessories, from Bower, will soon be available at Staples. Midland is preparing to ship Energizerbranded generators into Walmart Canada for in-line placement—a product that is typically sold online due to its size. Mobile accessories partner Premier, a long-standing licensee of Energizer, has recently included hands-free phone earbuds with microphone, a universal touchscreen stylus and stylus pen combinations for use with mobile devices, and screen protectors for the iPod touch 5, iPhone 5, and iPad mini.

Power Bright designs and manufactures advanced power inverter products, and the Energizer power inverters will soon launch at London Drugs and Best Buy in Canada, as well as on QVC. Avenir Telecom, a licensing partner since 2010 for both the Energizer and Eveready brands throughout Europe, the Middle East, and Africa, offers products such as mobile phone and laptop portable power connectors, audio/video cables, and surge protectors.

The Energizer licensing program is seeking partners in new product categories, including solar lighting and products, holiday lighting, air compressors, and security products.

AT&T

As one of the largest global communications companies, AT&T’s network connects more than 1 billion devices, while providing services on six different continents. AT&T’s current licensed products include corded and cordless phones for home, small business systems, Bluetooth accessories and speaker docks, wired and wireless headphones, portable personal devices, cables, connectors and power products, audio/visual accessories, and more. AT&T is currently seeking partners in categories, including wireless video cameras, GPS trackers, and wireless memory cards.

Summer 2013

Licensing Expo 2013

Corporate Brands

The Joester Loria Group Appointed Master Licensing Agent for The Snowman

The Copyrights Group, worldwide master licensing agent for The Snowman, has appointed The Joester Loria Group (JLG) as the exclusive licensing agent for the property in North America. JLG will develop a retail-driven licensing program designed to connect consumers with the holiday classic.

The Snowman is an animated film, adapted from Raymond Brigg’s children’s book, that has been seen by more than 20 million viewers in the UK. To celebrate its 30th anniversary, the sequel, The Snowdog, will launch in the U.S. this Christmas.

JLG will launch consumer products focused on gift-giving and creating holiday memories featuring the hand-drawn artwork from the film. Key merchandising categories for consumers include plush, games, food, apparel, fashion, accessories, housewares, seasonal décor, and crafts.

The Snowman’s UK licensing program is building with new products this year as well, including Ravensburger for puzzles, Transcontinental for Christmas decorations, Blueprint for stationery and bags, and Thorntons for confectionery. Additionally, there is a healthcare range from Oscar and Dehn, cards and wrap from Hallmark, plush from Steiff, and craft and play products from SAC Games. Retailers can also look forward to refreshed and expanded ranges from existing licensees such as Rainbow’s plush and Creative Party’s paper tableware.

The Joester Loria Group’s key initiatives for this year include corporate brands, children’s properties, and entertainment and media brands. New initiatives for the Kellogg’s brands include collections of dinnerware, serveware, and drinkware across multiple brands from Tabletops Unlimited. Acme International will also introduce Special K portion control kitchen tools and Keebler baking tools this fall.

Other deals include food and storage products, art collections with advertising art and packaging, and Keebler and Pop Tart appliances.

Parragon is in development

102 • The Licensing Book

for the new Entenmann’s Bake Shop recipe book, which will be in stores this holiday.

Entenmann’s will also expand its Bakeware collection to include trend-relevant items such as cake pop pans and seasonal themed pans. JLG will also continue the Mountain Dew Green Label Exclusives program with new collaborations this year.

JLG recently appointed local agents for The World of Eric Carle in Korea, Russia, and Benelux. In the U.S., Babies “R” Us and Target will have new infant and toddler products for The World of Eric Carle, and new categories including giftware, HBA, crafts, juvenile products, and infant and toddler apparel are expanding in all key markets.

JLG will execute a retail-driven program for The Hive, launching new products and a new website, including toys, plush, games, publishing, apparel, room décor, and confectionery.

New categories for Discovery Communications’ Animal Planet brand include wet grooming, pet toys, pet beds, and premium pet treats. New products include pet food, pet pads, pet wipes, pet stain and odor cleaners, feedings and storage, pet gates and interactive toys, and lifestyle housewares products.

The Annoying Orange brand continues to produce product in new categories, including tattoos and stickers, talking pens, squishee balls, erasers, and puzzles this spring, and bedding, pillow, bath, and beach products this fall.

Summer 2013

The ASPCA Expands Licensing Program As the first animal welfare organization in North America, the ASPCA has been the nation’s leading voice for animals for almost 150 years. The organization’s key strengths include a membership base of more than 2 million supporters, strong consumer trust in the ASPCA’s mission, billions of media Watercolor Pet Pillow Covers, from PBteen impressions, innovative partnerships, and strategic online and social media initiatives. The ASPCA has harnessed these strengths into a successful licensing program that is now in its seventh year.

With the addition of Helene Gordon last year in the new position of senior director of licensing and retail development, the ASPCA’s licensing program has expanded beyond a focus on pet and pet products to include “pet-people products.” As Gordon explains, “Now more than ever, pets are a part of our families and, as a result, people are spending more than $53 billion on their pets every year.

In fact, 62 percent of all households in the U.S. have pets, which is a greater percentage than households that have children. This led us to realize that among the market of people who love their pets, there is an opportunity for pet-themed products for them that also support our mission.”

Most recently, the ASPCA’s licensing program has entered into an agreement with Commonwealth Toy & Novelty Co. Inc. to develop a line of plush toys and accessories tentatively set to launch by the end of the year. The line will aim to replicate the experience of adopting a shelter pet, bringing the ASPCA’s mission to a new generation of animal advocates.

This fall, AAR/Caroline/Universal Distribution, a label known for TV soundtracks for shows such as NCIS, Hawaii 5-0, and Friday Night Lights, will release ASPCA Presents: Artists for Animals, a music compilation to benefit the ASPCA. Confirmed artists to-date include Bob Dylan, Dolly Parton, Jason Mraz, Colbie Caillat, Pauley Perrette, and David Archuleta.

During the past year, the ASPCA’s roster of licensees creating petthemed products for people has grown to include products across jewelry, apparel, and children’s toy categories. Firestar Diamond has

Summer 2013

created a line of jewelry honoring the bond between pets and their people called Tender Voices, which is available across the U.S. at retailers including Zales and Reeds. The ASPCA has entered into an exclusive eyewear agreement with Eyewear Inventions LLC for a line called Paws ’n Claws Eyewear that is being sold at eyewear stores. Apparel company David & Goliath has created a line of pet-themed T-shirts, Scottie Dog Shortbread, from Walkers with a portion of the proceeds benefiting the ASPCA’s mission. Girls’ clothing company Puppy Luv Glam has committed to donating a portion of the purchase price of its puppy-themed apparel line to the ASPCA. The organization has also entered a licensing agreement with Vans, with details to be announced closer to the partnership’s launch date next year.

By licensing the ASPCA name, licensees create a unique cause marketing platform for retailers and consumers to be a voice for animals. Partners such as ASPCA Pet Health Insurance, Bank of America credit and debit cards, and We-Care’s online shopping portal are key revenue drivers, while the ASPCA brand continues to build momentum in new categories and retail channels. Last year, consumers could find ASPCA pet products such as pet beds, throws, toys, and kennels at mass retailers including Target, Lowes, Walmart, Ross Stores, and CVS. Seasonal promotions with Forever 21, Pottery Barn Teen, and West Elm rounded out this diverse licensing and retail strategy.

Throughout next year, the ASPCA’s licensing team plans to build on this foundation to continue to round out the program. “We are looking forward to continuing to not only broaden our program and create new relationships and opportunities, but also to go deeper into the retail spaces and channels that have been successful,” says Gordon. “With each licensee and product, we are creating new opportunities for animal lovers to show their support and lend their voice to our mission to help animals in need across the country.”

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Licensing Expo 2013

AALMG Presents Mandalay Bay

All-American Licensing & Management Group will present the Mandalay Bay lifestyle licensing program. Mandalay Bay lifestyle products will capture the fun, excitement, and imagination of the Las Vegas experience with the creation of quality branded products that are inspired by the Mandalay Bay Resort and its property, attractions, beach areas, and tropical surroundings.

Licensees for the lifestyle brand include PEM America (bedding), InGear (swimwear), Cambridge Towels (towels), Maggie May Swimwear (women’s swimwear), Impact Design Marketing (furniture), and Solaray Corp. (sunglasses and accessories).

Corporate Brands Neat-Oh! Offers New Items in ZipBin Line

Neat-Oh! International LLC brings innovative products to the market that help consumers simplify their lives. The company’s flagship products belong to its patent-pending ZipBin line of transportable and collapsible interactive storage products that unzip to become activity or play surfaces, and then zip Star Wars Yoda Toy Storage back up to storage bin form. and Carry Case New for Lego are Lego City ZipBin Storage Basket and Playmat, which unzips to become a playmat, and stores Legos when zipped back into its basket shape; Lego Chima ZipBin Battle Case, featuring a fold-out ramp; Lego Friends ZipBin Heartlake Wristlet, with five pockets for Lego storage and 3-D pop-up scenery when unzipped; and Lego Friends ZipBin Heartlake Place Transforming Toy Box, which folds flat to become a playmat, and is big enough to store all kids’ Legos when zipped up.

Neat-Oh! also introduces the Barbie Black Bow Clutch and Closet, part of the ZipBin line, featuring pink woven designs and a dressing room for Barbie inside, for girls ages 3 and up.

The Hot Wheels Racing Battle Case features a flip-out track and space to store up to 20 Hot Wheels cars. The Hot Wheels ZipBin Crash Racer Backpack with Car Assortment includes two blue cars, two red cars, one green car, and one yellow car. The car body is perfectly integrated into the shape of the backpack and unzips into a two-lane raceway.

Neat-Oh! also debuts soft-sided display ZipBins from Star Wars. Star Wars-themed ZipBins are available in Darth Vader, Yoda, and Stormtrooper varieties.

Excel Branding Represents City of Malibu for Worldwide Categories

Excel Branding unveils licensing programs for many new and iconic properties, including the City of Malibu for worldwide categories, such as apparel, swimwear, health and beauty, outdoor sport products, beach products, gifts, and novelties.

Excel also represents Jackie Evancho for apparel, health and beauty, and apparel accessories; The Limited for jewelry, bedding, bath, tabletop, eyewear, and watches; Karina Smirinoff, of Dancing with the Stars fame, for categories including active wear, swimwear, intimates, health, beauty, and nutritional products; Marika for footwear, children’s apparel, health and beauty, luggage, and nutritional supplements; My Beastly ABCs, voted one of the top 10 new apps for children, for publishing, plush, posters, and calendars; Bally Total Fitness for children’s apparel, health and nutritional supplements, vitamins, energy drinks, and backpacks; Barbie Blank, Maxim cover model, for posters, calendars, swimwear, and intimates; NWA Championship Wrestling for products to feature the likeness of wrestlers, including apparel, T-shirts, headwear, toys, games, posters, school supplies, and gifts and novelty; Fish Flops flip flops for footwear, apparel, and school supplies; Tehama golf wear for men’s and women’s apparel and accesories; Ruthless, from the creators of Miami Ink, for T-shirts, posters, calendars, and gifts and novelties; and Tony Bennett for apparel, fragrance, grooming aids, social expressions, and painting supplies.

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Summer 2013

Licensing Expo 2013

Artestar Gets Creative

Corporate Brands

Artestar represents art, fashion, and design brands. Select clients include Jean-Michel Basquiat, Patricia Field, Keith Haring, Robert Mapplethorpe, Sandra Isaksson, Maripol, Ryan McGinness, Gary Taxali, Joe Grillo, Queen of E.vil, Ai Weiwei, and Love Therapy.

Clients are available for licensed products in apparel, bags and accessories, mobile accessories, cosmetics, stationery, back-toschool items, electronics, bed and bath, edibles, toys, and footwear.

Keith Haring

The Metis Group Represents Smokey

The Metis Group LLC will represent Smokey Bear at the Licensing Expo for the seventh year in a row. Smokey Bear is the national symbol for wildfire prevention and is an iconic American property appealing to all ages and demographics. Smokey’s 70th anniversary is next year and increased advertising and a new public service announcement will be part of the celebration.

The Smokey Bear Licensing Program has evolved to include a portfolio of more than 100 licensees. In the past year, two licensees producing honey in bear bottles were added: Kelley Farms and Groeb Farms, each with its own design and placement channels.

Smokey Bear has also added e-book and app licensees, Animax Interactive and Pine Tree Pictures, to accompany existing licensee Moveable Code. Smokey’s apparel offerings were expanded with the addition of shoe and slipper licensee Mad Traffic Creative Services.

Twelve other licensees were signed, representing apparel, collectibles, home goods, and specialty products.

Because of the ownership by the U.S. government and protection under public law, there are no exclusive licenses or product categories in the licensing program.

The same holds true for Woodsy Owl, also represented by The Metis Group. Additional licensees are signed weekly and all categories are available.

The Coca-Cola Company Expands Brand with New Products

Led by Coca-Cola, The Coca-Cola Co.’s portfolio features $16 billion brands including Fanta, Sprite, vitaminwater, Powerade, Minute Maid, Georgia, and Del Valle.

This year, Coca-Cola will continue to focus on collaborating with designers, illustrators, and artists to bring new products to life. In February, Coca-Cola launched a capsule collection of apparel and accessories designed by Nigo under the Human Made label.

This was followed in April by a collaboration with Zozotown and nine leading fashion brands, including Stussy, New Era, and Luker. The Coca-Cola Clothing spring and summer collection debuted at Fashion Rio later that month. Additional regional and global collaborations are planned throughout the year with leading fashion brands at all retail tiers. Coca-Cola will continue to infuse the tabletop category with innovation. More than 250 million Coca-Cola glasses are sold around the world each year. The Arciform and Coca-Cola Heritage Glasses designed by Thomas Meyerhoffer debuted earlier this year.

A designer series of Coca-Cola decorated drinkware will launch later this year at key retailers around the world.

Heritage Glasses

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Play Visions’ Living Sand

Living Sands consists of sand and other natural ingredients, creating a unique feel and texture similar to cookie dough, yet it is dry to the touch.

Kids can mold it into a hard durable shape and break it apart with a soft touch. Anti-bacterial and 100-percent non-toxic, Living Sands will not stain and easily washes off hands. Living Sands will be available this month.

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Licensing Expo 2013

Corporate Brands

Pretty Ugly LLC Presents Beauty Products, Games

Boldface Group Inc., a celebrity beauty licensing company founded by beauty industry veterans, has entered into a licensing agreement with Pretty Ugly LLC to expand the category of beauty and personal care products.

Since its inception, the Uglydoll brand has been showcased at Barneys, MoMA, Giant Robot, Colette Paris, Barnes & Noble, and Toys “R” Us. Boldface intends to build a range of products and accessories that will speak to the unique personality of the Uglydoll brand and its followers of all ages. Products will include bath soap, shower and body care products, lip balms, fragrance, bath accessories, and more.

Pretty Ugly LLC has licensed Uglydoll to Kanga games for the Uglydoll Card Game. The game is sold in China, Taiwan, Hong Kong, and the Philippines. Players ages 6 and up turn over cards until there are three matching Uglydolls. Players must race to grab a match Uglydoll Card Game, from Kanga Games before all the cards are snatched. The player with the most cards wins.

In January, Universal Partnerships & Licensing announced it had entered into an agreement to expand the digital category of the imaginative “Uglyverse,” by launching interactive and wireless content, such as apps, games, widgets, and virtual goods. A feature film based on the Uglydoll characters is currently in development at Illumination Entertainment, Universal Pictures’ main supplier of family and animated films. The film will be produced by Illumination founder Christopher Meledandri, and distributed worldwide by Universal.

Product merchandising tie-ins will be explored as available.

Further, strong brand partnerships with other Ugly licensees will be explored for potential store-in-store brand exposure.

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Spin Master Joins Licensing Show

Spin Master Ltd., a children’s toy and entertainment company, will have a booth at this year’s Licensing Expo, the first time in its 19-year history.

The Spin Master booth will feature opportunities for robust licensing initiatives with Air Hogs, Kawaii Crush, Spy Gear, and Tech Deck.

Spin Master has a roster of brands that progress beyond the toy aisle, which will have natural extensions into full-scale licensing programs. With these additional opportunities it will build long-term sustainable franchises that children will continue to know and love for decades.

Trump Brand Expands in New Territories

The Trump Organization encompasses global real estate development and global licensing, sales and marketing, property management, golf course development, entertainment, entertainment and product licensing, brand development, as well as restaurants and event planning. The product licensing division has granted licenses for product under the Donald J. Trump Signature Collection brand, the Trump Home brand, and a men’s fragrance. The Trump Organization has appointed a number of international licensing agents to extend the Trump brand into new territories through local licensing programs. Trump brands will be represented in the UK, South Korea, Brazil, Mexico, Latin America, South America, and the Caribbean.

New agents for the brand include The Partnership in the UK; Infiniss in South Korea; Supermarcas in Brazil; and P&L Global Network in Mexico, Columbia, Ecuador, Venezuela, Costa Rica, El Salvador, Peru, Chile, Guatemala, Honduras, Panama, Dominican Republic, Aruba, Bermuda, Cayman Islands, Curacao, Haiti, Jamaica, Trinidad and Tobago, Bonaire, Guadeloupe, and Martinique.

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Discovery Enterprises Presents New Brands

Discovery Enterprises International (DEI) will return to International Licensing Expo to unveil new commercial opportunities for its broad portfolio of global, regional, and local brands. The opportunities presented by these brands will underpin DEI’s position as a truly global licensor with properties that resonate with consumers worldwide.

DEI’s presentation slate will be led by the lifestyle apparel and accessories brand Discovery Expedition, with the next phase of the international retail roll out strategy set to be unveiled following a successful launch in Korea.

Condé Nast Licensing Showcases Magazine Brands

The Condé Nast licensing department is responsible for developing licensing partnerships for the company’s renowned brands. Current partnerships include The Bon Appétit Collection of cookware and small appliances on HSN, Teen Vogue apparel for mstylelab at Macy’s, Modern Bride jewelry at JCPenney, Brides Wedding Collection stationery and wedding accessories at Michael’s, The New Yorker Nook covers at Barnes & Noble, Wired tech accessories at Target, and Self fitness products. Categories in development include food, fitness apparel, social expression, and stationery and gift.

Mattel Debuts New Brands

Mattel unveils new partnerships and product offerings for infants and toddlers, kids, tweens, and adults. American Greetings Corp. partners with Barbie for a line of ornaments this holiday season, including a commemorative 25th anniversary Holiday Barbie ornament. Mood Entertainment will release music CDs Barbie World Tour Party Mix and Barbie Holiday Party Mix, featuring popular hits performed by kids for kids.

Elan Polo International will launch Monster High footwear this back-to-school season inspired by the Monster High ghouls.

Calego International will offer Monster High hard-shell rolling luggage with four independently turning wheels and a gloss finish.

Franco Manufacturing will offer new ballerina and Barbie-inspired bedding and accessories, including sheets, comforters, blankets, throws, and pillows, as well as Monster High bedroom and bathroom accessories, including sheets, comforters, blankets, pillows, towels, and shower curtains.

Mega Bloks lets kids rock ’n roll with Barbie and her friends with the Mega Bloks Barbie Rock Star Stage. Kids can build an ultimate concert complete with amplifiers, glittering blocks, and a sparkling disco ball. The stage elevator and large video screens let the fans see Barbie perform anywhere at the concert. Sing along with four hit songs performed by Barbie and her friends or favorite songs on the radio.

Hot Wheels and construction toys combine with the launch of the Mega Bloks Hot Wheels Test Facility and Hot Wheels Cars. The Hot Wheels Test Facility lets boys build their own fantasy world of thrilling vehicle experiences with more than 30 stunts, two customizable cars, and figures.

The Camelio tablet by Vivitar (Sakar), a Google-certified Android device featuring Barbie, Monster High, and Hot Wheels personality packs, includes the ability to install branded apps, content, wallpaper, and widgets directly onto the Camelio tablet and comes with a branded themed case.

Fisher-Price has partnered with Bivona & Co. for a convertible crib that grows with baby from a crib up to a full-sized bed; Hunter Amenities for natural and organic bath and body products for newborn, infant, and toddler skin; and TCG for a line of preschool games.

Monster High footwear, from Elan Polo International

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Licensing Expo 2013

Corporate Brands

Jewel Branding & Licensing’s Properties Blossom

Jewel Branding & Licensing (JBL) now represents The New York Botanical Garden, which launched rugs with Mohawk in March, and a soon-to-be announced bed and bath licensee. JBL is also working with Tracy Porter and the brand recently launched bedding with PEM America, tabletop with Certified International, and wall art with Met Colors. A complete home collection for Clairebella will launch with Victoria Classics, including bed, bath, and kitchen textiles.

Ilana Wilensky joined the JBL team as vice president in April. JBL has also been signed to represent new designers, including Clare Jordan, Robbin Rawlings, Bee Sturgis, and Lauren Taylor.

Shell Rummel has signed deals with Pictura for stationery and gift products and has recently launched quilted bedding with Ivy Hill Home. Robin Pickens has signed with Pictura, Legacy Greetings, and Magnetworks for greeting card and gift products launching later this year.

Aunty Acid has signed with Leanin Tree, Ronnie Sellers, Gibbs Smith, and Tree Free Greetings for cards, gifts, calendars, and books.

Heather Rosas signed with Canvas Press (growth charts), Calego (backpacks and luggage), and CR Gibson (stitched Christmas products). Lezlee Elliott has signed with Canvas Kudos, Leanin Tree, and Design Design.

Design Plus Represents Kikkoman

Tact Communications, master licensing agent for Japanese food manufacturer and soy sauce producer Kikkoman Group, in conjunction with ZenWorks, has named Design Plus as the official licensing agency for Kikkoman in the U.S. Design Plus will unveil its consumer product program at Licensing Expo.

Tracy Porter bedding, from PEM America

Sunrights Inc. Manages Third-Party Properties

Sunrights Inc. is a New York-based total rights management company founded by Mitsubishi Corporation. Sunrights will manage properties for d-rights Inc. in North America and Europe, including assisting in the management of the Beyblade franchise with the current agent, Nelvana Ltd. Sunrights will source and manage other new third-party properties across a much broader field. It will look to develop original content for both a North American and European audience. The team will also seek future co-production partners.

Sunrights will also create new business models in various consumerrelated markets, including food, apparel, and online services, and in the integration and expansion of its business through Mitsubishi’s global network and intellectual properties.

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Bradford Focuses on AHA

Bradford Licensing will showcase properties including Pepsi, 7Up, Mountain Dew, Game of Thrones, Happy House, Dos Equis, Tecate, American Humane Association, Colgate, Julien Chung Designs, Pez Candy, Liz Lange, Panama Jack, WhateverItTakes.org, Celebrity Icons

by Sid Maurer, and Aspen. Bradford’s primary focus will be on the launch of the American Humane Association Licensing Program (AHA). The AHA currently leads in understanding human-animal interaction and its role in society. Categories available for licensing include pet products, back-to-school items, home goods, apparel, accessories, publishing products, and food and beverage products.

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Licensing Expo 2013

Corporate Brands

Synchronicity Partners with The Public Zoo

The book Parenting: Illustrated with Crappy Pictures, by blogger Amber Dusick, is available for licensing. The book, published by Harlequin, hit store shelves on March 26. Amber’s sideways perspective and crappy pictures are perfect for calendars, journals, stationery, greeting cards, infant products, T-shirts, bags, and gift wrap.

The Bark Magazine and its “Dog is My CoPilot” are also available for licensing through Synchronicity. The Bark is the ideal license for upscale dog accessories, toys and bedding, puzzles, calendars, and journals. “Dog is My CoPilot” bumper stickers, magnets, mugs, glassware, pillows, and T-shirts are coming soon.

The Tootsie Roll Candy Brands have joined forces with The Public Zoo in a joint licensing program, The Public Zoo in Tootsie Land. The Public Zoo and Bobby Jack brand creator Han Lee have designed a world where candy comes to life, featuring The Public Zoo’s animal friends. Synchronicity and Valero Enterprises will team up to license The Public Zoo in Tootsie Land to companies across all categories for kids, juniors, tweens, and adults.

Other highlights of the Tootsie Roll brands program include

Manic Panic Gets Colorful

Manic Panic NYC’s quest is to make the world a more colorful place—not only with bold and vivid hair dye, but with jewelry, fashion, accessories, and home goods. Manic Panic hair color has been featured in magazines, TV shows, and movies. Manic Panic made its debut at the Metropolitan Museum of Art during the PUNK: Chaos to Couture exhibit and at the Cannes Film Festival.

In the past, Manic Panic and owners Tish and Snooky have licensed their names for salons, cosmetics, and wine. The company is interested in licensing the Manic Panic and Tish and Snooky names to even more categories, including fashion, housewares, entertainment, books, stationery, and music. owners Tish and Snooky

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SRM’s Tootsie Pop Ice Pop and Tootsie Roll Lollipop Makers; Masterpiece Puzzle’s first set of Tootsie Roll and Blow Pop photo collage 1,000-piece jigsaw puzzles, Lotta Luv’s Blow Pop lip balm, and It’Sugar’s newly enlarged Tootsie Candy licensed product section in its stores.

Soon girls will be able to create their own Tootsie Roll candy fashions at www.FashionPlaytes.com. Look for Funky Town Tootsie Pop glassware and Planet Sox Charms socks at Urban Outfitters and Trau & Loevner Tshirts at Walmart and JCPenney. New licensees joining the more than 50 current licensees include Flavorlopes (flavored envelopes and stationery sets); Funky Town (drinkware, pillows, stickers, magnets, and can coolers); Liquid Blue (tie-dye and all-over print T-shirts); and Mad Engine (juniors’ and girls’ tops).

New to the Wham-O toy brands (Frisbee, Hacky Sack, Slip ‘n Slide, Hula Hoop, and SuperBall) and surf brands (Morey Boogie, Boogie Board, BZ, and Churchill) is Bailey Apparel (T-shirts for young men, juniors, and kids). Synchronicity will also see expansion on Icebreaker Entertainment’s Sassy and Sporty Slang brands, and Dan Statler’s Vulture Kulture lifestyle brand.

SIM Extends Slam, Surfer, and Lowrider

Source Interlink Media (SIM) owns more than 70 brands.

In the licensed consumer goods market, the automotive category remains a major business, with products including windshield frost guards, jumper cables, jumpstarts, organizational tools, multi-tools, and pet car safety. Relaunch of Lowrider apparel started in April with new products. The newest licensed products are from GrindMedia and Action Sports Group brands, including full programs for Slam basketball apparel and shoes, and Surfer Magazine swimwear for both men and women. SIM is interested in adding additional licensees for accessories and brand extensions for Slam, Surfer, and Lowrider.

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O

by Jim Sachs

Marketing Your Product to Licensors Part Three in a Series

nce the selection process for a successful property and product match has been made, it’s time to call the licensor or agent and pitch the opportunity. What I find particularly interesting about this potential interaction is that the product owner believes he or she is offering a huge opportunity to the property owner, but the property owner believes the product owner is getting an even bigger opportunity.

So, how do we make this relationship work? First, the product owner has to be realistic as to exactly what the product line offers the licensor.

Start-Up Companies

If the company wishing to acquire a license is a startup firm, it does not have any presence in the market place. Fishing for a license with such poor bait can be problematic, but the disadvantages of being a start-up can be conquered with an effective and compelling strategic plan to pitch to the licensor. Extolling the virtues of the product, creating a marketing plan, and coming up with a distribution plan are very important.

The company seeking to acquire the license must prove a reasonable projection of success through market research and must also justify that the market and demand for the product would ultimately benefit the property owner. The licensee must also demonstrate how the product line would be marketed and distributed. A distinct advantage of having a unique product is that the licensor cannot shop around for another company that is producing a similar product.

Licensors want to know they are not putting a new company into business by virtue of the license alone.

They want to know the potential licensee has a plan in place to make the licensed product successful. The licensor also wants to know that distribution is in place, so having key account factory representatives ready to go is vital. These sales people must already have contact and experience with targeted retailers. Licensors also want to know what they can expect in regards to

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Licensing 101

market penetration and subsequent product life expectancy. For example, where does the placement of the product start in terms of distribution channels.

Well-Established Manufacturers

The reverse scenario is that the product manufacturer or potential licensee is well established but has no experience with licensing. This company seeks to gain immediate entry into the licensing world by securing an “A” property. The only way this can happen is if an “A” property owner is discontent with the current licensee or if the property owner is looking for more lucrative deals with competitors before a current licensing agreement expires.

Most likely, a company new to the licensing game will have to be satisfied with picking up a “B” license.

This gives them the opportunity to develop into a key player in the licensing business. Regardless of what class of license the company chases, the company would still have to justify to the licensor that it is deserving of the license and can succeed with it. Once again, the company would have to develop a comprehensive plan utilizing all of its mature and existing assets. This would include highlighting all of its current buyer and retailer relationships, product quality, creativity, edge over competitors, and financial health.

From the licensor’s perspective, the company must consider and prove to the licensor how it is going to help build and extend the license brand equity. Potential licensees must be excited about the prospect of owning the license and there has to be a convergence of attitudes and goals. When both parties are equally excited about an opportunity, success will follow.

•••• Jim Sachs has 30 years of licensing business experience and has served as vice president of sales, marketing, and licensing at Chein Industries. He spent the past 10 years in partnership with Steve Harris at Harris-Sachs LLC Licensing.

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Marketing Memo

The Brand Secret to Making

Deeper Connections

by Ted Mininni, president, Design Force Inc. xperiential marketing is a tactic used by brands to appeal to consumers’ senses and engage them more meaningfully. Experiential branding goes much deeper. These brands have a core and philosophy that align every aspect of their brands to deliver a highly engaging customer experience. It’s a powerful differentiator—generating excitement and pleasure for consumers that lead to establishing brand preferences, purchases, and loyalty.

Entertainment brands are experiential by their very nature. With countless entertainment choices vying for attention, the customer experience must be a brand’s central focus or it will be overlooked in favor of other choices that not only promise, but also deliver.

True experiential brands work to deepen relationships with consumers to become a meaningful part of their lifestyles.

They accomplish this by delivering the brand in 360 degrees.

Every aspect—from tangible products and services offered in real and virtual settings to each consumer touch point on every marketing platform, traditional and digital—delivers a

E

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unified, consistent experience. These experiences are holistic, appealing to the physical senses, emotions, and minds of consumers. To all of this, entertainment brands add one more dimension: they feed the imagination and need for fantasy that all human beings have and enjoy.

Disney, Starbucks, Virgin, and Nike are good examples of experiential brands that appeal to dedicated groups of consumers who have become zealous fans who engage with them as lifestyle choices.

Experiential brand owners understand that consumers’ responses depend on their individual perceptions of, and their level of interaction with, their brands—as passive observers or as more engaged participants. So is it surprising that innovative apps have integrated new digital experiences for kids and adults to interact with their favorite entertainment properties in a more intimate manner? Is it surprising that toy and entertainment brands such as Hasbro’s Transformers and Nickelodeon’s Teenage Mutant Ninja Turtles are working with licensees in new consumer product categories, or that these kinds of properties are delivered 24/7 on multiple platforms: movies, TV series, video games, mini websites, and mobile content? The key to continuing growth is to increase interactivity between these brands and consumers.

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Brands that excite the consumer’s “subconscious mind on an emotional level are very powerful since they stimulate the decision-making neural area of the brain.”

In order to be as successful as Disney has been for decades, experiential brands must continue to enhance experiences and deliver surprises to constantly delight consumers, while remaining authentic to the brand and anticipating rising levels of fan expectations. It takes dedication to create and maintain experiential brands—to keep them on track, fresh, and exciting—but the loyal fan bases they create demonstrate how effective this strategy is. A major part of the strategy? Licensing.

There are significant challenges in extending entertainment brands into licensed, packaged products, especially when the perception is that many products within a particular category can be quite similar and packaging does little to change that notion. When it comes to licensed product design, simply incorporating the property’s key artwork as a visual cue isn’t sufficient. For the hottest entertainment properties to be successful for licensors and licensees, the 360-degree, core brand experience must be extended. The core values that appeal to their fan base must be leveraged, in a manner that is art and science, into a comprehensive licensing program. Data obtained from research helps to pinpoint the aspects of the brand that resonate with consumers. The information must be translated into visual cues and selective brand communication that lead to instantaneous recognition, trigger a pleasure response, and motivate purchases. Brands that excite the consumer’s subconscious mind on an emotional level are very powerful since they stimulate the decision-making neural area of the brain.

This isn’t a simple process. When developing a

Summer 2013

style guide to support a licensing program, the question must be asked: How can the brand’s core promise, visual elements, and brand communication be leveraged to add value to the overall brand experience? In other words, how can the brand heighten the experience of its fans via licensing, rather than merely delivering the expected? Achieving this creates value because it continues to affirm fans’ devotion and their adoption of the brand as a lifestyle choice. It surprises, delights, and continues to feed their anticipation of what might be coming next.

Without a style guide in place, it is impossible to keep product and package design in alignment with the core brand or to maximize consumers’ experiences. Without it, the experiential strategy breaks down at retail, a crucial part of the brand continuum.

When brand owners seek validation for style guide development, the question shouldn’t be about how much revenue it will generate on its own. Instead, the focus should be on how much value it will create for the brand, which in turn will generate revenue through increased product sales and reinforced consumer loyalty.

Style guides should be used to develop distinctive, ownable products and packaging. They allow brand owners to support licensees, build partnerships, and deepen relationships. Well-developed style guides help to reassure licensees that their products and packaging will align with every other licensee’s, regardless of category, leading to greater

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brand recognition and sell-through. Examples and suggestions assist licensees in visualizing how design assets, brand communication, and packaging can be implemented in key consumer product categories. Understanding this, it’s easy to see how value is created along the entire chain from licensor, to licensee, to consumer.

Many highly regarded entertainment properties have significant heritage; they must be well understood and deftly handled when implementing a licensing program. Disney brilliantly assembled some of its most famous animated female stars for its Princess franchise. Classic characters, such as Snow White, Cinderella, Ariel, and Rapunzel, and newer ones, such as Belle, Jasmine, Pocahontas, Mulan, and Tiana, were brought together to form a new entertainment brand capitalizing on royalty.

Each of these characters was either royal by birth or by marriage. The package design utilizes a deep pink signature color, employing it in “fabric” borders with scrolled flowers, vines, and satiny ribbons to reinforce the Princess brand. The principle visual design element is a sparkling, scrolled, diamondstudded tiara that appears toward the bottom center of all branded packaging. Yet, visual cues are used to identify each princess in an individual manner—there is no mistaking Belle for Cinderella, for example.

Regardless of how many licensed products appear in the

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marketplace, there is instantaneous recognition of the Princess brand. This is achieved by leveraging all of the visual cues that spark a strong emotional response from little girls. As a result, the Disney Princess brand has vaulted to the top among licensed entertainment brands in 2011, according to Forbes magazine.

Other top licensed entertainment franchises execute their programs in a similar manner. It’s no accident that Lucasfilm’s Star Wars, Sanrio’s Hello Kitty, and Disney/Marvel’s Spider-Man continue to dominate in the world of licensed consumer products.

The brand owners prove that using experiential branding strategies and licensing programs expertly with these classic properties deliver great results year after year. It will be interesting to see whether fast-rising licensed newcomers such as Rovio’s Angry Birds will have the same staying power. If they take a page on experiential branding from leaders such as Disney, Nickelodeon, Sesame Workshop, DC Comics/Warner Bros., and the Cartoon Network, they will. Otherwise, these brands, like so many others in the past, will become nothing more than short-lived fads.

For toy and entertainment properties, as well as for all consumer brands, nothing engages and excites like experiential branding. Nothing creates more buzz, a stronger fan base, and deeper emotions. Because it isn’t superficial, nothing has the staying power of experiential brands.

•••• Ted Mininni is president of Design Force Inc., a package and licensing program design consultancy to the consumer product and entertainment industries. He can be reached at (856) 810-2277. Ted blogs about package and licensing program design at www.designforceinc.com.

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Licensing and the Unconscious Mind

Marketing Memo

Look beyond sales and marketing to build a successful business.

W

by Philip Graves, author, Consumer.ology: The Truth About Consumers

hen I first started out in marketing 20 years licensed artist or character and the feelings they ago (and before I understood anything elicit are experienced at the same time as the prodabout consumer psychology), I thought uct is encountered. If the two are congruent, there is licensing was a waste of money. every chance that the feelings experienced will be misNow, I have a very different view on the benefits of attributed to the product. brands affiliating with an established identity through Two factors are critical for successful licensing in licensing. Though it is sometimes done poorly, when it terms of consumer psychology. First, a good fit is done well evidence proves it can be successful. between the brand’s proposition and the qualities assoUnderstanding how licensing influences consumer ciated with the licensed character create a more powbehavior helps organizations make better decisions. erful impact as each reinforces the other. Second, the Think of the human brain as working at two levels: the more consistent the core message is, the more reinunconscious and the conscious mind. The unconscious forced those associations will become. mind has the capacity to process a vast amount of our Multiple studies have show that the results can be surroundings. On the dramatic. Researchers at We are aware of what our con- the University of Pennsylother hand, the conscious mind processes a small scious mind is focused on, but vania found that children amount. Of course, we are what is less well known is that we weren’t just attracted to a aware of what our con- have no direct link to our uncon- cereal more when it had a scious mind is focused on, scious, which drives our actions.” well-known character on but what is less well the pack—they liked the known is that we have no direct link to our uncon- taste better, too. Another study conducted this year at scious, which drives our actions. the University of Liverpool found that children didn’t For example, if someone was asked to draw a $10 just eat more of a celebrity-endorsed product when bill, without referencing it, he or she probably would- they’d seen an ad for it, they ate more when they saw n’t include many details to the design. However, when the celebrity separately from the product. you’re handed one, you immediately know what it is As I explain in my book Consumer.ology, the real and what it signifies. This is because it’s the uncon- action is taking place in the unconscious mind. Don’t scious mind that knows what a $10 bill looks like—the expect consumers to be able to explain which licensed conscious mind doesn’t have the time. One of the con- equity will work best. They’ll give you an answer, and sequences of this is that things that aren’t really con- they’ll believe they mean it, but they’ll be using the nected with the focus of our attention can change our wrong part of their brain.

•••• perception of what we’re looking at. This misattribuPhilip Graves is the author of Consumer.ology: The tion, as psychologists call it, happens all the time.

Truth about Consumers and The Psychology of ShopWhen it comes to a product that is enhanced by licensing, the unconscious associations connected to the ping (Nicholas Brealey Publishing).

“

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Licensing Expo 2013

Art & Publishing

Penguin Young Readers Group Gets Sassy

Grosset & Dunlap, an imprint of Penguin Young Readers Group, has partnered with infant development brand Sassy to publish a series of books specifically designed to foster babies’ development.

Developed in collaboration with Sassy’s team of early childhood development experts, the Sassy: Inspiring the Senses series is designed to be interactive, engaging, and inspiring to all of the senses. Interactive components, patterns, colors, textures, words, and designs will be introduced at age-appropriate stages, stimulating babies’ physical, intellectual, emotional, and social skills.

Grosset & Dunlap will launch the series with four books in the fall. Each interactive book will focus on a different stage of development, while introducing characters, animals, shapes, and objects throughout the books. The book series will also reflect Sassy’s unique and highly recognizable design style.

Sassy is at the forefront of innovative and entertaining product design created for infants and

Dissero Brands Represents Rachel Hale

young children. Sassy incorporates an expert-based approach to developing products suited to the perceptions of a child: fascination, communication, imagination, and exploration, as experienced through the senses of vision, taste, hearing, and touch. The partnership between Penguin Young Readers Group and Sassy was developed by Sassy’s licensing agency, Lisa Marks Associates Inc., as part of a broader comprehensive licensed products program.

Dissero Brands’ Rachael Hale licensees are driven by a worldclass brand, supported by a sustainable customer and revenue base, and highlighted by a proven business model and globally strategic marketing plan. As a leader in animal photography, the Rachael Hale brand has captured “the world’s most lovable animals” in images that can be seen on a wide range of products across Rachel Hale’s Luke & Leia bedroom set more than 60 countries. This includes Rachael Hale greeting cards, calendars, stationery, bedding, apparel, and giftware. The Rachael Hale brand offers a strong online presence, a full design service, and more than 3,000 images for licensees to use.

Dissero Brands owns and manages the Rachael Hale brand.

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Buyenlarge Licenses Historical Archive

Buyenlarge is a historical archive aggregating many private collections, including 16th century maps, Civil War combat photography, Chinese firecrackers, and the U.S. Marine Corp. The archive has more than 40,000 individual images. Every image is stored in high resolution, making images easy to convert into products.

Buyenlarge has 20 licensees for products including Tshirts, tin signs, e-books, and bookmarks. Licensees include Urban Outfitters, Amazon, Forever 21, Earthbound Trading, Flying Saucer Pizza, and Ronnie Sellers. This year, Buyenlarge is expanding into military PX stores with a variety of products. Also new this year is the pin-up art of Peter Driben and the naturalist illustrations of Ernst Haekel.

Peter Driben’s pin-up art

Summer 2013

Benton Arts Partners with Lisa Marks

Benton Arts has expanded its properties. Lisa Marks, president of Lisa Marks Associates Inc., was appointed as the licensing agent for So Totally True, a lifestyle character line designed for health and beauty products, apparel, and accessories. The Dear Dumb Diary made-for-TV movie, based on the book series from Scholastic, will air on the Hallmark channel on September 6.

The Catwad brand has partnered with BrownTrout Publishers for calendars, Decal Girl for electronics skins, Jaag Plush for plush toys, RecycledPaper Greetings for greeting cards, and Ripple Junction for T-shirts. Benton Arts is also looking to expand the It’s Happy Bunny brand, based on the little bunny with a big attitude. Benton Arts is looking for interested licensees in all categories across these four brands.

MHS Licensing’s New Artists

MHS Licensing will introduce artists Marcie St. Clair, Stacey Yacula, Lisa Weedn, and Terry Doughty. Marcie St. Clair lives by the mantra, “A smile is worth gold,” and her positive attitude and energy is reflected in her artwork through bright colors, encouraging messages, and an unexpected visual perspective. All of St. Clair’s talents Terry Doughty’s wildlife art and skills come together in the home décor consignment store that she owns. Stacey Yacula’s images capture the innocence of youth with simple strokes and endearing characters. Lisa Weedn’s work wraps her love of the written word around her passion for bold color and design. Weedn and her mother, internationally known Flavia Weedn, co-authored more than 60 gift books, in addition to guided journals for pre-teen girls and a series of children’s books. Terry Doughty is a selftaught artist who entered the wildlife art field 16 years ago. An avid fisherman and hunter, Doughty’s art incorporates all elements of the outdoor experience in his work.

MHS Licensing will also introduce new images from its already successful artists. Collectively, these art properties generate more than $100 million in annual sales through licensee partners.

So Totally True bag

The Licensing Group Shows New Brands

The Licensing Group Ltd. represents the Italian-based property Ciao Belli, available for the first time in the U.S., consisting of more than 100 images of whimsical kittens and puppies. Open categories for the U.S. market are apparel, accessories, infant soft goods, stationery, calendars, novelties, and plush.

The Purple Turtle promotes respect and love of the environment through a simple but effective message of “Use Less.” Purple Turtle is looking for U.S. publishing, games, toys, calendars, stationery, school supplies, and novelties.

The Los Angeles Police Department (LAPD) is supported by a number of licenses in the toy, collector, and apparel categories. Key available categories include remote control and ride-on toys, costumes, posters, calendars, novelties, and collectibles. Income generated from its licensing program provides benefits to the officers and families of the LAPD. Ciao Belli The American Collection, interpretations of a wide variety of American government and military icons, is available for licensing worldwide in the categories of collectibles, domestics, health and beauty, stationery, and apparel.

The Licensing Group Ltd. continues to represent the properties Bitter Girls, Malibu Life, Heart Girl, Flight Patterns, Bluewater Productions, Car Culture, Andrea Alvin Portfolio, and Jabbawockeez. The Licensing Group also represents manufacturers and offers licensing consulting services to clients.

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Licensing Expo 2013

Art & Publishing MGL Launches New Brands

MGL Licensing will launch TanTan (boys) and MoMo (girls), from British graphic artist Reilly, following the success of his last collections Kashi Kisu and Back2Front. Reilly continues to be a hit with licensees and retailers worldwide, having previously worked with fashion brands such as Jimmy Choo, Ray Ban, and LVMH. Penguin Children’s recently signed an exclusive global publishing and intellectual property partnership deal for the preschool brand Marsh Mellow, created by MGL. Penguin Children’s acquired digital, film/TV rights, as well as merchandising rights for toys and gaming. MGL will handle all other categories, including apparel, BTS, and accessories.

Extreme Zombies brings zombies into the 21st century as funny, trendy monsters of the night who are into extreme sports. This boys’ graphic brand has secured licensees worldwide. With its edgy graphics and sense of humor, the original Extreme Zombies concept is ideal for boys ages 8 and up.

The Hot Foot crew is seven kids completely devoted to extreme sports, with plenty of competition between the boys and girls. The Hot Foot brand utilizes the street imagery of urban youth culture. Products include clothing, posters, mobile phone fascias, party gear, and stationery.

After 15 years working as a graphic designer, Valentina decided to branch out into other forms of art. Her bright, colorful, detailed images have acquired many international partners to her licensing program. This year will see products launched in stores worldwide.

Porterfield’s Fine Art

Porterfield’s Fine Art Licensing is the exclusive representative for painter Jane Wooster Scott’s American landscapes. The agency will show an initial portfolio of more than 100 top images from the Wooster Scott archives, available for licensing worldwide. Porterfield’s has also introduced the images of Canadian artist and landscapist Michael Swanson, as well as tropical and beach images of Australian artist Cindy Wider.

Porterfield’s artists include Janet Stever, Joseph Holodook, Maureen McCarthy, Val Stokes, Tom Wood, Bob Pettes, and Anne Mortimer.

Marcia Treiger Launches Blind Spot

Marcia Treiger, a contemporary photographic artist, announces the launch of Blind Spot Fine Arts—Art for Discerning Buyers Around the Globe, and plans to focus on licensing images for commercial products as a prominent business strategy.

Interior designers will also find select groupings of artwork perfect for commercial, retail, or residential spaces.

Licensing images from Blind Spot Fine Arts will give its clients a greater opportunity to choose several images, not just one. Clients can find exhibitions grouped in 20 to 30 bodies of work featuring related images.

Blind Spot Fine Arts sells fine art and imagery to clients, including corporate and commercial designers, architects, hotel art buyers, and interior designers.

Blind Spot also licenses contemporary imagery to larger corporations. Blind Spot offers art for commercial and corporate spaces, real estate developments, retail spaces, restaurants, and images for commercial products.

Beach scene, by Cindy Wider

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Licensing Expo 2013

Art & Publishing

Avanti Expands into Licensing with Lisa Marks Associates

Global humor brand and greeting card publisher Avanti Press Inc. has appointed licensing agency Lisa Marks Associates Inc. to develop its Avanti brand licensing program.

The Avanti brand delivers its visual humor and written wit through its global network of retail partners. Avanti communicates its upbeat, fun attitude through the antics of memorable and compelling characters.

A comprehensive line of consumer products is planned, with initial collections targeting multiple categories, including apparel and accessories, gifts and stationery, domestics and home décor, media and publishing, office supplies, pet products, and party goods.

Avanti is positioned in more than 15,000 stores in North America, and thousands more worldwide.

Keith Williams

Keith Williams’ Ferald characters are humorous with genuine warmth. Ferald’s “every kid” persona is easy to relate to. He likes to draw, play, read books, dance, nap, build things, and go on adventures. Emotions and situations that children go through were instilled in Ferald.

Ferald, targeted toward kids ages 2 to 8, has a nonexclusive license with Zazzle Inc. for pillows, mugs, tote bags, and more. Keith Williams is interested in products in all categories, especially children’s apparel and plush toys, with manufacturers of all sizes. The company is looking for an exclusive licensing agency for representation and licensing for Ferald in the U.S. with worldwide connections.

C Mar Corp. Introduces Ñañarito and Ña Brands

Ñañaritos are smiles hidden in colors, textures, and shapes. Ñañarito is an officially registered trademark, ready to reach school bags, closets, desks, and purses. Designer Marian Carro launched her characters as a brand in 2010. Acknowledging the diversity of licensing applications that the characters have, Carro founded C Mar Corp. to serve as the brand’s licensor. From her paintings and sketches, the art department has developed a variety of patterns and images that allow endless possibilities.

C Mar Corp. has two distinct brands. The Ñañaritos brand features hand-painted characters with a magical story. They come in different patterns designed for the baby, kids, and early teen markets. The particular style of the artist is displayed in the distinctive brush strokes and the canvas texture present in all images. Ña is a brand where the Ñañaritos characters take an edgy twist, while still remaining friendly and kind. Using the original pencil sketches, the designers have developed a line for teens that

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delivers a mischievous touch.

Licensing opportunities for the Ñañaritos and Ña brands include apparel and fashion, accessories, gifts, novelties, office and school supplies, publishing, stationery, paper goods, and crafts.

Summer 2013

Wiley’s Dummies Launches New Products

Dummies, a branded imprint of Wiley and the world’s best-selling reference series, has signed new licensees for this year. Favi Entertainment will produce Smart TV For Dummies, a smartstick and keyboard bundle, which enables access to a computer and all video storage devices for streaming video and apps through a TV. Triumph plants will provide a selection of fruit and vegetable seed kits and potted plants. DreamHost will provide an Online Webhosting For Dummies service. Vision Wines’ line, Wine For Dummies, caters to the novice winedrinker, with labels that include phonetic spellings of the grape varietals, easy-to-understand descriptions, and simple food pairings. 4D Global Partners will provide a Wireless Phone & Service Bundle for Samsung Galaxy S III with accessories and For Dummies instructions with eBook. Wiley is also interested in categories such as consumer electronics, home improvement, co-branded bundles, events, services, housewares, games, toys, and gifts.

Euro Lizenzen Represents Keith Haring

Euro Lizenzen, a German independent licensing agency, continues to represent American artist Keith Haring. Recently, Germany-based company Plomo-O-Plata launched a line of high-end scarves, which were presented at the Bread-andButter trade fair in Berlin in January. Case Scenario has produced iPhone, iPad, and laptop covers for Haring fans. DKNY recently launched the “Be Delicious” art Keith Haring scarf, DKNY collection, inspired by Haring. Haring, the late New York artist, was inspired by the city and used the walls of the city as his canvas. Reebok paid homage to the young artist, who died in 1990, by launching a Keith Haring collection in February. This retro-inspired line features much-loved Reebok Classic silhouettes, each with Haring staple icons, such as the “Everyman,” “Barking Dog,” and “Radiant Baby” interspersed throughout the colorful designs.

Atlantyca Entertainment has appointed Euro Lizenzen as its German licensing agent for the Geronimo Stilton brand. Euro Lizenzen will oversee all licensing and retail activities for the Geronimo Stilton Classic, Animated, and Kingdom of Fantasy brands throughout Germany, Austria, and Switzerland. The company will seek licensing and merchandising opportunities within all key product categories.

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Art & Publishing

The Wildflower Group Secures New Partners

The Wildflower Group has secured Mighty Fine, Precious Moments, and Cloud9 Fabrics for HarperCollins Children’s Books’ Goodnight Moon.

Mighty Fine’s range of infant and toddler designs will be based on the characters, icons, phrases, and scenes from the bedtime book. The upcoming apparel line includes tops, bottoms, dresses, onesies, rompers, and fleece clothing.

Precious Moments will release a line of infant gift products made of resin, glass, porcelain, ceramic, dolomite, vinyl, and paper. Products include clocks, bookends, water globes, photo frames, banks, figurines, covered boxes, photo albums, growth charts, and nightlights. These gift products will be available in card, gift, specialty, and department stores next spring.

Cloud9 Fabrics will launch Goodnight Moon fabric to the quilt, craft, and home sewing community in time for the holiday season. These fabrics will be available at independent fabric stores by December. The fabrics will be 100-percent certified organic cotton.

The Wildflower Group is currently in discussions with potential Goodnight Moon licensing partners in categories including accessories, bedding, and health and beauty aids.

Buffalo Works Licenses New Art

The Buffalo Works will showcase artists and designers including Jim Shore, Dan Di Paolo, Just The Right Shoe, Pozy Bears, Mary Fisher, Georges Monfils, and Julie Browning Bova. The licensed products displayed from each client will show how the brand appears on retail shelves. Products span categories such as furniture, home décor, stationery, gift, and apparel.

The Buffalo Works will launch a new artist, Vintage Inspirational, which has a mid-century modern artistic style.

Dark Horse Acquires Tomb Raider

Crystal Dymanics—a Square Enix studio—and Dark Horse Comics have partnered to bring Tomb Raider and the re-imagined Lara Croft back to print in the comics world. Tomb Raider will include the highly-anticipated origin story for Lara Croft and will chronicle her journey after her adventure in the Dragon’s Triangle.

Dark Horse will launch the Halo: Initiation mini-series in August. This new miniseries will be written by Halo 4 writer and comics veteran Brian Reed, with art by Marco Castiello (Secret Invasion: Front Line, Star Wars: Purge).

CCP Games, an independent developer of massively multiplayer games, partnered with Dark Horse to create a new comic series called Eve: True Stories, Tomb Raider based on the massive universe of Eve Online and Dust 514. In addition, the two companies will collaborate on Eve: Source, a hardcover book full of information and exclusive artwork that will be the definitive guide to the Eve Universe.

Jim Shore

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Summer 2013

Aadarsh Pvt Ltd. Showcases India’s Purple Turtle

Aadarsh Pvt Ltd. will showcase Purple Turtle, one of the first original children’s properties from India to gain international attention. Purple Turtle is a gender-neutral property that entertains and educates children. More than 100 Purple Turtle books have been published in India, and will soon appear as both books and apps in other international markets, including Russia, Ukraine, Kazakhastan, Latvia and Estonia, Romania, the U.S., the UK, and South Africa. The lead writer of the Purple Turtle children’s books is American author Gail Hennessey, who used to write for National Geographic.

The philanthropic organization UseMission is a corporate social responsibility entity (CSR) of Purple Turtle. It has been established to promote the Purple Turtle message to “use less.” Licensing agents for Purple Turtle include The Licensing Group (North America), Empire Multimedia (South East Asia), and Absolute Licensing (Germany, Switzerland, and Austria). The enthusiastic reception of Purple Turtle has led to the establishment of a Purple Turtle preschool in Bhopal.

Purple Turtle is the main character in the series. He is a young freshwater turtle who is different from all the turtles because he was born with a purple shell. He is a true friend who is always ready to help anyone, anywhere, anytime. A brave, clever, idealistic, sharp, and imaginative turtle, Purple’s personality has been highly influenced by his loving, caring, and supportive parents. Their commitment to keep their son happy and encourage his adventures throughout brings out the best in Purple.

Harris-Sachs LLC Stays True to Its Mission

After weathering the changing tides of the licensing industry for the past 22 years, the clear mission statement from day one has always remained the same: knowledge, experience, integrity.

Harris-Sachs (H-S) is a full service consultancy founded by Steve Harris in 1991 to provide expertise in assisting manufacturers to successfully and profitably compete in the world of licensing.

Jim Sachs joined Harris as his partner in 2004 to bring his long experience in consumer product licensing to the growing business. In addition, Ken Harris provides account management to several of the firm’s major clients. This team has been able to deliver a total service ethic to many product categories they represent, such as apparel, plush, home textiles, rugs, food, beach, fabric, candles, and drapery. Each client has different needs that must be addressed. H-S studies the individual business, and attends trade shows and markets to make sure all of their clients are able to acquire the best licenses for their companies.

As the economy has struggled since 2008, the need to minimize risk has never been greater. Securing a powerful brand has become the No. 1 goal of almost every manufacturer today. H-S has been able to bring winning brands to their clients and enabled them to gain retail space when the old formulas no longer guarantee placement. A major part of this strategy involves the abil-

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ity to call upon the many contacts H-S has access to. Personal relationships built over the long term are an important asset in a world of texts and emails from strangers to other strangers.

As the company heads into the future, change will occur faster than ever before. Those who are ready for it and, in fact, welcome it are the ones who will continue to be leaders. Harris-Sachs LLC stands as a proven leader in licensing consulting.

Charter

Member

Harris - Sachs LLC Complete Licensing Services Experience • Knowledge • Integrity 159 Brandon Court Neshanic Station, NJ 08853 Tel (908) 369-5358 Steve Harris Jim Sachs Ken Harris

steveh@licenseadvisor.com www.licenseadvisor.com

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Art & Publishing

Get Whimsical with Caleb Gray

With his whimsical style that combines contemporary and retro, artist Caleb Gray has kicked off this year with new licenses, product debuts, and new art. One of Gray’s newest licenses is Onehundred80 Degrees, which just introduced his nostalgic Santas and snowmen on its Tinsel Town line of glassware, melamine plates, and napkins. Cake tins and cookie tins will be added to the line this Christmas.

In addition, Gray’s recently debuted insulated tumbler designs for Tervis are a fun and stylish way to keep drinks hot or cold. Among the newest designs are nauticaland beach-themed tumblers for West Marine stores and camping and road tripping tumblers exclusively for Camping World. New this spring was Gray’s canvas wall art for kids, from Oopsy Daisy. First to launch are the Airborne series of mod airplanes and the Making Waves series of groovy boats. Both are available in two different sizes.

Caleb Gray Studio is also preparing to roll out several new collections, including crafty Hand-Cut Christmas, the soft and sweet Little Darling, and the mod and bustling Super Speedway, plus new additions to the Hipster Hop property.

Simply Eartha Launches Licensing Campaign

Simply Eartha, the lifestyle brand established in tribute to Eartha Kitt, announced its full-scale licensing initiative for international and domestic opportunities.

The Simply Eartha brand, established by Eartha Kitt’s daughter, Kitt Shapiro, started with the launch of home décor items that utilize the images, handwritings, and wisdom of Kitt. Designed by Shapiro to communicate Kitt’s style, the line currently covers household items, deconatural stone coasters rative pieces, and lifestyle products.

The company is actively securing and seeking licensing partnerships and deals that are consistent with the brand and its message. Open product categories are textiles, giftware, non-competing household items, home décor, clothing, and publishing. In addition, strategic alliances that extend the brand, but also continue to adhere to the highest quality and most organic options, are also strong considerations.

Currently, the Simply Eartha line includes coasters, throws and pillows, glass plates, and wall art. In addition, the images and likeness of Eartha Kitt have been lent in support of the Colon Cancer Alliance (CCA). An agreement with Cards.com for Official Eartha Kitt Visa debit cards donates a fee to the efforts of CCA.

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New Gifty Ideas

Gifty Idea Greeting Cards & Such! will debut new dog- and cat-inspired images this year as a fifth-year exhibitor. Debuting images include those from the latest collection Love Pups, a series of puppies with heart-shaped markings in their furry coats. Gifty Idea will also present more from its Pups in Blooms collection, featuring puppies and kittens paired with colorful flowers. Gifty Idea offers clean, contemporary dog- and catinspired photography and designs for license, custom photography, and design. It also has a full retail line of doginspired greeting cards and stationery.

Current Gifty Idea licensees include Leap Year, Leanin Tree Inc., Jean Marie Creations, Willow Creek Press, Canadian Group, Elizabeth’s Studio LLC, Jays International Trading C.C., Trademark Art, Dvinni, and Celumanix S.A. Gifty Idea’s photography and designs have been published as 12-month calendars and on gift bags, greeting cards, puzzles, gift wrap, school supplies, magnets, notepads, posters, canvas art, fabric, and cell and tablet device wall paper.

Gifty Idea is looking to expand its licenses in all categories domestically and abroad.

Summer 2013

Zolan Celebrates 35 Years

The Zolan brand celebrates 35 years in the licensing industry. The Zolan Brand’s main focus at the Expo is to highlight its Americana Collection and Made in America products.

New products with the Made in America label include bags and accessories, puzzles, prints, and greeting cards. A new line of brightly colored baseball fabrics will be introduced from Elizabeth Studios. As Zolan continues its co-brand partnerships with Collegiate, International Harvester, and John Deere, it is also expanding its partnership opportunities internationally.

The message of the Zolan brand is all about Life’s Simple Pleasures as new product categories of interest begin to develop in children’s clothing, back to school, toddler lifestyle products, and stationery.

Jeff Leedy Offers Golf and Skiing Images

Jeff Leedy Studios has licensed a humorous series of golf and skiing images to Elizabeth’s Studio, located in Milltown, N.J. Elizabeth’s Studio produces 100-percent cotton prints designed to be sold primarily to over-the-counter retail fabric markets for use in quilts, wall hangings, bags, apparel, and curtains.

Ninja Kitties Got a Happy Start

Ninja Kitties, a new property introduced at Licensing Expo last year by Kayomi Harai, landed a deal in South Korea for smartphone accessories. This year, Ninja Kitties will welcome partnerships in toys, apparel, apps, stationery, and other categories for kids of all ages and young women.

Two new properties, Wadorables and Little Moo, are in development. Wadorables is a collection of little girls in kimonos. Little Moo is a baby cow with a big ribbon in a colorful flower garden. Both properties will debut at Licensing Expo.

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Licensing Expo 2013

Art & Publishing

Licensing Liason Signs Painted Peace Art Poles

My1story Brings Basketful of Surprises

Licensing Liason and Studio M/Artful Home & Garden launched the Painted Peace Art Poles collection in January. Painted Peace Art Poles are designed by artist Stephanie Burgess by burning designs into wood and incorporating the natural knots and imperfections of the wood into the piece. Burgess finishes by painting the pole with bright colors and messages about the earth, sustainability, family, and peace.

In July, Studio M will launch new products for its patio entertaining and garden categories, including chalkboards, address plaques, wall art, drinkblots, and now Art Poles.

Licensing Liason will also showcase the launch of Carson Home Accents’ 24-piece home décor collection, including canvas wall art, table ploques, wooden trays, wall key hooks, magnets, trunks, mugs, pitchers, mirrors, and candlesticks.

Wild Apple’s New Artists

Wild Apple is proud to work with a diverse range of talented artists. Its portfolio spans from classic to modern with a variety of subject matter, including florals, coastal, and seasonal to fashion, wine, and coffee. The artists create marketable, décor-friendly images for the home. Wild Apple will present three new artists—Anne Tavoletti, Courtney Prahl, and Marco Fabiano. Wild Apple releases new collections monthly that are ideal for giftware, tabletop, bath, floor coverings, stationery, textiles, and ceramics.

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My1story goes beyond the original fairytale storylines and takes newly illustrated characters on creative and imaginative adventures, such as a fashionably pink Riding Hood, a zany wolf cub named Harry, a daredevil named Humpty, and other kid-friendly takes on these timeless classics.

My1story has signed a new licensing partnership with toy manufacturer and distributor Playvalue Inc. to develop a preschool toy line for Latin America under its Play with Me brand. The line will feature plush, arts and craft sets, educational toys, and puzzles. Playvalue is also developing a back-to-school line to launch next year.

My1story is looking to develop other products and categories in the preschool segment such as publishing, toys, home, and apparel in the U.S. and other international markets.

Ziggy Makes New Friends

Ziggy & Friends Inc. has signed two new licensing agreements for Ziggy, the comic page iconic everyman. New Ziggywear will arrive from 5th Sun later this year and new calendars will be available this fall from Willow Creek Press.

5th Sun, known for its novelty licensed apparel for mass-market retail, will release multiple Ziggy designs in both youth and adult sizes for mass-market sale, as well as a separate shelf-stock line of exclusive T-shirt designs for sale in specialty stores.

The new shirts, which will hit stores later this year, arrive just ahead of the new 2013 Ziggy published products from Willow Creek Press, including Ziggy page-a-day daily calendars, monthly wall calendars, and personal planners.

Summer 2013

Howard Robinson Collection Adds New Licensees

This past year, Howard Robinson Collection has added new licensors and expanded into new territories, including Korea, Hong Kong, China, Japan, UAE, and Turkey. Licensing and distribution deals have been made with Impact Photographics and Bookmark Trenz in the U.S.; Primemotion in Canada; Deluxebase in the UK, Europe, and UAE; Rye Merc in Denmark and Sweden; Star in Italy, San Marino, and Vatican City; and Seikyokudo Co. in Japan. A licensing agreement is in place for a new product producing HD, 3-D framed pictures for 200 stores across China. Howard will actively seek further partners interested in licensing, developing, or distributing lenticular products, particularly throughout South America and Russia.

Rye Merc has licensed 37 designs for canvas and glass prints throughout Denmark, Sweden, and northern Europe. Star has produced a range of products, including gift bags, handbags, umbrellas, lamps, clocks, room dividers, and furniture items. Shinysuncrosstitching is currently charting a range of 48 designs of dog breeds for stitch kits in the U.S. Art Brands has extended its T-shirt license for its dog breed range to also include stickers, bumper stickers, and posters. En Vogue is producing decorative ceramic tiles, Kidzstijl of the Netherlands is producing wall stickers, and Anandtex International India is producing throws and blankets.

Howard Robinson Collection will also showcase the Howard Robinson 3-D Lenticular Collection. This includes 58 designs in a range of products, includings bookmarks, notebooks, jotters, magnets, postcards, keyrings, pictures, posters, cups, mugs, bottles, puzzles, Christmas cards, gift tags, and coasters.

Summer 2013

Sports Afield Has Gun Safes

Sports Afield introduces a new line of gun safes, designed and built by the Heritage Safe Co. of Idaho. The safes include a portable handgun safe secured with a cable and six models of large standalone safes designed for long guns. The large gun safes include 18-, 30-, 32-, 41-, 48-, and 60gun models, are fire-resistant, and feature electronic locks. The first safes were rolled out this spring at Costco.com and Far West Sports.

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Toys & TV

Superman Gets a Reboot With this summer’s Man of Steel film, Superman fans are hoping the 75-year-old franchise will be reinvigorated just as Batman was with The Dark Knight.

by Stuart Fischer

n 1938, Joe Schuster and Jerry Siegel created a character who would come to life first in a comic book and quickly graduate to star status as the subject of a series of theatrical films, a live-action TV series in the early 1950s, a Saturday morning animated TV series in 1978, and a full-length liveaction motion picture produced by Warner Bros. Pictures.

The writer-artist team created Superman for the comics and sold their character to National Comics (now DC Comics) for a small sum of money. They signed away all rights to their creation, never anticipating that he would become a worldwide icon.

Superman first appeared in Action Comics No. 1.

The issue sold so well that the publisher gave him his own title, Superman, in 1939. Both titles were published on a monthly basis.

Superman’s extraordinary abilities, chiseled good looks, red cape, and S scrawled across his chest drew envy from his legions of male fans.

His powers were astonishing. Possessing super strength, super speed, the ability to fly, invulnerability to bullets, and X-ray vision, Superman seemed almost invincible. However, the creators wanted to make him more human, so they gave him one enemy: Kryptonite.

An element from his home planet, Krypton, Kryptonite was the only substance that would harm him. Superman escaped from Krypton before the planet’s demise—his parents put him in a rocket and sent him blazing through outer space until he finally landed on Earth as a baby.

I Man of Steel action figure, from Mattel’s Movie Masters line

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Superman is a symbol of great power and good.

He has ethics and is kind to all he encounters—with the exception of the bad guys. However he even treats villians with respect because he does not want to hurt anyone, no matter how deadly.

With the great success of the comic, other companies saw the potential for Superman as a product, a TV star, and a movie star. A series of theatrical shorts were made, as well as a series of animated theatrical films—with some fine animation—which are still in demand today.

Later, a series in the early 1950s hit TV airwaves (in first-run syndication). That show, starring George Reeves as Superman, was a solid hit. It still runs on TV today in various parts of the world.

Filmation created an animated TV series in the 1960s for the CBS Saturday morning schedule. In 1978, Superman hit the big time with his own major motion picture by Warner Bros. That film became a huge hit and spawned sequels in 1981, 1983, and 1987.

Superman did not appear in the movies again until 2005 with Superman Returns. It did well at the box office, but didn’t quite live up to Warner Bros.’ expectations.

As for toys and the world of licensing, Superman has been featured in numerous toy lines, model kits, Halloween costumes, food products, syndicated newspaper comic strips, and even a Broadway play in the 1960s. Hanna-Barbera devised a TV and licensing program with Kenner Toys in which the toys ran along with the television show for a season, giving all the characters in the show more exposure. The cartoon series took place in the 1980s and 1990s, and Superman was a regular cast member in the animated television hit The Super Friends by Hanna-Barbera, as well as The Justice League animated TV show by Warner Bros. TV. An off-beat, live-action primetime show aired in the 1990s titled Lois and Clark, which focused on the

Summer 2013

relationship between Lois Lane and Clark Kent, but the portrayal of Superman remained loyal to the comic book.

Because Superman was the first comic book superhero to gain national attention, some think that he is not a flexible character. DC Comics has attempted to broaden his horizons in an effort to keep him contemporary. Yet, consumers may not be ready for him to appear in a drastically different way, because that would be tampering with a solid image that one generation after another has adored.

The upcoming film, Man of Steel, due out June 14, will be produced in part by Christopher Nolan, who was producer on all three of the recent Dark Knight films. Nolan also co-wrote the Man of Steel screenplay.

Superman will be played by Henry Cavill, a relative unknown compared to his co-stars, who include Russell Crowe, Lawrence Fishburne, Christopher Meloni, Kevin Costner, and Diane Lane.

In anticipation of Man of Steel, global master toy licensee Mattel unveils its wide-ranging toy line, including action figures, vehicles, play sets, and collectible figures. Mattel will also introduce Man of Steel QuickShots, featuring elements of flight and strength incorporated into the toy. Also supporting Man of Steel are global licensees such as Lego, with construction sets inspired by memorable scenes from the film. Rubie’s Costume Co. will create a new line of Man of Steelinspired costumes and accessories for both kids and adults. Thinkway Toys will create a full role-play line, R/C vehicles, and interactive figures, while Jakks Pacific will create a range of Man of Steel and Superman collectible figures and novelty toys.

••••

Stuart Fischer has worked at Universal Studios, where he helped develop shows to be sold to networks, as well as Hanna-Barbera Productions, where he developed shows to be sold to the networks and to the first-run syndication market.

Fischer has written the books Kids’ TV: The First 25 Years and The Hanna-Barbera Story: The Life and Times of TV’s Greatest Animation Studio, as well as various magazine and trade journal articles. He also created his own comic book, The Man-O-Saurs.

Summer 2013

Toys Inspired by Man of Steel

Man of Steel Pop! Vinyl Figure, from Funko

General Zod Pop! Vinyl Figure, from Funko

Man of Steel Metropolis Showdown, from Lego’s DC Universe line

Man of Steel Faora, General Zod, and Jor-El figures (from left to right), from Mattel’s Movie Masters line

The Licensing Book • 131

TIA Perspectives

Toymakers Transform Their Brands into Entertainment

U

by Kristin Morency, communications specialist, Toy Industry Association glydoll, Transformers, My Little Pony, and Sky-

landers … What do these toys have in common?

To start, they are international household names.

They also feature unique characters or compelling story-

lines that transcend ages and cultural divides. While they

were brought to life by the toy industry, these properties

that have distinguished our Uglydoll brand in the mar-

ketplace,” says Alita Friedman, chief brand officer at Pretty Ugly. “Our unique distribution over the past 10 years brought our product

to an interesting mix of

retail partners including

have become true lifestyle brands that are found in just

toy

departments,

apparel and fashion, backpacks and lunchboxes, school

stores,

comic

about every retail aisle, spilling out of toys and games into

supplies, and more.

For the past several years, licensed properties have rep-

resented more than a quarter of annual toy sales. Many

successful brands in the toy box originated from a block-

buster movie, television show, or app. But the Toy Indus-

try Association (TIA) has been tracking a growing trend of toymakers incorporating distinct personalities, unique

physical features, and rich back stories into their product

lines, in the hopes of turning their property into a brand

museum shops, book-

book

shops, and even high- end

department stores. Ugly-

doll is now not only a toy brand but also a lifestyle

brand and an upcoming

entertainment

property,

with an animated feature film based on the ‘Ugly-

verse’ currently in devel-

that cuts across multiple consumer categories.

opment.”

Pretty Ugly LLC

kids and adults alike

Pretty

Ugly

Friedman believes that

trans-

the

dolls—into

to incorporate the

plush— known as Uglyan

interna-

tional phenomenon with

more than 25 licenses in

North America and many

more slated for Europe,

Asia, South America, and Australia.

“Our artist created cute

and (hardly) ugly designs

132 • The Licensing Book

have grown loyal to

formed its specialty line of

brand

with

each opportunity

characters into their daily

activities

through

licensed products such as

phone cases and pajamas. In fact, Pretty Ugly has moved

to a fully licensed model and now outsources its manufacturing.

“[This decision has] allowed our management team to

strategize and focus on our Uglydoll brand itself … and

Summer 2013

has enabled us to focus on new marketing opportunities

and to engage in more international opportunities,”

explains Friedman.

three years to develop

and was based on a then-

unproven play pattern

and brand new kids’

Hasbro

Hasbro might be one of the very first toymakers to fully

embrace its role as an entertainment and lifestyle company.

intellectual property that

didn’t have the support

of linear media such as

The Transformers toy line, created by Hasbro in the early

film or TV.

long entertainment fran-

sensed “something special” was in the works. “With the

books, several ani-

established the toys-to-life genre, creating a compelling

1980s, spawned a decades-

chise including comic

mated

television

Entering the toy business for the first time, Activision

launch of Skylanders Spyro’s Adventure in 2011, we firmly

new play pattern that merges the virtual and physical

series, award-winning video games, blockbuster live-

worlds in a magical way that sparks the imaginations of

young fans remains fiercely loyal to the brand—and its

ters, Skylanders offers an exciting, story-driven adventure

action films, and theme park rides worldwide. A legion of

kids. Featuring a cast of heroic, relatable, and fun charac-

associated licensed products—all thanks to the toy manu-

that kids love,” says Maidy.

ing alien robot toys.

allow kids to expand their in-game and real world adven-

facturer’s decision to create a storyline for the transformAlso launched in the 1980s, Hasbro’s My Little Pony

was re-introduced in 2003. An animated TV series, My Lit-

As Activision continues to introduce new toys that

tures and engage emotionally with

the brand, the company has

tle Pony: Friendship is Magic, was created by Hasbro Stu-

forged 150 promotional

dios and is currently broadcasting in 170

and licensing partners

countries. Building on My Little Pony’s long history of rich story-

telling with messages of friendship

and how to get along with others, the

TV show has helped strengthen the

success of the My Little Pony brand.

“It’s great to see that fans of all ages have embraced the

My Little Pony: Friendship is Magic animated series,” says

Donna Tobin, senior director at Hasbro. “The show has

quickly become a pop culture phenomenon that has

appealed to fans across the globe … because the core cast

of ponies all have uniquely-defined personalities that

everyone—regardless of age or gender—can relate to.”

Activision Publishing Inc.

To date, Activision Publishing is Skylanders franchise

worldwide. Activision is

dedicated to a merchan-

dise program that offers “meaningful brand extensions for

our fans,” says Maidy.

“Since innovation is central to Skylanders, it’s impor-

tant to us that all consumer touch points bring to life the

magic of Skylands. This focused, measured approach has served us well across all the categories we’re in,” she says.

The Future of Play

TIA President Carter Keithley believes that there are

endless opportunities for toymakers dedicated to becom-

ing true entertainment and lifestyle companies. “Bringing

toys to life through storytelling, and brands to life through

licensed products, allows young fans to eat, sleep, and

breathe their favorite characters,” says Keithley. “From a

has exceeded $1 billion in U.S. retail sales. According to

business standpoint, what more could a company ask for?

partnerships at Activision, the kids’ gaming property took

more fulfilling and enriching way to play.”

Ashley Maidy, vice president, head of global licensing and

Summer 2013

From the perspective of a parent or child—nothing beats a

••••

The Licensing Book • 133

International

T

Brand Licensing in Emerging Markets The Top 10 Mistakes to Avoid

by Ben Goodger, partner, Edwards Wildman Palmer LLP

o capitalize on the forces of globalization, companies often license their brands in emerging markets. Before developing a multinational licensing strategy, licensors should be mindful of the cultural, linguistic, legal, and financial differences that operate in different territories. A successful multinational licensing strategy requires an understanding of the nuances of global consumer and market behavior and the capabilities of licensees in the various markets.

Here are 10 mistakes that licensors often make when licensing to emerging markets:

Mistake 1: Not taking the local market into consideration

The most common mistake is assuming that a formula for the licensing or franchising of a brand in one market will work equally as well unadapted in another market. Take the success of KFC in China, for example.

KFC is twice as large as McDonald’s in China, whereas the reverse is true elsewhere. After initial failure in Hong Kong, KFC hired local management, who understood that KFC had an immediate advantage over McDonald’s because Chinese consumers prefer pork and chicken to beef. Additionally, menus were customized to appeal to local tastes. KFC’s predominately red color scheme is also culturally advantageous in China, as red symbolizes good fortune and joy. There are many examples of brands that are household names in their home markets but have tried and failed in emerging markets. Home Depot, which has seen U.S. success, closed in China in February 2011, whereas Britain’s B&Q has flourished by consistently reading the market better.

Mistake 2: Assuming your brand is as celebrated in the local market as it is at home

134 • The Licensing Book

Senior executives in Western corporations are often misguided about how well-known their brands are in other markets. When negotiating with the licensee, brand owners need to articulate their value proposition, not simply assume that it speaks for itself. Actions for cancellation or revocation of a prior registration of the same or a similar trademark, often filed in bad faith, regularly fail simply because an unconvincing case was made that the mark was well-known enough in the particular territory. Building up a brand takes patience and persistence and a licensor should offer licensees marketing and funding support to do so.

Mistake 3: Assuming licensees in emerging markets have the same attitude as licensees in mature markets

Brand owners must educate local licensees in emerging markets on operating and managing a successful license instead of simply negotiating a deal and waiting for royalties. In Asian markets, licensees traditionally believe that a license relationship with initial term of three to five years is unlikely to be renewed.

Therefore, they push to maximize short-term profits to the detriment of the brand’s long-term interests. It is a better idea to invest effort in selecting licensors and educating them on the long-term development of the brand and support these words with actions.

Mistake 4: Assuming you can quickly find the right partner and tie up a successful deal

The importance of investigating the track record, background, and bona fides of licensees cannot be overemphasised. Take your time and find the right partner rather than close a deal with any partner. Plan for multiple visits and don’t rush.

Mistake 5: Not thinking about an exit strategy

Summer 2013

“ If a deal has to be done quickly, a licensor must ensure it can terminate the license arrangement quickly, easily, and cleanly if things are not working out. We know of a 10-year license agreement entered into for a key territory, which was only terminable on breach of contract or insolvency. In a later acquisition of the licensor’s business, the purchaser walked away from the deal when it discovered the license’s onerous terms. On the other hand, one needs to give the licensee a reasonable “run in” period (at least three years) to establish the brand and generate revenue.

Mistake 6: Not prioritizing international property protection

Protection is essential, especially in markets liable to infringement. In China, your brand will be known by a local Chinese name, whether you choose it or not.

Pfizer chose to ignore the local name for its Viagra product, which was called “Wei Ge,” meaning “Mighty Brother,” instead preferring a different Chinese transliteration, which nobody used in practice. Inevitably, someone else registered the name “Wei Ge” as a trademark and started selling similar products in China, giving Pfizer a headache. Brands should cover all names by which its product will be known and register the name, all logos, and domain names. The more official registrations you have, the stronger your position will be when problems arise.

Mistake 7: Failing to register your license

In some countries, notably in Asia, recording a trademark licensing agreement with the respective government authorities is important. This secures the rights of the actual trademark owner to use the trademark, countering any vulnerability to cancellation for non-use, and will enable the trademark owner to take direct enforcement action. It can be also be very important to ensure royalties can be remitted from the country to the brand owner.

Mistake 8: Failing to carry out checks on your supply chain

This can be disastrous for brand owners. Appointing shoddy sub-contractors has historically resulted in poorly policed production processes, leading to overproduction and counterfeits flooding the market. Some

Summer 2013

Brand owners must educate local licensees in emerging markets on operating and managing a successful license instead of simply negotiating a deal and waiting for royalties.”

brands, such as Gap, have also struggled to recover their public image after clothes were found being made in sweatshops. You should exercise a great deal of vigilance over the supply chain and vet sub-contractors.

Mistake 9: Not exercising royalty audit rights

In our experience, more than 95 percent of audit exercises reveal underpayments of some kind, often not due to malicious intent, but incompetence or over-narrow interpretations of what is covered under the licence terms. Many licensors are reluctant to enforce audit rights, due to potential licensee hostility. The best practice is to automatically audit all licensees on a rotation basis so that no licensee feels singled out.

Mistake 10: Not taking action against counterfeiter and counterfeit goods

Some brand owners ignore the problems of counterfeit goods in distant emerging markets. Unless you stop this early on, it will only continue to grow. The counterfeit items will flood the emerging markets and will damage sales in your home market as well. Dealing with counterfeit goods should be budgeted for and swift, aggressive action should be taken. It is crucial to ensure that the goods are destroyed (not just impounded because they may be surreptitiously sold once the brand owner has disappeared) and to publicize actions in the local press to warn other counterfeiters who then often switch to softer targets.

The process of licensing brands in emerging markets requires consideration of legal, cultural, and commercial issues. Companies should be sure to seek professional advice regarding any questions, problems, or concerns in this area.

•••• Ben Goodger is a partner at Edwards Wildman Palmer LLP in London. He has more than 20 years of experience in advising companies on strategic management issues relating to the commercialization and licensing of valuable intellectual property. Goodger is widely recognized as a leading international property practitioner.

The Licensing Book • 135

Licensing Administration

Big Data

Means

Big Business for Brand Licensing

by Amos Biegun, CEO of Counterpoint Systems veryone’s talking about “big data” and its value to businesses, but what does it mean for the brand licensing industry?

Is it just a technical term that affects big companies with big servers sitting in the basements of their big buildings? Absolutely not. Big data is a term that refers to the billions, and even trillions, of bytes of information that holds answers for companies struggling to stay on top in the new economy.

There are more singular transactions today than ever before, and less value per transaction.

The days of the one-toone sale are over, as consumers are leveraging technology to do everything from ordering movies to buying their favorite pair of shoes online. Every order is a custom order today, with consumers sitting in the driver’s seat. Orders are placed at all hours of the day and night, in different countries, languages, and currencies worldwide. Add to that different colors, sizes, formats, and brands, and the complexity becomes even greater and more difficult to manage.

This is what the consumer expects, so trying to bring

E

this process back to the way it was even five years ago will not work.

The rules of supply and demand still apply, but the demand has gone way up as technology has opened the floodgates on what is possible to deliver.

Take the music industry, for example. Consumers have been ingesting music at increasing rates and in different ways for the past decade. While songs and complete albums are available at both brick-andmortar stores and online retailers such as iTunes, companies like Spotify offer unlimited music streams 24/7 to monthly subscribers online for a flat fee. According to Daniel Eck, the founder of Spotify, it takes 242 streams to generate the same amount of income as a digital download; and one digital download is only 10 percent of the value of a CD. Therefore, 3,000 streams on Spotify are the equivalent of a full CD downloaded on iTunes or bought at Best Buy. The amount of revenue derived from both types of sales is the same, however the cost of administering the sales is different.

For companies like Spotify, big data means the abil-

“Big data for licensing means distilling all of the information that comes into an organization into smaller, more digestible bites.”

136 • The Licensing Book

Summer 2013

ity to gather and analyze all of the data that went into a single sale to realize profits today and project future earnings. For a record label, this means processing a more than 3,000-fold increase in the quantity of their transactional data, and all of the same (or even less) sales revenue, royalties, and profit.

The requirements for the licensing industry are the same. The complexity of each sale will continue to increase exponentially, as well as the quantity of data and the necessity to service that sale while ensuring long-term organizational efficiency and profitability.

The ability to analyze sales on a very granular level is the challenge facing all licensors and retailers in the 21st century, regardless of product, service, or industry. However, those managing intellectual properties have the added challenge of managing rights as well.

While some retailers manage the direct, one-toone relationship between manufacturer and buyer, the licensing industry supports relationships between licensors, licensees, agents, and the buyer.

There are many more players in the licensing game, each with their own earning and reporting requirements.

Big data for licensing means distilling all of the information that comes into an organization into smaller, more digestible bites so it can be more easily ingested, processed, audited, analyzed, and utilized for various purposes.

My company, Counterpoint Systems, has been managing large amounts of data for a long time. Our 25-year history has shown us that licensing is a complex business with ever-changing terms across an ever-growing list of channels and formats. We are constantly looking at ways to improve the use of key data for our clients in a sea of billions of transactions.

For such a complex challenge, we felt that we had to look outside of our core industries for the solution.

We found that solution in the transport industry, where hundreds of millions of passenger journeys are managed daily. Counterpoint has paired up with Corethree in the UK to provide a solution called

Summer 2013

Datahive for this exact problem.

Corethree associates are experts at taking big disparate data from numerous systems and sources, ingesting that data into their sophisticated Core Engine quickly and efficiently, and making use of that data for anything ranging from consumers looking up real-time travel timetables on their iPhones to management making business intelligence decisions on how to operate their network. Leveraging their technology and our experience, Datahive will allow our customers to compress large volumes of data into smart, accessible results for their royalty, auditing, marketing, and business intelligence needs.

Right now, information is sitting in silos at some of the world’s largest licensing organizations. Our goal with Datahive is to unclog the arteries of the back office to realize opportunities for easy auditing, revenue tracking, management reporting, and greater profits.

Big data is a challenge today, but in a few years’ time we will be asking ourselves how we survived without it, just like we have come to regard email and mobile technology.

••••

Amos Biegun is the CEO of Counterpoint Systems, a provider of rights and royalties software for the media and entertainment, brand licensing, and music industries. For more information, visit www.counterp.com.

The Licensing Book • 137

Marketing Memo

Building a Lasting Property Create an Effective Positioning Statement to Spark Consumer Interest

by Amy Opheim, owner, C3 Marketing and Copywriting

W

hen launching a new property, you

have to make sure that your story is

ing the questions above, you’re probably getting a

clearer picture of your property. The next step is to

crystal clear. Your character may be

make sure that what you came up with is actually

a long list of reasons why your concept is super-duper,

property be important to them? There are probably a

all about—in one succinct sentence—is one of the

make sure that the ones you bring to the forefront of

ground.

will care about. The best way to find out is to ask them.

can identify with, but they won’t be able to connect

shop, or conduct a quick survey online.

that you’re offering. What is it about your property

statement is clear and meaningful, pat yourself on the

larger than life in your mind and you’ve probably got

but the inability to share exactly what your property is biggest reasons that new licenses never get off the It is important to build something that consumers

with your brand if they don’t know exactly what it is

that’s appealing to them? The look? The characters? The backstory? How do you communicate all of that in a

single sentence?

In marketing speak, X marks the spot, as in “XXX is

meaningful to the consumer. Will they care? Will your lot of special elements to your idea, but you need to your marketing strategy are the ones that consumers

Ask your friends, stop consumers in the aisle at a local Once you’ve got confirmation that your positioning

back. You now have more than a sentence. You have a

stake in the ground. You’ve made a commitment to what your property is all about and what you have

promised your future customers you will be. Use this

the only XXX that XXX.” So how do you fill in those Xs

sentence as a check point when pitching your property.

with a list of questions and answers:

brand a good match? Is the activity something that your

• What makes it special?

consumers are interested in? Being able to clearly artic-

and create an effective positioning statement? Let’s start • What kind of property is this?

• What is your property’s personality like?

• Who would be interested in the property?

• What similar properties are out there?

• What is different and better about the one you are

Does the type of product fit with your property? Is the

property would be involved in or that your potential

ulate why your character makes sense to a potential li-

censor is a powerful sales tool.

Your property is special enough for you to do the

work it takes to get to market. Getting clear on what it

pitching?

is that makes it so special, and committing to consis-

The last two may require a bit of homework, such as

license.

Answering the first four questions should be simple.

taking a visit to local stores and doing some online re-

search, but having a clear picture of the competition is

vital. You need to know how they market themselves

tently delivering on that, is the way to build a lasting

••••

Amy Opheim is the owner of C3, a consultancy

to be sure that your property will stand out in the con-

helping toy industry partners create clear, concise,

After doing your competitive research and answer-

formation on C3’s services, call (562) 972-1855 or

sumer’s mind.

138 • The Licensing Book

and compelling marketing strategies. For more inemail amysnowopheim@gmail.com.

Summer 2013

continued from page 26 teryear, if not free. In some cases, the entertainment property might be a secondary version of an established game, as with Fruit Ninja/Puss in Boots or Angry Birds Star Wars. If there is revenue to be earned for the entertainment licensors, it’s not nearly at the scale seen in the old video game days. A sliver of that income might be made up via in-app purchases of virtual goods—a category that didn’t even exist a couple of years ago. (There have been lots of exclamations like this one: “Wait a minute. You can make money by selling people make-believe goods that don’t really exist except on their screens? Really?”)

That’s just one small example of change. But there are lots of others. And a big part of LIMA’s job is to keep licensing professionals current with the latest thinking and techniques in marketing, branding, and, of course, licensing. I encourage you to take advantage of all of our educational resources.

If you read this in time in Las Vegas, register for Licensing University, which offers more than 20 seminars and presentations about a wide range of licensing-related topics. Go to the free keynote sessions. It will give you food for thought, and solid professional training.

During the rest of the year, make a point of attending LIMA’s ongoing webinar series. They’re free for all LIMA members (there’s a charge for non-members).

Experts from within and outside the licensing industry address both basic and advanced topics, accessible right from your desk.

And, if you’re looking for a top-flight year-long structured course of study, check out our Certificate of Licensing Studies (CLS) program.

The reality is licensing is a business of change.

You’re going to have to work to keep up with it. And LIMA can give you some excellent resources to stay on top of your game.

••••

continued from page 27 ing to popular UK kids’ website Swapit.co.uk, which runs dedicated research among its registered users, by the end of 2012, 32 percent of UK 8 to 16 year olds had their own tablets.

Great! But how long will tablets keep their “cool?” Worrying about the longevity of a platform that hasn’t even proven itself for licensing seems crazy. Yet this sort of thinking is going to be essential for the new generation (and I count this generation in that cohort) of licensing professionals.

Just as an American publisher may look askance at his London-based competitor who has to print books in 10 different languages to sell the same vol-

ume as can be achieved in good old English within the U.S., so licensors are going to have to cover many, and rapidly evolving, media platforms if they are to win real, solid awareness for their 21st century IP. ••••

Summer 2013

Marty Brochstein joined Licensing Industry Merchandiser’s Association (LIMA) in 2008. Brochstein was a business journalist for more than 20 years, covering the consumer products and retail industries. He spent five years as senior editor of Television Digest and was the founding editor of Consumer Multimedia Report. He was also editor of Consumer Electronics Monthly and Electronics Merchandising, and spent time with Discount Store News, Chain Store Age, and Home Furnishings Daily.

Kelvyn Gardner has been in the international licensing business for almost 30 years. Since 2006, he has served as the managing director of the UK division of LIMA. Gardner contributes to the judging of the UK Licensing Awards and is a trustee of the industry's charitable company, The Light Fund.

The Licensing Book • 139

The

Of Counsel

Blues II

Licensing 101, Part 69

by James Kipling, Of Counsel This article is the 69th in a series devoted to the documentation of the licensing relationship and elements of a typical license agreement.

I

n Part 68 of this series, we reviewed the implications of the recent U.S. Supreme Court case involving the book publisher John Wiley & Sons in infringement litigation, brought under the United States Copyright Act, against an importer of books. The books in question had been produced outside the U.S. under a copyright license granted by Wiley, and the license agreement included a territorial restriction having the effect of prohibiting importation of the books into the U.S. The purpose of the territorial restriction was to protect the domestic marketplace, for Wiley’s own sales, to retailers in this country.

Copyright Law Implications

A problem arose when a party unrelated to Wiley or to its licensee began to import copies of the books that had been produced by the licensee. The books had been sold by the licensee in various countries that were within its licensed territory. The importer had purchased quantities of the books at retail in Thailand at prices so far below those charged by Wiley in the U.S. that the purchaser was able to ship

140 • The Licensing Book

and import the books into this country and still undercut the prices charged by Wiley to its domestic retailers.

In the past, such territorial restrictions in copyright licenses were routinely enforced against purchasers as well as against the licensed manufacturers of the products in question. However, in the Wiley case, a divided Supreme Court held that the territorial restriction was trumped by the “first sale” provision of the U.S. Copyright Act, at Title 17 of the United States Code. After the Wiley decision, territorial restrictions in copyright licenses will continue to be enforceable against licensed manufacturers, but not against purchasers of the licensed products, whether from the licenseemanufacturer or from the licensee’s customers.

Trademark Law Implications

Federal Trademark Law is commonly known as the Lanham Act and is part of Title 15 of the United States Code dealing with commerce and trade. Regulations issued under the Lanham Act specifically address importation of products that are considered “grey market goods,” because of trademark considerations. The regulations define situations in which certain categories of such products are permitted to be imported, and others in which shipments of such products are to be refused entry into

Summer 2013

U.S. commerce.

“Restricted grey market articles” are those that are subject to exclusion and are defined as products that are made outside the U.S., bear a federally registered trademark or one substantially indistinguishable from a registered mark, and are being imported without the authorization of the U.S. trademark owner.

Even though a trademark may have been applied to goods legitimately, in certain instances importation of the goods will not be permitted unless authorized by the U.S. trademark owner. For example, the goods may bear the trademark legitimately, but the products are excluded if the mark has been applied outside the U.S. by an independent licensee of the U.S. trademark owner for sale outside the U.S. Also, since trademark ownership is determined on a country-by-country basis rather than being international (as is the case with copyrights), a mark may have been applied legitimately under authority of a foreign trademark owner other than the U.S. owner (or a related entity) when the mark is separately owned in the respective countries. The same rules apply if the trademark has been applied to the goods by the U.S. trademark owner or by a related entity for sale outside the U.S., but the goods are “physically and materially different” from articles authorized by the U.S. trademark owner for importation and sale in the U.S. (Note that a special exemption can apply in this instance if the products are labeled clearly as “not authorized by the U.S. trademark owner for importation and is physically and materially different from the authorized product.”)

In situations of uncertainty, shipments are to be detained at the port of entry by the U.S. Customs Service. During detention, the potential importer has

Summer 2013

an opportunity to establish that the shipment falls within a “permissible importation” category. For example, it might be able to establish that the U.S. trademark owner and the foreign trademark owner are really the same entity or one owns or is owned by the other. It also may dispute the determination that the goods are physically and materially different, or it may apply the labeling described above. If it fails to prevail, however, the importer’s shipment is to be seized and becomes subject to forfeiture.

The New Reality: Implications for the Licensing Industry

Licensors as well as licensees may feel a bit queasy at this turn of events. Copyright enforcement has been the remedy of relative certainty with respect to grey market goods. Before the decision in the Wiley case, territorial restrictions upon the licensed manufacturer could be imposed and enforced with confidence against the licensee encumbered by the restriction as well as purchasers of the restricted products from the licensee. Trademark licenses incorporating territorial restrictions may offer solace, but, as can be seen above, trademark license restrictions have potential enforcement gaps that had not been the case with copyright protection. After Wiley, the game has changed and neither the Copyright Act nor the Lanham Act provides the comfort of certainty.

•••• James Kipling has represented licensors and licensees for more than 20 years, negotiating entertainment, sports, artwork, brand, invention, and technology agreements. He is Of Counsel with Dinsmore & Shohl LLP in Cincinnati, Ohio, and can be reached at (513) 977-8536, jim.kipling@dinsmore.com. Copyright: ©2013 James M. Kipling. All rights reserved.

The Licensing Book • 141

Directory of Properties, Products and Services

THE LICENSING BOOK, Summer 2013 “THE LICENSING BOOK” (ISSN-0741-0107) is published quarterly by Adventure Publishing Group, Inc.®, 307 Seventh Ave., Room 1601, New York, New York, 10001. Periodicals postage paid at New York, NY 10001 and additional mailing offices. © 2013 Adventure Publishing Group, Inc ®.

All rights reserved. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopying, recording 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.

Activision .....................................................................10, 11 Adventure Publishing Group ..............................................143 American Greetings ............................................................75 ASPCA ............................................................................105 BBC .................................................................................144 Beanstalk .............................................................97, 99, 101 Blind Spot Fine Arts...........................................................123 Bravado .................................................................14, 15, 17 Coca-Cola..........................................................................21 Delta Children’s Products .....................................................77 Discovery Channel ............................................................107 Dissero Brands..................................................................121 Dreamworks .............................................................6, 7, 8, 9 Entertainment One Family ...................................................37 Felix the Cat Creations ........................................................87 Gateway Licensing....................................................127, 142 GM Licensing ...................................................................142 Harris-Sachs.............................................................125, 142 HBO ..................................................................................31 Hyperdesign ....................................................................111

142 • The Licensing Book

KidzBop .............................................................................69 Mind Candy .......................................................................71 Moose Toys ........................................................................63 MTA ............................................................................12, 13 Nerd Corps ........................................................................61 Nickelodeon.....................................................................1, 2 Penguin Young Readers .................................................23, 25 Purple Turtle........................................................................81 Rubies Costume Company ...................................................89 Saban Brands...................................................................4, 5 Sakar.................................................................................53 Sony Pictures Consumer Products .........................................19 Suzy’s Zoo..........................................................................41 The Joester Loria Group.......................................................39 The Toy Insider....................................................................93 The Trump Organization....................................44, 45, 46, 47 Uglydoll .............................................................................83 Warner Bros. Consumer Products ...................................33, 55 Zodiak Kids ........................................................................65

Summer 2013

The Voice Reaching Both Trade and Consumers

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