Summer 2014

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Summer 2014

Departments 14 Editor’s Point 16 Licensing News 20 LIMA Update 21 LIMA UK 26 Hot Shots Debra Joester and Joanne Loria will be inducted into the LIMA Licensing Hall of Fame.

38 Inside Retail Carol Spieckerman examines retailers looking to the past in order to plot their futures.

40 Property Profile: The Simpsons 44 Toy Licenses: How Important Are They Really?

Lutz Muller analyzes the licensed toy segment.

48 TIA Perspectives 52 Property Profile: Despicable Me 54 A Look Inside: Sony 80 Property Profile: Peppa Pig 82 Hot Shots: Dumb Ways to Die Volume 31, NumbeR 3

88 A Look Inside: Paramount

Features 22

Licensing Trends: What Is Your Client Really Worth?

Weston Anson, Jeff Anderson, and Jemma Samala analyze how licensing trends reflect society’s cultural preferences. In today’s digital world, consumer awareness of brand personalities and their licensed products is sure to continue to skyrocket.

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State of the Industry Q&A

We chatted with licensors, consumer products manufacturers, licensing agents, and additional industry experts about the hottest topics currently surrounding the licensing industry.

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Licensing Expo 2014

Our annual showcase of the licensing industry’s biggest event, including more than 60 pages of coverage of the character and entertainment, corporate branding, and art and publishing sectors.

90 Property Profile: Sons of Anarchy 92 Corporate Corner: Beanstalk 112 Talking Social Media 113 Marketing Memo Stephen Reily explains the importance of brand ambassadors in the digital space.

114 Licensing 101 124 Publishing & Licensing 128 Marketing Memo Ted Mininni discusses how to elevate a classic brand to superstar status.

132 Digital Licensing Robert Ferrari explains the importance of branded virtual goods.

134 Licensing Administration 136 Of Counsel 138 Directory

LICENSINGBOOK

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Cover Art by Hyperdesign Inc.

EDITOR’S POINT

ADVENTURE PUBLISHING GROUP INC.® Vol. 31, No. 3, Summer 2014 There is a lot of risk involved in the licensing business, and risk taking is one of the main themes I’ve been hearing about as we prepare our summer issue and get ready to attend Licensing Expo (which takes place in Las Vegas, the perfect venue in which to discuss risk taking). I’ve spent a lot of time chatting with the owners of all types of intellectual properties, from film studio executives to digital content creators. One topic that keeps coming up is, how big of a risk are you willing to take?

Industry insiders are telling me that as the economy improves, retailers are willing to take a bit more of a risk with digital properties, as they’ve seen success with untraditional properties such as Skylanders and Angry Birds.

For the licensor, is it time to let loose with a licensing program? Timing is everything. Too soon, and you risk a bomb that retailers won’t soon forget. Too late, and the wave of popularity may be waning. Also, are the licensees you’ve selected the best fit for the property? Do they understand your property and connect with it the way your consumers do (or will)? Can they make a great product quickly, and sell it in successfully?

For the licensee, is the property a good fit for your product lines? Is it going to be

14 • The Licensing Book

a huge success? In the long term, or the short term? Can you sell it in to enough retail doors? Can you meet the Minimum Royalty Guarantee (see page 136 for more on the potential pitfalls of MRGs). How much support is the licensor putting behind the property?

For retailers, is this a property that your customers are interested in/obsessed with/are even vaguely aware of? Do the products make sense for the property? Is the timing right? How big of a commitment are you willing to make for a digital or video game property?

One of the keys to success is to take a 360-degree approach to the marketing and promotion of a property and its licensed product lineup. Taking a hot app and putting it on a T-shirt and throwing it out there will probably yield as much success as you’d expect—you get out what you put in.

So now that we’re all in Vegas, are you ready to go all in? It’s really a requirement if you’re going to introduce a new property to the world of licensing. If you’ve got what it takes, put it out there, and put all your efforts into making it shine. Not everyone is a winner, but you’ll never know unless you give it your all. How big of a risk are you will•••• ing to take?

President/Co-Publisher Laurie Schacht laurieschacht@aol.com

Co-Publisher Jonathan Samet jsamet@adventurepub.com

Editorial Director Jackie Breyer jbreyer@adventurepub.com

Senior Editor Marissa DiBartolo mdibartolo@adventurepub.com

Associate Editors Christine Duhaime cduhaime@adventurepub.com

Phil Guie pguie@adventurepub.com Ali Mierzejewski amierzejewski@adventurepub.com Editorial Assistant Deanna Atkins datkins@adventurepub.com

Editorial Intern Magdalene Michalik Production Director Anthony K. Guardiola aguardiola@adventurepub.com

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

Licensing News MOVIE LICENSING

WBCP, Tonner Doll Partner to Reimagine the Leading Ladies of The Wizard Of Oz Warner Bros. Consumer Products (WBCP) and Tonner Doll Co. Inc. have announced a slate of high-end fashion and costume designers that have signed on to create one-of-a-kind looks, modeled after Tonner’s 22-inch dolls, for the leading ladies of The Wizard of Oz program. In conjunction with the celebration of the 75th anniversary of the classic film, designers including Marc Jacobs, Donna Karan Atelier, and Hervé Léger by Max Azria will design costumes inspired by Dorothy, Glinda the Good Witch, and the Wicked Witch of the West. The haute couture dolls will make their debut during New York Fashion Week at the Fashion Institute of Technology (FIT) on September 4, at which time they will be available for bidding on eBay for a charity auction. All proceeds go to the There’s No Place Like Home campaign, benefitting Habitat for Humanity.

The online charity auction, managed by Auction Cause, will continue until September 14, with gross proceeds supporting Habitat for Humanity’s work to create decent, safe, and affordable housing in partnership with low-income families.

BRAND LICENSING

Pepsi Unveils Global Fashion Capsule Collection Pepsi has unveiled its inaugural Live for Now Capsule Collection. Designed to enliven the brand’s football campaign this year, the Pepsi Live for Now collection features streetwear, accessories, and electronics created in partnership with international designers. The collection will be available internationally at retailers including Bloomingdale’s in the U.S., Colette in Paris, and Liberty in London.

The collection, featuring artwork from six street artists from around the world, includes a range of products across categories including fashion apparel and accessories, electronics, and skateboards. The line consists of men’s T-shirts, zip jackets, and swim trunks from Original Penguin, headphones from Bang & Olufsen’s B&O Play line, baseball caps from Gents, luxury T-shirt jerseys and sweatshirts from Goodlife, handmade leather chukka sneakers and slippers from Del Toro, and skateboards from SHUT—with each item displaying one of the artists’ inspired designs.

The Joester Loria Group is the exclusive liDel Toro X Pepsi Live for Now censing agency for PepsiCo North America.

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.

MOVIE LICENSING

Big Red Soda, Transformers: Age of Extinction Partner for LimitedEdition Cans Transformers fans can bring home some of their favorite characters from Transformers: Age of Extinction in the form of Big Red soda. The limited-edition cans are available in six themes, including characters such as Optimus Prime and Bumblebee. Fans can also choose between the Autobot and Decepticon series of cans.

Additionally, fans can win Transformers products with Big Red’s $25,000 sweepstakes. Big Red will give out prizes such as collectible figures, Hasbro toys inspired by the movie, apparel, DVDs, posters, and a cooler that transforms into a picnic table, totaling more than 900 products.

The Michael Bay film opens in theaters on June 27.

Jaz Alto Chukka Sneaker

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Summer 2014

Licensing News MOVIE LICENSING

BOOK LICENSING

Domo, Ghostbusters Partner for New Consumer Products Line

PMI Signs New Licensee for Goodnight Moon

Domo and Ghostbusters have partnered for a new consumer products line.

This mash-up takes a fresh approach to the Ghostbusters franchise, blending both classic and new with cross-generational appeal by casting Domo in a line of collectibles and plush for a limited time only. The line, made possible through an agreement with Sony Pictures Consumer Products as brokered by Big Tent Entertainment, is slated to hit shelves this fall.

The line will concentrate on the eccentric characters from the franchise, namely Slimer and the Stay Puft Marshmallow Man to stand alongside Domo.

The classic children’s book Goodnight Moon has inspired a collection of gifts and nursery décor by Precious Moments Inc. (PMI).

The inaugural Goodnight Moon line includes decorative pillows, bookends, a clock, photo frames, a rocking musical, wall plaques, a cloth growth chart, and a musical water globe. In addition to Goodnight Moon and Precious Moments, branded lines include the Disney Showcase Collection, Dora the Explorer, Hello Kitty, Elvis, BaZooples, and more.

Goodnight Moon products will begin shipping to retailers beginning September 15. Goodnight Moon is licensed by HarperCollins Children’s Books, a division of HarperCollins Publishers, through The Wildflower Group LLC.

ENTERTAINMENT LICENSING

Perryscope, Epic Rights to Jointly Manage Global Licensing Program for Woodstock Perryscope and Epic Rights have been named to jointly manage a global licensing program for Woodstock, which celebrates its 45th anniversary this August. Perryscope and Epic Rights will serve as global licensing agents overseeing a series of innovative initiatives that both honor and reflect the Woodstock legacy and lifestyle.

A new social media and e-commerce platform that will further engage current fans while also serving to introduce the brand to younger generations will support the licensing program. The online Woodstock General Store features a curated selection of apparel, accessories, specialty, and lifestyle products, many originally produced for the Woodstock General Store. The product execution and retail development strategies will reflect Woodstock’s global appeal, its commitment to quality, and its message of peace and positive change. The licensing program will be based on a fashion-driven lifestyle program reflecting the ongoing trend of natural and homegrown products, including apparel, accessories, home goods, and stationery.

18 • The Licensing Book

MOVIE LICENSING

40th Anniversary Texas Chainsaw Massacre Merchandise Arrives in Stores Following the screening of the restored The Texas Chainsaw Massacre at April’s South by Southwest festival and its equally acclaimed screening at last month’s Cannes Film Festival, Tobe Hooper’s horror masterpiece will return to movie theaters this summer, commemorating the 40th anniversary of its 1974 release.

Originally marketed with the now famous tagline “Who will survive and what will be left of them?” The Texas Chainsaw Massacre was just the beginning of what has become one of the most successful horror franchises in movie history. Licensees NECA, Impact Merchandising, NMR Aquarius, Rubie’s Costume Co., Funko, Fright Rags, Grey Matter Art, Plastic Head, and Star Cutouts will introduce a wide array of new merchandise worldwide as part of the celebration.

Summer 2014

LIMA Update

What’s a “Like,” a “Fan,” or a “View” Worth?

Measuring a Property’s Popularity in the Social Media Age

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

ethany Mota, Michelle Phan, Rosanna Pansino—are these going to be the next big licensing stars?

I have to admit that until YouTube began a full-scale TV and print campaign several weeks ago featuring these three prominent personalities from among the many on its channels, I hadn’t heard of everyone in this trio. I recalled reading that Bethany Mota had signed a deal late last year for an apparel line at Aeropostale, but otherwise, I knew little about any of the three. Not surprising, since I’m not exactly in their target demographic, to say the least. (I’ve since updated my familiarity with their channels, though would still hardly qualify as an expert.)

But this column isn’t designed to be a riff on how the next generation of licensing properties is always going to come from new and unexpected places as the media landscape and popular culture inevitably morph into something new. We saw it happen when video games sprung into the youth market in the ’70s and

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It’s as much art as science. Any, all, or none of the YouTube stars may turn into hot licensing properties.

The fun and potential profit is in picking the right ones.”

’80s—creating both an extremely lucrative product category for licensors, as well as a platform for new characters, such as Mario, Luigi, and Sonic the Hedgehog, among many others.

So it’s not exactly breaking news that it’s important for licensing professionals to make sure that they get outside of their comfort zones to seek new opportunities. From LIMA’s perspective, it’s something that we try to stay on top of, and try to keep members informed about.

For example, this year’s Licensing University program at Licensing Expo includes a session on “Reaching The YouTube Generation: How New Digital Companies Are Uniting Content Creators, Brands, and Consumers,” including speakers from talent agencies UTA and Fullscreen and from YouTube-based teen network AwesomenessTV. The speaker from AwesomenessTV is slated to be Disney Stores and Claire’s Stores veteran Jim Fielding, who came on board as global head of consumer products and retail—an indication of how this platform is moving toward traditional licensing-based businesses.

As I wrote earlier, it’s true that new sources of licensing properties are always popping up. Part of the challenge is simply to become aware of them—particularly if you’re not in the target demographic. But once you’re aware, there arises a fundamental question: How do you know if what you’re looking at has any resonance or staying power with the intended audicontinued on page 130

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Summer 2014

LIMA UK

Viva Las Vegas With Licensing Expo right around the corner, exhibitors and attendees must plan their visits to get the most from their time at the event.

by Kelvyn Gardner, managing director of Licensing Industry Merchandisers’ Association (LIMA) UK s I write this, most of the UK and Europe are winding down for the traditional Easter holiday break, finally with a little good news. The British Retail Consortium reports that footfall was up 1.8 percent year-on-year compared to March of last year.

That’s a rise in two of the first three months of the year.

With Easter usually reliable as another traffic booster (licensed Easter eggs are still a big seller to this day), and with government news that UK incomes finally outstripped inflation this month for the first time since the start of the recession, maybe we can look forward to the most positive Licensing Expo in years.

Planning for Expo, like any large trade event, involves a number of unrelated processes. Flights and hotels have to be found. Most of us like to know if we’ll be sharing the same plane with peers. Many of us will, and will share the same hotels, too. Poor marks, then, to the Mandalay Bay, who for this year seems to have decided that they can no longer resist the temptation to exploit delegates and have correspondingly raised rates dramatically for the duration of the show this year. Then there’s planning your week. I say “week” because, as the Expo has settled into Vegas, the typical show creep has started, with presentations, briefings, and events now popping up on the Sunday before and keeping us busy right through Thursday.

If you are an exhibitor, how do you allocate your time? Are you the busy bee type, either off your own bat or through the policy of your boss, who likes to fill your agenda with confirmed appointments from start to end?

If so, you’ll bump up against those who are convinced (with some justification) that a completely full agenda allows you no time whatsoever to deal with walk-ons.

Indeed, how much of Licensing Expo is about building on existing relationships, and how much of it is about initializing new business? That’s a classic dilemma, of

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course, and many a grey-haired executive—burned out by hundreds of trade-show visits—will struggle to explain that you never really know if the show was good for you until a month after it’s over.

Well, it’s fair comment that concrete business is often only open to assessment once the dust has settled (a singularly apt metaphor for Las Vegas, you might think).

On the other hand, I think you can get a feel by the evening of the second day as to whether the show has been good for you. Let’s face it, even deals signed at Vegas will have been weeks, if not months, in the preparation. I doubt if any walk-on actually signs up a contract on the spot during the event itself. Our industry—for better or worse—isn’t set up to work like that. What you can start to come to grips with is the weight of new stuff you’ve seen (or not seen, in a poor year). Competition is usually a positive sign. Who is back again this year, bigger and brighter than last year?

Are the delegates buzzing with gossip and intrigue, or are they flat-footed and morose, eager to wash away the day with a large martini at first opportunity? A great deal about trade shows is the feel, and Licensing Expo is no different. The venue is now mature, the visitors and exhibitors feel somewhat at home, and all of that will facilitate business. With so many new IPs in so many diverse fields about to debut, it’s time for us to take the wider business world by the scruff of the neck.

Enjoy your trip to Vegas—I know I will.

•••• 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 • 21

Licensing Trends

What Is Your Client Really Worth?

Valuing the Licensing Potential of Celebrities, Characters, and Athletes

by Weston Anson, Jeff Anderson, and Jemma Samala Weston Anson, chairman, CONSOR

Jeff Anderson, director, valuation and analytics, CONSOR

icensing trends reflect society’s cultural preferences, and are phenomena that continue to grow.

Especially in today’s digital world, with the exponential rate in the growth of information sharing, the expansion in consumers’ awareness of brand personalities and their licensed products is sure to continue to skyrocket. Brand personalities include those of celebrities, characters, and athletes.

As this segment of the licensing industry grows, we need to remember that the celebrity brand is their personal asset and intellectual property. We call this type of intellectual property the owner’s right of publicity. Right of publicity is generally defined as the right of a person to control the commercial exploitation of his or her identity, and to prevent unauthorized commercial use. Each celebrity, athlete, and character is unique, and that uniqueness is valuable.

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The History of Celebrity Licensing

Jemma Samala, research analyst, CONSOR

First, let’s look at the roots of celebrity licensing. The concept of licensing has been around for hundreds of years. Earliest examples would include those during the Middle Ages when there was the common practice of using papal or royal warrants. The Pope or royal family member would grant to a local entrepreneur a warrant or license to collect taxes, with a certain percentage paid back to the royal family. This is where the term “royalties” originated from. Moving on to the 1700s, the British nobility began to license their name under covenant to various manufacturers and retailers in return for a fee. So as we see today, companies such as Harrod’s and Turnbull & Asser carry royal warrants on their letterheads.

In the early 1900s, we began to see the licensing of

22 • The Licensing Book

individuals who we would define as celebrities. Shirley Temple started her career at the age of 3 in 1932, and after winning an Academy Award in 1935, soon began licensing out her name and image. By 1936 she was reported to have made more than $200,000 in licensing royalties.

Later, Ideal Toy was granted a license to create dolls based on her likeness, which by 1941 had sales of more than $45 million.

Soon thereafter, we saw the growth of character licensing. Superman was created in 1932 by Jerry Siegel and Joe Shuster, and eventually sold to DC Comics. By the 1940s, licensed Superman products included the popular comic books, puzzles, trading cards, and toy figures.

As we see today, superhero types of products continue to be a heavily licensed category. The increasingly popular Comic-Con International convention, held in San Diego each summer, is a testament to the big business of character licensing.

Fast forward to today, and examples of celebrity, character, and athlete licensing are everywhere. You walk into a large department store and you see Justin Beiber fragrances, Jessica Simpson clothing, and Rachel Ray cookware. Due to the growth of licensing in general, a whole industry was created, including licensing organizations such as the Licensing Industry Merchandisers’ Association (LIMA), and its annual Licensing Show in Las Vegas, where many in the industry gather each year.

What Are Rights of Publicity?

Since the popularity of buying products licensed out by celebrities, characters, and athletes continues to grow in popularity, those working in the licensing industry will most likely eventually work on some sort of

Summer 2014

celebrity-related deal. That is why it is important to understand the concept of rights of publicity.

As mentioned in the introduction, a general definition of rights of publicity is that it is a right of a person to control the commercial exploitation of his or her identity, and to prevent unauthorized commercial use. And as we see in the number of celebrity-based licensed products, there is value in the commercial exploitation of those celebrities. Our discussion of celebrities includes popular characters and athletes, because they, too, have developed their own persona. In the case of characters, the holder of those character’s rights should treat those characters as individual celebrities.

Licensing professionals should also be concerned with those rights of publicity even after a celebrity’s passing. Postmortem rights of a celebrity can be very valuable, possibly even more so, than during their lifetime. We can quickly look to examples of post-mortem licensing deals for the estates of Elizabeth Taylor, Elvis Presley, and Dr. Seuss.

How Do You Value These Rights?

In order to continue to negotiate these types of licensing deals in an educated manner for all parties, it is important to know what has value, and how value can be determined. As you know, and what you want to promote, is that each celebrity is unique. That uniqueness is what makes a person become a celebrity in the first place, and why their licensed products are attractive to the consumer. People look up to, and want some affiliation with, that celebrity.

Uniqueness also brings about many challenges in determining value. We face these challenges everyday in our valuation practice. At CONSOR, when valuing a celebrity’s right of publicity, we understand that value will vary from usage to usage. The same goes for licensing deals—there are many factors that need to be considered.

The subject of, and explanation of, valuation methods is a far more technical discussion than can be summarized in this article. In general, when we prepare a formal valuation, we look to three primary valuation methodologies, which can simply be described as the following: • Cost Method: the economic principle of substitution, used for benchmarking • Income Method: the present value of future economic benefit, used for determining unjust enrichment

Summer 2014

or lost profits • Market Method: the value based on similar assets, used for comparable transactions and benchmarking While many times these valuations are requested after some sort of dispute, it is important to get a general idea of what can be considered in a formal valuation.

Prior to entering a license agreement, parties should be aware of comparable transactions when negotiating for terms and conditions. Knowing about comparable transactions will help drive the compensation in these types of licensing deals.

There are additional compensation drivers that can determine licensing value, such as: • Level of celebrity: How well-known is the individual? Is the person a local celebrity, or an international superstar?

• Level of involvement: What is required from the celebrity? Will stock photos be used, or will live appearances for promotion be required? Will the celebrity be actively designing the product?

• Level of use: Where, when, and how often will the celebrity’s likeness be used? The name only? The name and likeness? Demonstrations?

• Level of affiliation: Is the celebrity closely associated with the product? Is the product related directly to an athlete’s sport? Does the musician use those instruments in concert?

You can deduce that the closer the product is to the celebrity’s own personal brand, the more valuable that licensed product becomes. Slapping a celebrity name on a product doesn’t always work. The relationship between celebrity and product needs to make sense.

A simple formula we use is: Context + Time = Value.

Ludacris wearing Soul headphones

The Licensing Book • 23

Licensing Trends How and when a celebrity decides to license a product can determine its success. Is licensing out your likeness on a box of cornflakes, right after winning an Olympic gold medal, valuable? It was for gymnast Gabby Douglas. While we at CONSOR prepare much more detailed valuation reports for our clients, licensees and licensors can use this simple technique when entering negotiations.

It is not to say that celebrities no longer have value when they are not actively performing or in the limelight.

Britney Spears’ perfumes continued to sell, prior to her latest resurgence, and Michael Jordan-branded products are constantly being introduced, even though he no longer plays basketball. Depending on the celebrity, the time factor in the equation may be long lasting.

Cautions

When something is valuable, including someone’s persona, there are going to be others who will try and capitalize on that value, meaning someone is going to try and steal their persona. And it’s not just celebrities who should be concerned—official licensees should be concerned too. You want to keep the value of your product high. Not only should all official parties be on the lookout for outright counterfeits, but they should also watch for products making an unauthorized use of a celebrity’s image or those claiming a false endorsement by that celebrity.

One example is the use of Woody Allen’s image by a well-known apparel company. An image of his likeness of a movie character was used as part of the design on shirts. It falsely insinuated that the shirts were a licensed product by either Woody Allen or the movie. Whether or not a celebrity cares to license his or her image out on certain products doesn’t matter. Celebrities and their license holders should both be on the lookout for these unauthorized products.

Even such small oversights by companies can be costly. Paris Hilton’s unauthorized image was portrayed in a greeting card. Although it was a relatively inexpen-

24 • The Licensing Book

sive product, with a small audience for sales, it still has value and damages were claimed by Hilton. We point this out because if you happened to be a competitor of this greeting card company and you were pursuing a licensing agreement with Paris Hilton, you would not want her image already being used on a similar product.

Protecting a brand, celebrity or otherwise, should be of utmost importance to all parties involved.

Another issue to remember is that it doesn’t matter whether that celebrity, athlete, or character’s owners ever wanted to license out in a certain product category in the first place. If someone is using your client’s right of publicity without consent, they are taking value away from your client. And value can come in many forms—financial value, reputational value, future value, etc.

Context + Time = Value. So take the time to keep your context valuable.

Celebrity Licensing Today

The value of licensing celebrities, characters, and athletes in the right context and time is a win-win for both licensees and licensors. Taking the right product and attaching it to the right celebrity can be a windfall.

We expect to see growth in all areas of celebritylicensed products. Not only do we see growth in products using celebrity names and likenesses, but also celebrities taking a greater role in creating products, and using those products to help their personal causes. Nicole Richie took a very active role in creating her fragrance collection. She drew upon her childhood memories of her mother, who would create fragrances by layering bath oils, lotions, and perfumes. Additionally, the bottle design reflects Richie’s personal style.

An example of a recent celebrity partnership is the relationship between Oprah Winfrey and Starbucks. Starbucks, which purchased Teavana in 2012, introduced a Teavana Oprah Chai Tea just in time for Mother’s Day this year. Winfrey helped develop the tea blend, which is a combination of cinnamon, ginger, cardamom, cloves, black tea, and rooibos. A percentage of sales will be donated to the Oprah Winfrey Leadership Academy Foundation. This new product is sure to be a win-win-win for all parties involved: Starbucks/Teavana, Winfrey, and Leadership Academy Foundation.

Celebrities and their representatives have gained a

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better understanding of the value of their personal brand.

With this knowledge, celebrities will be evermore on the lookout to find opportunities to expand their personal brand and to promote their personal causes.

The Communications Factor

A factor in the growth of licensing, and in particular celebrity licensing, is the level and ease in sharing information. Through the use of social media—Facebook, Twitter, Instagram—people, and celebrities, can easily share information not only about their personal lives, but also about the products they use and promote. Followers can search and post using hashtag terms and you can see all the people and places where certain products can be found. Returning to our Oprah Winfrey example, a quick search using #OprahChai on Twitter brings up images of people drinking the product and where they were drinking. Clearly, people are becoming obsessed with Oprah’s tea.

If a celebrity is active on social media—posting about their activities, what they are wearing, where they are going, who they are with—and if they have lots of followers, that celebrity can become more valuable. Every impression can carry value. Katy Perry may be on the top of the Twitter Counter board with more than 53 million followers, but her 5,600 tweets are far less than those of Justin Beiber, who has almost 29,000 tweets and more than 51 million followers. We noted earlier that Britney Spears continued to have a strong selling perfume line prior to her current resurgence. With more than 37 million Twitter followers, did keeping her name in the limelight for her products help boost her career in entertainment? In return, Spears is engaged with her audience, as she follows more than 400,000 Twitter users.

(Barack Obama follows more than 650,000.) As with successful social media campaigns, reciprocal engagement is crucial in promoting a positive brand persona.

As the ability to share, like, and post information continues to grow, so will the influence on consumer buying trends. Celebrity brands, or any brand, should keep on top of their social media in order to maintain cultural value.

Future Trends

While we are focused on the celebrities of today and

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the past, brands and licensees should keep an eye out for future “celebrities” to license. We increasingly see that celebrities are not only those who headline big budget movies or star on primetime television sitcoms, but also those who are discovered on YouTube, Netflix, or the gazillion number of reality shows on both the networks and cable channels. Whoever predicted the popularity of Duck Dynasty merchandise must be Happy Happy Happy indeed.

Successful licensing programs also exist for celebrities who are deceased. We have seen song releases and “appearances” by deceased rapper and actor Tupac Shakur. Technology continues to be a factor in how celebrities, characters, and athletes can advance their licensing potential. The use of 3-D technology, the abundance of communication platforms, and the personalities themselves, make this area of licensing a truly exciting and important industry in the global economy. The possibilities for celebrity brand extensions are headline news.

The bottom line is that there is a lot of potential in the licensing of celebrities, characters, and athletes. When there is value, there comes along with it the responsibility for maintaining that value. Make it a win-win proposition for all involved. Remember, once again: context.

•••• 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, intellectual property, and licensing associations as a speaker and an officer. Anson’s newest book, entitled Right of Publicity: How Much Is Your Client Really Worth?, will be released later this year, and published by the American Bar Association.

Jeff Anderson is the director of valuation and analytics at CONSOR. Anderson performs and manages valuations of intangible assets and intellectual properties for litigation and transactional purposes, including matters regarding brand, trademark, licensing, and right of publicity issues.

Anderson is a member of a number of trademark and licensing associations.

Jemma Samala is an analyst with CONSOR, focusing on licensing, litigation, and research. Samala is a frequent writer on licensing issues and writes the CONSOR blogs.

The Licensing Book • 25

Hot Shots

Debra Joester President and CEO

Joanne Loria

Executive Vice President and COO

Fifteen years after The Joester Loria Group was founded, Debra Joester and Joanne Loria will be inducted into the LIMA Licensing Hall of Fame.

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

Licensing drives billions of dollars in retail sales worldwide. It is an important business tool for brand extensions and provides a great opportunity to leverage the appeal of hot properties. The kids’ space is increasingly dominated by a handful of studios. This year, superheroes merchandise is displacing other kids’ properties and driving sales in the juniors and young men’s departments. The hot licenses that burn bright for a couple of years and cycle out are interesting to watch. As Angry Birds faded, Duck Dynasty became the must-have property, and the market eagerly anticipates the next hot property.

Since last year’s Licensing Expo, has there been a specific JLG property that has experienced significant growth—and if so, was there a particular component of the licensing program that attributed to this?

In the past year, a number of our programs have experienced significant growth. The World of Eric Carle featuring the Very Hungry Caterpillar shows significant growth in the UK, Australia, Japan, and the U.S. DTRs with key retailers and promotional partnerships celebrating the 45th anniversary of the property are driving millions of impressions. Licensees see increased sales thanks to strategic retail partnerships in all of our key markets. JLG showcased celebrity chef Fabio Viviani for the first time at last year’s Licensing Expo and continues to expand his reach with new restaurants, partnerships with Bialetti and Picnic Time, and a food line launching next year.

What’s the biggest challenge the licensing industry will face in the year ahead?

While the competition for retail space remains fierce, licensing programs that extend successful, established brands with a proven track record at retail offer great opportunities for long-term growth. We are confident our existing clients and new clients, including Constellation Brands, Aimee Song, and Fabio Viviani offer the appeal both consumers and retailers seek.

26 • The Licensing Book

How do you keep a property (e.g., Kellogg’s or Pepsi) “fresh” for today’s consumers?

It really starts with the property itself. When first evaluating the licensing potential, there are key indicators that help us determine a brand’s long-term staying power. The most critical components are a rich brand heritage with robust creative assets and high consumer awareness and appeal. Brands like Kellogg’s and Pepsi that have multigenerational appeal, universal awareness, and a vast archive of classic advertising, art, and imagery are truly iconic pop culture brands that resonate with today’s consumers.

In the food and beverage realm, how important is it to expand your brands across multiple platforms?

In food-to-food licensing, each brand is different. Understanding brand extendibility is key. Consumer permission studies are valuable early indicators of where a brand can play. Starting out with select strategic extensions that have the most potential for success sets a solid foundation for further expansion. A brand’s core objectives and guardrails also play a vital role.

Food and beverage brands are also expanding across multiple platforms outside of consumables, especially with Kellogg’s, Entenmann’s, and Pepsi. Home and kitchen products such as bakeware, cookware, and tabletop are becoming more and more popular within the food and beverage segment.

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

There are many lessons we’ve learned and continue to learn all the time. Most important, though, is recognizing that we live in a fast-paced culture of change. You can’t rest on your laurels. We need to be strategic, but not formulaic. Staying current with emerging trends and technology trends that are coming out of the fringes—not only in terms of what the next hot trend in licensing will be, but also how technology and the digital world are impacting how we conduct the business of licensing as well—is vital to ongoing success.

••••

Summer 2014

State of the Industry

Ashley Maidy

Michael Connolly

Activision

DreamWorks Animation

Head of Global Licensing and Partnerships,

What is the most important thing a property owner can do to extend the life of a property?

The key to extending the life of an IP and staying consistently relevant is innovation. In today’s world, kids can access new content through so many various avenues, including television, film, video games, online, and more. Since kids are so quick to move onto the next big thing, it’s critical that we keep our finger on the pulse of changing trends, and keep them engaged by innovating and evolving the franchise.

How much risk tolerance are you seeing with retailers relating to properties originating on new media platforms (e.g. digital properties)?

In the case of Skylanders, our retail partners really embraced our property, quickly recognizing that video games are a multi-billion-dollar industry with huge staying power.

Buyers outside of the video game aisle have noticed the impact that Skylanders has had on our consumers and recognize that fans want to be associated not only with the Skylanders video game, but with anything related to the brand. As technology and entertainment continue to merge, retailers will likely be more and more supportive of properties that are not led by traditional forms of entertainment, such as TV or film.

How have bloggers and social media become an important part of promoting or expanding your brand?

Bloggers have been a critical aspect of expanding Skylanders’ brand awareness. Mom and dad bloggers have been especially integral for maximizing Skylanders reach; we find that their enthusiasm for the brand extends well beyond the game, and we try to amplify our news with them as much as possible. This enthusiasm is further conveyed through their social media channels, which is a major boost for us as their channel audiences grow.

28 • The Licensing Book

Head of Global Consumer Products,

How are you handling the issue of retail consolidation?

The strongest will survive, and consolidation continues to happen at retail with categories such as toys and publishing. From our perspective, there are three key steps to addressing this.

First, key account teams. It’s critical that we invest in the retailers that continue to represent the lion’s share of the licensing business, as well as the halo retailers. The correct seeding of properties has become a lost art with studios’ desire to maximize a property right out of the gate, but proper seeding techniques will allow you to sustain a property longer over time, creating a more suitable ultimate revenue stream.

The second step is differentiation. While some retailers still prefer to carry the same inventory as everyone else and try to beat them in price, retailer differentiation is still essential to keeping all parties happy.

The differentiation cannot be negligible or subtle, it must be meaningful and ownable enough to create traffic for all retailers.

The final step is to think like a retailer. Promotion space comes and goes monthly, but 365 space lasts all-year long. We all love when our product is front and center, but the reality is that a towel in the towel modular over the course of a year will drive much more revenue.

What new platforms do you consider when launching a new property or breathing new life into an existing brand?

This is a very exciting time for cross-platform activity at DreamWorks Animation. We have so many classic, heritage, and new properties that will see content across more platforms then ever before, with the goal of maximizing launch and life cycles. From Voltron to Trolls, Madagascar to B.O.O.: Bureau of Otherworldly Operations, our portfolio will lend itself to theatrical, television, publishing, and even online content.

Two of the most exciting platforms for us now are Netflix and online content, via our recent acquisition, AwesomenessTV. Both allow consumers to get the content they want, when they want, and in the amount they want it. The synergy opportunities for cross-platform content are growing exponentially, and serve as an amazing bridge between the major theatrical tentpoles.

Summer 2014

Greg Economos

Amy Taylor

Sony Pictures Entertainment

Universal Partnerships & Licensing

SVP, Global Consumer Products,

How do you work with your partners to increase the level of success your properties reach in the marketplace?

We want each of our relationships, whether with licensees, retailers, or agents, to be a win-win based on realistic expectations. We do that by sharing pertinent information early and often and through constant marketing and retail support.

What is the most important thing a property owner can do to extend the life of a property?

It’s all about refreshing content on a continual basis.

Whether it’s a theatrical, TV, gaming, or other entertainment IP, it’s essential to provide consumers with content that will engage them with the characters throughout the year. It also must become a cultural phenomenon in the targeted demographic.

What are you doing to celebrate the 30th anniversary of Ghostbusters? How are you reinvigorating the brand?

All of our divisions are working together in support of the 30th anniversary of one of our most beloved properties. There are art gallery events across the country, new product introductions, soon-to-be-announced promotional partners, special-edition releases from home entertainment, and discussions about re-releasing in theaters for a limited run. All of these anniversary activities are intended to engage existing fans and bring new fans to the property as well.

What is the biggest trend affecting your business today?

Shrinking shelf space at retail. Retailers are taking a more conservative position with respect to licensed entertainment properties, especially unproven films.

Summer 2014

EVP,

How has social media become an important part of promoting or expanding your brand?

Social media has become such a prevalent method of gathering and sharing information, and it’s become a vital part of our marketing and promotional efforts. Used correctly, social media can significantly increase awareness and introduce your product to hundreds of millions of people. A prime example of this is our own Fast & Furious franchise. Our theatrical marketing team leveraged talent to generate a fanbase that led to a Facebook page with more than 44.7 million likes, more than 743,000 Twitter followers, more than 275,000 Instagram followers, more than 320,000 YouTube subscribers, and more than 121 million views of our content. The combined social footprint of our talent and filmmakers currently weighs in at more than 300 million social fans worldwide. We also took advantage of the digital space with partner Kabam! Games on our free-to-play mobile game Fast & Furious 6: The Game, which became the top-grossing mobile racing game on iOS, the No. 1 free app in 41 countries for iPhone and 84 countries for iPad, and one of the most profitable digital games based on a film property. Overall, the social media landscape that surrounds the franchise is remarkable, and it is an invaluable resource when we release new licensed products or announce new promotional partners.

How is the prevalence of digital technology affecting the licensing industry?

Digital continues to be a growth category, one that we have focused on and have also made strategic investments in over the last several years. For example, rather than license Despicable Me 2 to numerous digital partners, we made a strategic decision to partner with one leading publisher to develop a high-quality “freemium” app, Despicable Me: Minion Rush, allowing the game to become both a marketing vehicle and a revenue-generating product. That game has seen more than 235 million downloads, surpassing all expectations for both downloads and for revenue, and also won the Nickelodeon Kids’ Choice Award for Favorite App. And now, with continued new content releases, the app continues to power the franchise forward, keeping the property fresh between films. We’ve seen digital become a cornerstone category to any successful licensing program.

The Licensing Book • 29

State of the Industry

Maura Regan

SVP and General Manager, Global Consumer Products,

Dell Furano CEO,

Epic Rights

Sesame Workshop

How is the prevalence of digital technology reinvigorating classic brands?

By definition, classic brands have long, rich histories, and good storytelling is at the core of such longevity.

Today’s consumers want to understand the story behind their favorite brands, so this gives us a great opportunity to engage with them in fun, fresh new ways.

What is the most important thing a property owner can do to extend the life of a property?

Licensors should never become complacent. You need to constantly experiment and push limits while staying true to the brand’s core. It’s a fine balance.

What is the biggest trend affecting your business today?

We have retail consolidation combined with a protracted, sluggish economy. As such, we have to look for different ways to engage with consumers and extend the brand with unique offerings. That’s one reason why we’ve partnered with Produce Marketing Association (PMA)— to promote fresh fruit and vegetable consumption to kids.

The agreement allows PMA’s community of growers, suppliers, and retailers to take advantage of the Sesame Street brand’s strength and influence without a licensing fee— using characters such as Big Bird, Elmo, and Abby Cadabby to help deliver messages about fresh fruits and vegetables and encourage families to make healthier choices and reach families in different places.

How are you handling the issue of retail consolidation?

The benefit of Sesame Street is that we can offer retail exclusives and continue to sell in all channels of trade. We work hard to ensure that Sesame Street is top of mind with retailers.

30 • The Licensing Book

How is the prevalence of digital technology reinvigorating classic brands?

Digital technology has become one of the best vehicles to manage and market a brand, and we consider all aspects of it when developing our brand strategies, from creating a social media road map to building a dedicated web community. An established digital presence for our brands provides not only consumers, but also our licensing partners and retailers worldwide, with destinations to learn all they need to about—and engage with—a brand. This is one of the most efficient tools in today’s cluttered and competitive environment to deliver brand communication.

On the consumer front, we are in a position to reach millions of fans instantly through the artists’ social media platforms. Take one of the brands we represent, KISS, as an example: KISS has more than 12.2 million followers on Facebook located all around the world with a broad demographic range of 16 to 60 years old. It gives us an ideal platform to reach those fans simultaneously and share on a continual basis all of the activity associated with the brand from tours to band activities and licensed product news to retail promotions. Not only are the artists and fans benefiting from this exposure, but we are also providing our licensing and retail partners with a valuable service. We obviously need to be cognizant of managing the right balance between fan engagement and over-saturation of products sales, and this consideration is always at the forefront of our brand marketing strategies. By utilizing digital platforms strategically as a key component of our strategy, we can keep a classic brand, such as KISS with more than 40 years of history, fresh and current, appealing to existing and new fans alike.

What was your biggest “a-hah!” moment this year?

Shortly after presenting to our perspective clients the services that Epic Rights provides, our philosophy and strategies were embraced so quickly that we were able to come out of the gate signing with KISS, John Lennon, Woodstock, Aerosmith, and Gary Baseman. I had been working with most of these exceptional, iconic brands for so many years. Being able to prove that Epic Rights had earned their trust and respect so quickly was a huge pivotal moment that really confirmed our standing in the industry.

Summer 2014

State of the Industry

Roz Nowicki

Liza Abrams

Fox Consumer Products

Sakar

EVP, Global Sales & Retail,

What new platforms do you consider when launching a new property or breathing new life into an existing brand?

We are big believers in collaborations with fashion companies for giving a fresh look to our long-term brands. Just this past year, we debuted new collections with Joyrich and Bathing Ape for The Simpsons. Additionally, we introduced apparel at fast fashion retailers such as Uniqlo and Zara, again proving The Simpsons brand continues to be trendsetting in the global fashion community after 25 years. We have more collaborations planned for later this year and into 2015.

Where are you seeing the biggest opportunities for growth?

We have had great success in seeking out both relevant and unique categories for our brands, as well as ensuring we develop long-term initiatives for our properties. In terms of categories, we have seen great success with cigars for Sons of Anarchy,and slot machines for Avatar, and we are thrilled with the recent introduction of Duff Beer in Australia. We also see the importance of building franchises from our proven hit properties including Rio, Ice Age, and Alvin and the Chipmunks.

In what new ways are you working with retailers for branded promotions?

We approach retailers holistically with turnkey solutions and not just trying to “get a palette,” but addressing their overall needs to reach their target consumer with programs that encompass promotions, home entertainment, consumer products, and digital strategy.

How have bloggers and social media become an important part of promoting or expanding your brand?

There are a number of bloggers who are fans of our brands and we are embracing them and reaching out to them to keep an ongoing dialogue.

32 • The Licensing Book

Vice President, Global Licensing and Marketing,

What are the biggest challenges currently facing the licensing industry?

We are continually faced with competition at the brand level and space at retail. This year there are a lot of really great boys’ and girls’ brands—more than most years—competing for attention. At the same time, we are all faced with new buyers, retail consolidation, changing/shrinking space, and consumers that have come to expect constant newness. I think this will be a perennial issue and we all have to be as flexible as possible to adapt. A crystal ball would help!

Share your favorite brand execution and the inspiration that got you there.

We have so many fantastic products that this changes for me monthly, but right now, I would have to say I am loving our Nerf and Nerf Rebelle Action Cams. They come with mounts to attach to the Blasters and I think they are super cool and very organic to the brand. These will be hitting shelves this summer and I can’t wait to see some of the videos that get sent in to us from kids capturing pure fun.

Where are you seeing the biggest opportunities for growth?

Being in the technology/electronics arena, we are fortunate that there tends to be continual growth and new developments on a fairly consistent basis. Opportunities continue in children’s tablets—a market that is challenging but exciting, and driven by new content and technology innovation. Under our Vivitar brand, Sakar launched phase two of our XO and Camelio children’s tablets at CES in January and we have had great response across the board. Bringing fresh technology into toys and lifestyle product across a multitude of brands continues to excite retailers and consumers. As much as we try not to admit it, the youth of today want the latest gadgets and there is a strong expectation for all types of product to incorporate these technologies.

What is the biggest trend affecting your business today?

We are unique as a company in that we play in a number of different categories. In youth electronics, the biggest trend continues to be technology innovation, apps, ease of use, and multi-use of items.

Summer 2014

Pam Kaufman

Chief Marketing Officer and President, Consumer Products,

Michael Stone CEO and President,

Beanstalk

Nickelodeon

How much risk tolerance are you seeing with retailers relating to properties originating on new media platforms (e.g. digital properties)?

As long as there is a scalable fan base built into a particular experience, retail is more open than ever to try to convert those fans into consumers. Content is coming from everywhere, but relevant content is still a precious gem that will require exploration, continuous support, marketing, and reinvention, which allow it to transcend over time. Quick fads will always exist and can come from anywhere; sustainability is the challenge. It’s incredibly important to take a 360 approach to supporting an IP. In order to have continued growth and success, there needs to be strong omnichannel marketing programs—that’s what will drive business.

How do you work with your partners to increase the level of success your properties reach in the marketplace?

We’re a company that builds an idea, launches it, and keeps it top of mind with the consumer every day. When we create a show and market around it, we’re in a daily conversation about that content. That goes far beyond a sales transaction to an in-depth continuous dialogue and sharing of ideas from product ideation to market and consumer segmentation, to promotional and marketing engagement, to consumer research, to retail planning, globally.

In 2010 Nickelodeon acquired Teenage Mutant Ninja Turtles.

It was a proven property with a devout fan base and a successful track record. We saw a diamond in the rough and we knew we could not only build upon its impressive legacy, but also create something new that would appeal to a new generation of kids while maintaining the integrity of the property. We engaged with super fans and influencers to not only get their buy-in and support, but to also use their feedback to help inform creative decisions around the series as well. The result is more than 50 million people tune in to the series worldwide, with fantastic placement at retail and extensive digital success, from the launch of our mobile app to our online games.

Summer 2014

Where are you seeing the biggest opportunities for growth?

Look for continuing growth in categories where there remains white space (there’s always white space, by the way), such as food, beverage, health and beauty, and home improvement, among others. Also, new media properties are becoming consumer products. Keep an eye on bloggers (e.g., Bag Snob) and YouTube sensations (e.g., Michelle Phan). And there will always be the non-traditional entries and partnerships.

Brands are continuing to forge new and exciting alliances to stand out in the crowd. One of the best examples is what The Coca-Cola Co. has done recently. They have partnered with popular brands, such as nail polish manufacturer OPI, wineglass maker Reidel, and coffee company Keurig Green Mountain (Coke owns 16 percent), to create co-branded products that allow both loyal consumers and tastemakers to experience the beverage in new ways.

Other examples of recent non-traditional partnerships include Rovio collaborating with Mrs. Fields cookies to offer Angry Birds cookie boxes and frosted cookie products; luxury automaker Porsche partnering with lead singer Chester Bennington of the band Linkin Park to create a capsule collection of men’s apparel products; and Dylan’s Candy Bar teaming up with The Wizard of Oz last month to launch a 75th anniversary limited-edition candy collection.

Procter & Gamble took innovative thinking to a whole new level with the launch of its Mr. Clean Car Washes in 2007, followed by its Tide Dry Cleaners. Both services are in line with— and close to—the brand’s core values, but extend them into a completely new space. Now loyal fans don’t just see these brands on the shelf of their favorite household stores—they have the opportunity to engage with these brands on the next level.

Whether brands are trying to leverage their heritage to further attract core consumers, engage a new demographic, or just become top of mind, these innovative partnerships are a great tool.

The Licensing Book • 33

State of the Industry

Liz Kalodner

Jessi Dunne

CBS Consumer Products

Mattel

EVP and General Manager,

What are the biggest challenges currently facing the licensing industry?

We often think of a challenge as feast or famine; for licensing, it’s currently both. The abundance of entertainment properties from all channels makes it harder to break through and amass an audience, and an excess of licensed product crowds out brands on retail shelves—that’s where the famine comes in. A dearth of shelf space in a reduced number of stores makes placement difficult and also causes retailers to scramble for margin, depressing royalty rates and straining the system. Fortunately, there’s a silver lining in e-commerce where we see tremendous growth and an ability to showcase a broad range of products directly to the consumer.

General Manager and SVP, Consumer Products,

What is the biggest trend affecting your business today?

New technology continues to impact brand licensing and will continue with the strength of mobile properties and as products such as 3-D printing and oculus become more mainstream and accessible. Also, we are seeing increased competition from private label or exclusive designer partnerships with retailers that create short-term marketing events. Finally, as consumers continue to increase their commerce activity/shopping, we’ll need to adjust our go-tomarket approach.

How has social media become an important part of promoting or expanding your brands?

Social media fosters three valuable pathways of communication: the fans talking to one another, which creates excitement and expands the audience base; us talking directly to the fans without any intermediary; and, potentially most unusual, the fans talking to us, which gives us valuable feedback and engagement.

How are you handling the issue of retail consolidation?

Our new strategy, one that is really brought to life through Barbie, is all about creating unique on-trend and on-brand creative that will give each retailer a way to bring the brand to life in a way that best targets its specific consumer. Developing various creative executions gives each retailer a point of difference and also brings to life the various moments and memories our wide consumer base has with this evergreen 50-plus-year-old brand.

What is the most important thing a property owner can do to extend the life of a property?

Newness—new design, new characters, new content—has long been a driver, but we are very focused today on the incorporation of that newness into licensing itself via product categories such as publishing and live events. They serve to offer new content while also producing royalties in what we’ve termed “revenue-generating marketing.”

Where are you seeing the biggest opportunities for growth?

We see great growth opportunity by penetrating some markets more deeply, such as Russia, India, and China, as well as new categories such as food and beverage, healthy snacks, and menswear.

What was your biggest “a-hah!” moment this year?

I realized a massive shift in power to the individual and away from the licensor and retailer. Today, the individual can customize his 2-D T-shirt, create his own 3-D printed toy, and raise funds via Kickstarter for any project imaginable. We, as an industry, need to convert from a traditional push strategy to a pull one, where the fans guide our approach.

34 • The Licensing Book

How have bloggers and social media become an important part of promoting or expanding your brands?

Social media and blogger relations have become an important part of our marketing mix. We know 90 percent of millennial moms are online and we continue to develop innovative digital programs that allow consumers to engage with our brands online.

Summer 2014

State of the Industry

Josh Silverman

Willie Wilkov

Disney Consumer Products

Tomy International

Head of Licensing,

How is the prevalence of digital technology affecting the licensing industry?

Digital technology is more prevalent than ever. We’re leveraging to touch the consumer and to tie into the ways that consumers are digesting content. Examples include using digital technology to enhance traditionally great product in an authentic way that advances the storytelling of our characters, such as the Disney Princes Ultimate Dream Castle plus app, and bundling digital technology with physical product to expand the experience and offer deeper value, such as the Disney Princess Palace Pets app.

What new platforms do you consider when launching a new property or breathing new life into an existing brand?

All of them: apps, short form media/content (e.g. Maker Studios), websites, live entertainment, television. We want to provide consumers simple access to our content and stories beyond the first movie or season of a TV series and reach them at various touch points.

What are the biggest challenges currently facing the licensing industry?

The challenge for us at DCP is juggling all of our amazing IP, franchises, and brands—that each cater to various target audiences across ages and stages—and give them all the attention that they deserve.

What was your biggest “a-hah!” moment this year?

Our “a-hah!” moment this past year has to be Frozen. We had great aspirations, great product developed, great partners aligned, the right go-to-market strategy, and so on. With all that, no one could have anticipated the worldwide phenomenon and birth of a new franchise that is going to go on for many years, touching people around the globe.

36 • The Licensing Book

Chief Marketing Officer,

What is the biggest trend affecting your business today?

The fact that millennials are now having children—and redefining parenting as we know it—has a major effect on our business. Today’s young parents are very loyal to brands that mirror their values and interests, which in turn affects the licenses that Tomy pursues and supports. We’ve seen renewed interest in our Lamaze line of infant toys because of the non-profit brand’s support for natural, safe, and healthy birth education and advocacy.

Today’s young parents bring with them a unique set of challenges: They’re detached from institutions, un/underemployed, burdened by debt, and overall less trusting of brands. It is especially important for us to be authentic, sensitive, and mindful of these challenges when we interact with them.

How is the prevalence of digital technology affecting the licensing industry?

It has completely changed the way consumers interact with brands. When today’s consumers have questions, they turn to social media and they expect an immediate reply. They often don’t know the difference between the licensor and the licensee and frankly they don’t care. Whether they ask us about the Chuggington show or Ludorum about our particular play sets, we both need to be able to solve their problem or answer their question without delay. Real-time consumer service requires teamwork, trust, and clearly defined guidelines.

Digital technology is an increasingly important topic of conversation with our retail partners. It is imperative that we demonstrate—and get credit for—the value of digital and justify its increased role in our marketing mix. As parents and kids gravitate away from the TV and interact with content on other devices, we’re effectively advertising many of our licensed brands (John Deere, Disney, and Pokémon) with video and other interactive creative content on YouTube, mobile devices, social media, and within apps. We must be agile to keep pace with our end users, whose consumption

Summer 2014

Jim Kipling

Howard Beige

Dinsmore & Shohl LLP

Rubie’s Costume Co.

Of Counsel,

What part of a license agreement is most important?

If you ask this question of inexperienced people in our industry, you might get as many answers as the number of people you ask.

However, ask an industry professional and the surprising answer should be “none.” The most important part of a license agreement is not part of the agreement at all. Instead, it’s the licensee’s business plan. The negotiator must know what elements of the property will be used, how they will be used, and their maximum cost to enable the licensee’s profitable use. It must also be cognizant of the many other pitfalls that often appear in licensor forms.

If the property is a motion picture, will the licensee’s products or the related promotional material use actor likenesses? If so, will they be stills from the movie, posed photos, or illustrations created by the licensee? Will the products use voices from the soundtrack or separately recorded voices of the movie’s actors, or sound-alikes? Will the products reproduce clips from the picture itself?

If any real-life vehicles or other props that appear in the movie are to be portrayed as products, the negotiator must also be cautious. The wise negotiator will seek this level of detail because the answers may trigger payments beyond the royalty rates, or worse, certain critical elements of the property may be unavailable at any price.

In many current licensor forms, the provisions granting rights are riddled with loopholes to protect licensors. If the business plan indicates that obtaining certain rights will be essential, the negotiator must do everything possible to eliminate any question concerning the availability of those particular rights. For example, if one particular actor was essential, it may be possible to confirm that person’s rights while leaving the non-essential actors uncertain. In the event that certainty is not achievable, the client must be notified as clearly as possible and be given the choice to walk away from the deal or to knowingly accept the uncertainty.

The negotiator must be aware of the nuances of the industry, acquire elements considered by the client to be make-or-break at affordable prices, and must avoid other costly pitfalls. Only in this way will the negotiator have met its obligation to the client.

Summer 2014

EVP,

How much risk tolerance are you seeing with retailers relating to properties originating on new media platforms (e.g. digital properties)?

Actually, I see an increasing amount of risk tolerance. Properties such as Angry Birds, Monster High, Ever After High, and Skylanders, to name a few, have had tremendous success. I think it’s fair to say that initially retailers resisted properties that originated from non-conventional media platforms; however, the undeniable success many of these properties have experienced has propelled retailers into analyzing properties originating from new media platforms, on the same basis as they evaluate traditional properties.

How have bloggers and social media become an important part of promoting or expanding your licensed products?

Social media on the whole and its counterparts—fan-created pages and videos, their followers, blogs, and the like— have been a tremendous help in building the popularity of our products. This audience, which encompasses so many demographics, is generally very passionate about the licensed character and are the first to purchase, model, perform in, and critique our latest products, preaching to the masses on behalf of Rubie’s and our properties.

The value and trustworthiness of these heartfelt reviews, comments, critiques, and opinions are far better than any promotion or advertising that Rubie’s could ever do for our own products.

They are Rubie’s best customers; they spread the word honestly and have the biggest impact on anyone considering purchasing a Halloween costume or other Rubie’s products by guiding the consumer and helping them decide what they are going to dress up as or what items they may need to complete a look. From Facebook and Twitter to Instagram and Pinterest, all have had very positive effects.

The Licensing Book • 37

Inside Retail

LINK, DON’T LEAP: RETAIL’S NEW MANTRA

by Carol Spieckerman, president, newmarketbuilders

S

mart beacons, robotics, virtual reality. These days, it can seem as though retailers and e-tailers are leaping at shiny objects left and right and daring their legacy business models to catch up. Out with the old and in with the radical new. In reality, a growing number of retailers are moving in the opposite direction, revisiting tried-andtrue businesses, assets, and capabilities and linking them to future opportunities.

Here are four ways that retailers are forging connections between the past and the future:

1. Finding Treasure in Transitions

When Wal-Mart recently announced its latest tradein program, in which gamers receive a Wal-Mart gift card in exchange for used games and gear, critics were quick to claim that the company was putting a stake in the ground of a dying business: physical games.

However, the program actually benefits the company on a number of levels. It allows Wal-Mart to build relationships with a desirable demographic—young gamers— and get them spending in the company’s stores or on walmart.com, which some will, no doubt, do for the first time. When shoppers redeem their gift cards, they will typically spend more than the value of the cards, and certainly

38 • The Licensing Book

not less. This drives incremental sales for Wal-Mart throughout what could be a years-long transition period in the gaming market.

2. Recasting the Core

Print and traditional publishing has been on the death watch list for a while, but it still hasn’t gone away—in fact, it is enjoying a renaissance with digital-savvy marketers. In February, luxury online retailer Net-a-Porter released the first issue of its glossy new print mag Porter after wooing former editor of Harper’s Bazaar UK, Lucy Yeomans, to serve as its editor-in-chief. Magazine launches by retailers aren’t new, but Porter’s real power lies in its full integration with a shopable digital edition of the publication, which links to Net-a-Porter’s endless aisles and those of its brand partners. On the heels of the launch, the company’s founder, Natalie Massenet, likened Porter to an Apple store, calling it “a physical temple to our brand.” She pointed out that Net-aPorter isn’t just a retail company, but a media company, and as such, it can’t ignore “the most important existing media, which is print.”

3. Building Gadget Gateways

The reigning king of digital is having a heyday with hardware, as Amazon’s ongoing iterations of its Kindle products have transformed publishing as we once knew it. Now a host of hardware launches are following in rapid succession, including the company’s recently launched streaming media set-top box, Amazon Fire TV, its Dash remote grocery order-

Summer 2014

“Building bridges is poised to be the next big thing; however, many of them will be built from something that others underestimate, or in some cases, even run away from in droves.”

In this case, the location is a global brand beacon that drives awareness and boosts online sales, even in markets where Macy’s doesn’t have stores.

Building bridges is poised to be the next big thing; however, many of them will be built out of something that others underestimate, or in some cases, even run away from in droves. Brand marketers who jump off the bandwagon, realign their assets, and help retailers do the same will stand out as the pace of change in this industry quickens.

••••

Amazon Fire TV streaming media player

ing device, and the promised launch of its first smartphone in September. As with its Kindle devices, all three gadgets will serve as portals to Amazon’s ecosystem of products and services, rendering the profitability of each unit beside the point. In fact, the Dash is free. Anyone who owns an Amazon gadget is an Amazon customer who is a mere click away from buying something.

Carol Spieckerman is an internationally recognized expert and thought leader on retail and brand positioning. Her specialty is helping companies future-proof their retail strategies and position for high-volume success with retail’s new decision-makers and influencers. To learn more about Spieckerman’s one-day retail boot camps, visit retail-ize.com. You can find Spieckerman’s retail insights on her website: newmarketbuilders.com and on Twitter @retailxpert.

4. Scaling without Flailing

Japanese retailer Uniqlo is putting the pedal to the metal on its U.S. expansion, but instead of peppering the landscape with mini-Uniqlos, it’s simultaneously sticking with its flagship model in key urban centers and beefing up its online presence. Every Uniqlo store serves as a brand billboard, and from there, digital drives the scale. Based on that logic, Macy’s can similarly justify its multi-million-dollar investment in renovating its Herald Square flagship in Manhattan.

Summer 2014

The Licensing Book • 39

Property Profile

S N O S P M I S E H T Turns 25

Doh!

The Simpsons is a brand that has been transformative over the years. The iconography of the show and the relevancy of the characters is on a level that most brands don’t see after 25 years. In celebration of The Simpsons 25th anniversary, The Licensing Book spoke with Peter Leeb, vice president, TV global brand management & strategy, 20th Century Fox Consumer Products, about the brand’s plans for this year and moving forward.

What is it about The Simpsons brand that makes it an evergreen property?

One of the things that has created such an audience, which is really expanding from people that have grown up with the show from the early ’90s to younger people and teenagers over the last 10 years, has been the relevancy of the writing, more than anything. If you look at the show now versus 20 years ago, nothing has changed much. The jokes and the types of partnerships are as relevant as ever. You can see that a lot in the content from the viral videos we do, to the opening couch gags related to Breaking Bad when everyone was talking about it from a water-cooler standpoint, to the opening credits. It really has spanned generations and taps into that culture through various decades.

How do you keep the property fresh after 25 years?

It’s really the types of partners that we choose for the fans. Over the years, you just look at the Facebook page that we’ve grown to more than 72 million fans globally, to the fan art that’s being created and

40 • The Licensing Book

generated worldwide. Some people just sent some stuff in from Argentina and the next thing we know, some new fan in Japan is creating their own stuff. It’s really about creating unique products and experiences that are relevant for our audience. Our recent Lego episode tapped into a very different audience while keeping our audience of 25 years still engaged and interested in the brand. That’s something that we haven’t done before—taking a product partnership and expanding onto it. So not only did you have our very collectible construction that came out in February, but you then make something a little more manageable for the everyday fan and Lego consumer with our minifigures. That’s a great example of keeping the brand fresh.

Another great example is our theme park world at Universal Studios. We needed to do something fresh for our fans over the years, so we created an entire Simpsons world starting in Orlando [and then] to Universal Studios Hollywood, where you can experience all the great brands that the show has created, from Lard Lad to Duff’s Brewery to going into Moe’s Tavern and having a drink. There are so many things that touch the everyday lives of the brand’s fans.

What is your biggest licensing push as you move into the 25th anniversary?

Every category, really. Teen Vogue recently wrote an article about whether Bart is coming back to be a fashion icon. Everything we’re doing is very unique this year, even going into 2015. There are partners in

Summer 2014

high fashion, as well as very collectible partners. We have come out with a line of the 25 greatest guest characters—we’ve never offered the Simpson-ized versions of our celebrities that appeared on the show as actual products. Them coming together and wanting to do this shows the magnitude of this brand right now.

On the other side, all of the fashion brands from Joy Rich to A Bathing Ape to Eleven Paris to Drop Dead is a true testament to this brand and this kind of ’90s retro look that’s coming back in the fashion world right now. I’ve always looked at The Simpsons as pillars, verticals. We have this fashion vertical with a lot of those companies, plus Converse, to the infusion we have in the sports world over the last six months with partnerships with the largest global soccer teams, such as FC Barcelona and Chelsea. We took their roster and completely Simpson-ized the whole thing. With Barcelona having more than 1 million fans, that’s another one of those very different partnerships between two iconic brands.

What do you look for in partners for the products released in conjunction with the anniversary?

We look for partners that are more cutting edge and unique. That might go hand-in-hand, but we had so many products and so many partners over the years that we don’t want to do the same thing anymore. We don’t want the same products out there, the same looks, the same types of interpretations. [We want] partners that are very unique, and a little more culturally relevant today. [We are] working on a very fun project right now with Johnny Cupcakes. They have a unique sense of their type of product and a unique sense of how The Simpsons can fit into it right now. With everything going on in this day and age, you have to create very interesting consumer brands, rather than the traditional licensing models.

What can we expect from The Simpsons brand moving forward?

You’re going to see a lot of unconventional partnerships coming up in the next year. The Simpsons is going to be around for many years to come world-

Summer 2014

wide. Some countries are just getting started. There are a couple that are literally getting to see The Simpsons for the first time, where you’re going to be building a brand from scratch. Other markets are probably five years behind the U.S. It’s always, for us, finding a unique way to bring a younger demographic into the world of Springfield. One way is our willingness to open up the digital streaming floodgates through FXX, beginning at the end of this year. It’ll be the first chance for audiences to be able to watch The Simpsons digitally, from show 1 to show 525 right now.

With today’s media consumption, with all the different options available to somebody looking for entertainment, this first-time-ever ability to go on to the FX app and watch whichever show you ever wanted to that appeals to you at that given moment is going to open it up for more of a millennial and younger demographic that might not have watched the show in the ’90s and the early 2000s.

••••

Neca

National Entertainment Collectibles Association (NECA) celebrates The Simpsons with the exclusive 25 of the Greatest Guest Stars program. Twentieth Century Fox Consumer Products and NECA unveiled the limited-edition guest star merchandise program in honor of 25 seasons of The Simpsons. The boutique collection includes more than a dozen assorted product categories, featuring each star’s animated likeness as depicted on The Simpsons. Products include collectible miniatures and figures, apparel, games, puzzles, and more. Current celebrity figures and merchandise on the market feature The Who, Britney Spears, Mark Hamill, Lucy Lawless, Tony Hawk, Tom Hanks, Kid Rock, James Brown, Yao Ming, and Hugh Hefner.

Hugh Hefner

James Brown

Yao Ming

Tom Hanks

Kid Rock

The Licensing Book • 41

Property Profile

Lego

The Simpsons House has been turned into Lego bricks.

Kids can build The Simpsons House with a detachable roof, a modular design, a car with a dent, the famous family couch, and six minifigures—Homer, Marge, Bart, Lisa, Maggie, and Ned Flanders. This set features all of the classic motifs fans have come to know over the show’s 25-year run.

MAC Cosmetics

To celebrate the 25th anniversary of The Simpsons, MAC Cosmetics plans to launch a limited-edition color collection dedicated to everyone’s favorite blue-haired, beehived beauty, Marge Simpson. The collection will be available this fall.

The Simpsons Hits the Runway with New Fashion Collaborations

The Simpsons take on the runway with new fashion collaborations as Twentieth Century Fox Consumer Products (FCP) and major fashion brands release unique new collections this year. Global trendsetting brands Drop Dead, Uniqlo, and Eleven Paris are the newest to partner with FCP to release 2014 collections with The Simpsons, joining Converse, Joyrich, A Bathing Ape, and Threadless.

Fashion label Drop Dead Clothing is partnering with The Simpsons this spring to release a boutique apparel collection featuring Itchy & Scratchy. Japanese designer/retailer Uniqlo and ultra-contemporary French brand Eleven Paris are also releasing firsttime collaborations beginning in the spring.

A Bathing Ape provides a wide variety of apparel and accessories for men, women, and children, including trendy varsity jackets, snapbacks, T-shirts, hoodies, sweatpants, beer glasses, and baby bibs that launched in the spring.

Joyrich launched the second The Simpsons and Joyrich apparel collaboration featuring street-inspired fits, such as varsity jackets, oversized T-shirts, sweatpants, and accessories ranging from snapbacks to fanny packs, all featuring Bart Simpson prints.

Threadless introduced an exclusive T-shirt collection designed by artists and fans worldwide celebrating The Simpsons. There are currently 29 designs available. In addition, Eleven Paris and Uniqlo both launched their first collabvarsity jacket, orations this spring. from A Bathing Ape Additional partners include H&M, expanding its The Simpsons line for adults and kids, Topshop and Topman launching its collection this summer, and Zara and Zara Kids.

FCP has also partnered with Johnny Cupcakes, a faux bakery specializing in graphic T-shirts, to launch a new apparel and accessories line for The Simpsons. The focal point of this product line is three specially packaged, oversized “cupcake mix” boxes, based on either Homer Simpson, Bart Simpson, or Krusty The Clown. Each box contains three collectible products designed around the theme of the character.

Additional clothing items featuring Simpsons characters will also be represented with a Johnny Cupcakes twist and will be available in all Johnny Cupcakes retail shops and online the summer. All of Johnny Cupcakes’ exclusive designs are “baked” in limited batches, making the products collectible.

42 • The Licensing Book

Summer 2014

Toy Licenses

Toy Licensing

How Important Are They?

T

by Lutz Muller

he licensed toy segment is large and continuously growing. According to The NPD Group, the overall toy market in the U.S. declined by 1 percent last year, while toys carrying a license grew by 3 percent and now represent about 31 percent of the U.S. toy market in value.

Figure 1 License Frozen Frozen Frozen Frozen Frozen Rapunzel Super Heroes MineCraft Chima Transformers Angry Birds

Positions 8 2 1 1 1 1 1 3 1 2 1

Licensor Disney Disney Disney Disney Disney Disney Disney Mojang Cartoon Network TakaraTomy Rovio

Product Doll Doll Coloring Book Balloon Balloon Lego Set Lego Set Lego Set Lego Set Action Figure Balloon

Manufacturer Mattel Just Play Easter Essentials Anagram Shindigz Lego Lego Lego Lego Hasbro Airswimmers

The reason why the licensed segment grows at the expense of all other products is that licenses provide a number of major benefits. A good license is a key that Figure 2

Trends in Age Group Share of Moviegoers 25

Percent

20 2009 2010 2011 2012 2013

15 10 5 0

2 to 11

12 to 27

44 • The Licensing Book

18 to 24

25 to 39

40 to 49

50 to 59

60+

opens important doors. It gets you into the major retailers and onto their shelves, which you might not otherwise accomplish. It exploits consumer awareness of a movie or TV character, and hence, enhances the appeal of a product. It is also about 50 percent more likely to lead to an impulse purchase in the store.

While top licenses are expensive, they tend to produce sales, market shares, and profits for the licensee.

Second-rate licenses tend to be more costly in the long run because they typically do not provide the same benefits; they do not necessarily get you into the right retailers, and they do not give you the same built-in sales and market shares.

The benefit of a first-class license is best demonstrated by looking at Amazon’s best-selling toys.

In late April, 22 out of the top 100 toys were licensebased, and of these 22, 13 were for Frozen, the fantastically successful Disney adaptation of the Snow Queen fairytale, as shown in Figure 1. What is not shown in this table is Jakks Pacific’s Frozen ice gown, which has been sold out since January.

This reinforces the view held by national buyers that the main drivers for licensed toys are movies screened in cinemas. One major reason for this is that audience numbers for kids ages 2 to 11 have held reasonably steady between 2009 and 2013, as seen in Figure 2.

The same cannot be said of cable. Cynopsis Media reports audience numbers of the 2 to 11 age group, and these are its statistics for comparable weeks in midFebruary between 2009 and 2014 for the top 10 basic cable ad-supported networks, as seen in Figure 3.

There is also considerable evidence suggesting that

Summer 2014

Toy Licensing Figure 3

Top 10 Cable Channels Kids ages 2 to 11, in thousands

5,000 4,000 3,000 2,000 1,000 0 2/11/09

2/18/10

2/16/11

2/15/12

2/13/13

2/14/14

a TV series will not produce the same toy sales volume compared to a single blockbuster movie—e.g.

Transformers: Dark of the Moon in 2011 produced nearly three times more action figure sales than last year’s TV production of Transfomers: Beast Hunters, according to Klosters Retailer Panel data.

Another way to look at this is by reviewing web searches, which suggest consumer interest levels. Figure 4 compares three licensed brands during the 12 months preceding April 12, 2014: The Hobbit [The Desolation of Smaug], released on DVD on April 8; Teenage Mutant Ninja Turtles, shown on Nickelodeon; and Frozen on the big screen.

It is therefore no surprise that toy licenses based on movies shown on the big screen are increasing in number, whereas those from TV movies and series are declining.

While there were five TV offerings last year (Transformers Prime Beast Hunter, The Incredible Hulk, The Avengers Assemble, Max Steel, and Monster High—Scaris: City of Frights), there is now only one scheduled this year— Slugterra: Ghoul from Beyond. In contrast, there were 13 toy-related movies shown in cinemas last year, and 17 are scheduled this year, as seen in Figure 5 (page 130).

Note that the number after the title indicates that the Figure 4

Interest Over Time

The Hobbit Frozen Teenage Mutant Ninja Turtles

Average

July 2013

46 • The Licensing Book

October 2013

January 2014

movie is part of a series, counted from the year 2000. For instance, the “2” after Smurfs tells you that it is the second Smurfs movie since 2000, whereas the “1” after Captain America tells you that it is the first.

This is relevant, since there are indications that the box office result of a movie tends to decline after the second entry in a series, while there is very clear evidence that this is also the case for the related toy sales. While a kid may want to see the third Hobbit movie, this does not mean that he or she will also want to get the action figures to go with it, because those from earlier movies are likely still sitting in their toy box. There is also considerable evidence that too many movies in the same time slot tend to cannibalize each other. Both factors are of concern to buyers this year, and their ordering patterns reflect this.

The Downside to Licensed Toys

Apart from the possibility that licenses could, over time, become less effective as toy sales drivers, there are other drawbacks as well. One of them is cost. A top license typically goes for about 10 to 15 percent calculated on the manufacturer’s sales. There are also sales minimums to be attained, which, if not met, can be prohibitively expensive.

Also, a license is given over a fixed period only and may not be renewed at the end of it, so a manufacturer may find itself in a position where it has built a large part of its business around a license that then gets taken away. In short, the licensor is in the driver’s seat and the licensees pay for it. There are two exceptions to this rule: Lego, in the construction toy category, and Hasbro, in board games.

Both have such a dominant position in their markets that they are in the driver’s seat and it is the licensors that come calling. As a result, these companies can pick and choose, and the terms under which they accept a license are much less onerous than what would otherwise be the case.

With these two exceptions, toy licenses based either on TV or movie series may have whiskers on them, and there is little doubt that some toy companies are actively working on lessening their dependence on them. Mattel is a case in point. The toy manufacturer bought HIT Entertainment, a move that not only brought Thomas the Tank Engine, previously licensed by Mattel, into its portfolio, but also added a slew of characters, such as Bob the Builder, Mike the Knight, and Sam the Fireman, continued on page 130

Summer 2014

FOR MORE INFO, CONTACT US: Nancy Stimson, nstimson@ea.com, +1 650 628 7846 ©2014 Electronic Arts Inc.

TIA Perspectives

Catching the

Global Licensing T

Wave

by Kristin Morency Goldman, communications specialist, Toy Industry Association

ransmedia storytelling, cross-platform media franchises, and global connectivity have fueled a worldwide consumer desire for toys, games, and other products based on major motion pictures, TV shows, digital apps, and video games. This demand is driving expansion of the licensing industry (more franchises in more product categories) and opening the door for toy companies to ride a licensing wave into new markets.

Entering a new national market comes with an extensive checklist of strategic decisions to consider.

Business opportunities (e.g., demographics, trends, cultural customs, and consumer behavior) must be weighed alongside business intelligence (e.g., economic indicators, ideal target audiences and retail channels, promotional opportunities, etc.).

Add licensing into the decision-making process and two key questions must be folded into the mix: whether to enter the new market with a property that is still emerging or already well-established, and whether the property is (or will be) recognized locally or internationally.

Branded products can generate more sales, and the most popular brands generate a higher revenue share and have an increased level of intention of future pur-

48 • The Licensing Book

chase. Interestingly, Philippe Guinaudeau of the research consultancy Kidz Global observes that while “best-sellerism is the rule,” the difference in popularity between the top 15 properties and the bottom 15 properties is smaller this year than in previous years.

Being able to differentiate passing fads from emerging properties that will have true staying power is a constant challenge powered by a combination of skill and luck. For example, when Angry Birds emerged as a digital brand several years ago, some people in the toy industry thought the property was a flash in the pan. Today, Angry Birds (and several of its peers in the digital and mobile space) have become mainstays in the toy aisle, including relative newcomer Minecraft, recognized by the toy industry as the 2014 Property of the Year at TIA’s Toy of the Year Awards. The enduring success of these properties is helping to forge strong connections between both digital and traditional playmakers and across youth entertainment industries (e.g., toy, video game, animations, theatrical, etc.).

In direct contrast to the appeal of all things digital, classic and retro toys and brands are making a huge splash in the global toy marketplace. Resurrected classics such as Teenage Mutant Ninja Turtles, as well the decades-long success of the Star Wars franchise, bridge the gap between generations and attract a whole new legion of fans. Tom & Jerry, the classic American cartoon series that debuted in the 1940s, is a massive hit among both boys and girls in China. And Peppa Pig, first launched in the UK a decade ago, has recently “exploded in popularity” across Europe and Australia, according to Kidz Global’s Guinaudeau.

Summer 2014

TIA Perspectives

Consumer Trends and Brand Preferences in Brazil, China, and Beyond

As a resource for its members that are looking to expand their businesses internationally, TIA widened the scope of its toy and trend research last year to include explorations of countries of particular interest to toy companies. Working in close cooperation with Kidz Global and another global research consultancy, Altios International, TIA uncovered consumer tastes and business operational issues (including everything from standards, piracy, tariffs, partnering with local producers, and more) in these new markets. The first reports were released early this year and focus exclusively on China and Brazil.

“Interest in U.S.-based properties is on the rise globally … particularly in developing markets,” says Anne McConnell, TIA’s director of market research and data strategy. “Savvy licensors and licensees that are looking to expand their sales operations outside the U.S. need data and insights that will support their creativity and instinct for ‘the next big thing.’ They must carefully assess the foreign markets they want to enter by gathering research about consumer demographics, which brands and toys the local children prefer, how the family makes its purchasing decisions, what media influences them most, and more. That’s the type of data that TIA is focusing on delivering.”

In looking at the Chinese and Brazilian studies, McConnell has Licensed toys and games have noted some very interesting brand been holding steady at about and licensing patterns.

“Running slightly behind the 30 percent of total U.S. toy U.S., licensed playthings in Brazil sales and rising upward in capture nearly 25 percent of the many other countries. toy market, and we can expect this figure to grow in the months and years ahead,” says McConnell. “While national Brazilian brands are leading in popularity among infants, international brands—primarily those coming from the

50 • The Licensing Book

U.S.—have proven most popular among other age groups, transforming Brazil into a highly dynamic landscape.”

According to the Kidz Global report, boys ages 7 to 14 are particularly drawn to video game brands, while products based on the U.S. movie Disney•Pixar’s Cars are most popular among boys ages 3 to 6. Barbie and the Portuguese comic book series Monica’s Gang are the frontrunner brands among girls.

In China, licensed toys account for more than 20 percent of the country’s toy market (estimated at U.S. $7 billion). The Pleasant Sheep, a national brand based on a hit Chinese animated series, leads in seven out of eight key demographic markets, while foreign brands such as Mickey Mouse, Tom & Jerry, and Angry Birds round out the top-tier brands in the country.

“It’s important to note that local specifications and restrictions on broadcasting foreign TV shows make China a more difficult marketplace to enter than other territories,” says McConnell. “Even so, the most popular properties are those that originate from TV shows, movies, and other entertainment. Among electronic and digital properties, mobile apps have a slight edge over video game brands.”

Upcoming TIA-commissioned studies from Altios and Kidz Global will explore toy and licensing trends and market entry opportunities (both consumer and business operational research) in Australia and Mexico.

Kidz Global will also conduct a consumer research study, including brand trends, in the U.S. •••• For more information about TIA’s research services, visit the Knowledge Network section of www.ToyAssociation.org or contact Anne McConnell at amcconnell@toyassociation.org or (646) 520-4870.

Summer 2014

Property Profile

Do- MINION-ation!!!

I

Universal Has a True Licensing Powerhouse in Despicable Me

by Phil Guie

n July 2010, Universal’s 3-D animated comedy Despicable Me debuted in movie theaters. The story of Gru, a super-villain who adopts three young girls—and also attempts to shrink the moon— struck a chord with critics and audiences. The film went on to earn $540 million at the box office worldwide, paving the way for last year's Despicable Me 2, which proved to be an even bigger hit. The sequel earned more than $970 million in theaters, becoming the fourth-highest grossing animated movie of all time, and establishing Despicable Me as a bonafide blockbuster franchise.

On the marketing front, Universal assembled its largest-ever global licensing campaign—consisting of more than 300 licensees and 100 promotional partners. In choosing which companies to team up with, the studio looked for partners that could offer innovation. As its master toy partner, Thinkway Toys introduced a line of action figures, plush, and role-play items at retail last year. Universal also made licensing deals with Hasbro, Hybrid JEM, and Gameloft, all major players in their respective categories.

The results speak for themselves: Thinkway Toys’ Despicable Me 2 line ranked among the top five brands at major retailers’ toy departments last year, while new Despicable Me licensed apparel has been Hybrid JEM’s top-selling property at practically every retailer where it has placement, according to a company executive. Meanwhile, within the first month of its release last year, the Despicable Me: Minion Rush mobile game app was downloaded more than 50 million times, becoming the second-fastest app to reach the mark.

The franchise also had the No. 1 DVD/Blu-Ray title last year, as well as 27 million fans and counting across various social media platforms. “You just don’t see numbers like this across the board unless a franchise has broad—male and female, young and old—global appeal,” says Cindy Chang, senior vice president, consumer products group, Universal Partnerships & Licensing.

Rise of the Minions

To date, the Minions—the short, yellow, unpredictably zany sidekick characters that first appeared in Despicable Me—have been a large part of the merchandise program’s success. Currently, they are visible in more product categories than one can shake a Fart Blaster at, and

52 • The Licensing Book

next year, the diminutive little creatures will star in Minions, a feature film spin-off of Despicable Me. From a licensing point of view, a major challenge in designing Minion-based products has been capturing their anarchic spirit, while optimizing their intrinsic value.

“The Minions have such interesting characteristics, and we focus on allowing their personality to shine through with every product,” says Albert Chan, CEO, Thinkway Toys, adding that Thinkway’s upcoming Minions line will use technology to bring the diminutive little creatures to life, even more so than the Despicable Me 2 line.

The Minions have also featured prominently in shirts from Hybrid JEM, thanks to their propensity for funny catchphrases.

“It hasn’t been a challenge to adapt the Minions to apparel; Minions with popular gibberish-speak and big-face goggle-head Minion shirts have been our best sellers to date,” says Derrick Baca, vice president, licensing, Hybrid JEM. “As we look to expand on where we’ve been, we will definitely be working to create new trend-forward looks for the characters.”

Despicable Me? Or Invincible Us?

In collaborating on products that capture all the excitement of the Despicable Me franchise, both Universal and Illumination Entertainment made sure licensees had access to creative assets early on.

This allowed for consistency with the films’ characters and stories, as well as products that are true to the brand. For example, in the case of Hybrid JEM, this led to character poses and catchphrases that the filmmakers anticipated would be popular with fans.

With next year’s release of Minions, as well as a third Despicable Me movie due out in 2017, Chang predicts that the property will continue to dominate the cultural landscape for years to come. Both longtime and newer licensing partners are constantly developing and releasing new SKUs in order to keep the brand fresh, she says. However, there is always room to grow the empire even further.

“Moving forward,” says Chang, “we will continue to seek innovative leaders who will create product that will delight our fans.”••••

Summer 2014

Thinkway Toys

Gameloft

Thinkway Toys’ Despicable Me 2 line ranked among the top brands of the year for major toy retailers, including WalMart, Target, and Toys “R” Us. Among the company’s hottest sellers were the Fart Blaster, which emits sound effects and has color-changing lights, and the Talking Minion Action Figure, which won the 2013 Toy of the Year Award for Boy Toy of the Year.

Thinkway’s Despicable Me toys are sold in “try me” packaging, which lets customers understand how the products come alive before purchasing them.

Upon its launch last year, Despicable Me: Minion Rush, from Gameloft, was the No. 1 free app in 86 countries on iPad, as well as the top free app in 65 countries on iPhone. Players get to be Minions, and can explore locations straight out of Despicable Me, including Gru’s Lab, El Macho’s Lair, and Minion Beach; and can customize their Minions with costumes, weapons, and other items.

Players are able to share their high scores with each other on social media.

Hybrid JEM

For Hybrid JEM, Despicable Me is the top-selling property at nearly every retailer where the company has placement for it. Top sellers to date include T-shirts featuring gogglehead Minions and catchphrases from the films, such as “Whaaa?” and “Bee-doh!” Hybrid JEM has incorporated a number of apparel market trends in its Despicable Me shirts, such as photo real, which combines real-life photo scenes with the characters, and graphics featuring daisies.

Summer 2014

Hasbro

Hasbro adapted existing board games Monopoly and Operation to feature Despicable Me 2’s Minions. In the Operation Despicable Me 2 game, players still use tweezers to remove ailments, and can set off the buzzer if their hands aren’t steady enough. However, this time the patient is Stuart, a Minion from the film, and players remove items such as unicorn fluff and banana belly, which connect back to the movie’s story. In the Monopoly Despicable Me 2 game, there is a Minion spinner, as well as Minion tokens to move around the board.

The Licensing Book • 53

A Look Inside

SONY SHOWS OFF A SLATE OF STAR PROPERTIES

by Ali Mierzejewski ony will bring quite the varied portfolio to Internatinoal Licensing Expo this year to show off to manufacturers, retailers, and other licensing partners. From big screen classics, such as Ghostbusters, to small screen new projects, such as the Breaking Bad spin-off Better Call Saul, Sony looks to cater to all demographics as it moves from this year into next—and beyond.

S

Who Ya Gonna Call?

Stay Puft Pop! Vinyl figure, from Funko

54 • The Licensing Book

Sony’s Ghostbusters brand turns 30 this year, and to celebrate the anniversary, Sony is looking to the brand’s cult following for success. “We’ve got a really great program—looking at all the collectibles and the true Ghostbusters fans,” says Greg Economos, senior vice president, global consumer products at Sony. “That’s working really well.”

Sony also has big plans in the works with a QSR partner for the fourth quarter of this year that will coincide with Halloween. Additionally, the company has partnered with Lego to bring a Sony Ghostbusters construction toy to market in June.

Gallery 1988 launched a Ghostbusters art gallery program in New York earlier this year. When the program launched, popularity skyrocketed and the gallery program received 20,000 likes on Facebook within 28 hours.

“It was a really big program and it was standingroom only,” says Economos. “They sold out of all the limited-edition posters in New York.” After runs in New York, Los Angeles, and Chicago, the gallery plans to finalize a last showing at Comic-Con International: San Diego in July.

Classics Revamped

Ghostbusters isn’t the only classic property that Sony will revamp throughout this year and beyond.

The company plans to reinvigorate the classic Smurfs program, with a new movie set to launch in 2016. The new, all-animated reboot of The Smurfs will present a range of opportunities for Sony to appeal to classic Smurfs fans as well as a whole new generation.

Sony will also reboot an old literary favorite: Goosebumps. With a new movie set for release in August 2015, Sony has teamed up with Scholastic to create a worldwide merchandising program. The new film features new monsters and a new storyline that amps up a classic childhood staple for the next generation of kids.

This year’s remake of the tale of everyone’s favorite little orphan Annie, starring Quvenzhané Wallis, Jamie Foxx, and Cameron Diaz, provided Sony with the opportunity to build a program around another well-known tale with a new vision.

The company is creating a collection with a soon-tobe-announced retailer that is inspired by the costumes from the film.

“It’s really a very cute movie,” says Economos.

“It’s just a breath of fresh air into Annie. It’s a fresh new look at the storyline, but it is really still embedded in the classic Annie story.”

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Other big screen projects for Sony in the next 18 months include Hotel Transylvania 2, a sequel to the animated film from last year. Sony is beginning to coordinate a program for next year, and plans on making it a much bigger licensing program than the one that was in place for the first movie.

Sony on the Small Screen

On the small screen, Sony still focuses its attention on the dynamic duo Walter White and Jesse Pinkman, along with their sleazy lawyer Saul Goodman. Breaking Bad was an enormous brand for Sony, and doesn’t show any signs of a slowing momentum.

“People still love that brand,” says Economos.

“Those people who didn’t watch the show on AMC now look forward to it on Netflix and take a whole ‘Breaking Bad weekend’ and watch all five seasons.”

This sort of fan following translates into big sales at specialty retailers, as well as mass retailers such as Wal-Mart and Target. It also allows Sony to smoothly transition into a whole new series, Better Call Saul, which serves as a prequel to Breaking Bad and follows the story of Saul Goodman, set to premiere in November. With new icons, elements, and characters, Better Call Saul’s program gives the fans of Breaking Bad a whole new brand to love.

For the female demographic, especially those in the 25 to 49 age range, Sony will offer a new series, Outlander, based on the book series of the same name.

“It’s almost like our Downton Abbey,” says Economos.

“It goes back in time and it’s based in Europe, so we’re going to launch a sort of lifestyle, fashion, accessories program for Outlander.”

Blacklist, one of Sony’s series currently on NBC, is one show that the company believes has potential to

Summer 2014

be very merchandisable. On ABC, The Goldbergs has been picked up again and Sony has launched an online program, and has begun to talk to retailers about more opportunities with the funny family from the ‘80s.

Sony also continues to work on the Wheel of Fortune and Jeopardy programs, though they are more limited in merchandising options, and two of the most popular soap opera brands—Days of Our Lives and The Young and the Restless. Sony plans to celebrate The Young and the Restless as it turns 40 next year.

Breaking Bad products are still a huge hit on the market, such as this Walter White figure, from Mezco.

Through 2014—and Beyond

Sony spends its time at International Licensing Expo meeting with potential merchandising partners for toys, games, publishing, apparel, accessories, and interactive and digital partners. Licensing Expo gives Sony the chance to preview its slate for the next 18 months. Economos also says that meeting with Sony’s domestic and international retail partners has become just as crucial for the company at the show.

“We really look at working with retailers directly now, and having that close relationship because they really are the ones who are dictating which licensees we go with,” he says.

Although Sony sees the potential in all of its entertainment brands, the company also understands the importance of approaching each brand as an individual concept. In other words, every property Sony has presents its own unique set of challenges when it comes to licensing. However, Sony focuses on setting up a program that’s right for each brand. “[Sony is] really working with the right partners— whether it’s the manufacturers or retailers—to figure out what makes the most amount of sense,” says Economos. “Because not every property justifies a huge licensing program.”

So while there is no favorite child in the Sony family, the company plans to expand on all its brands strategically throughout the show. With 20 international licensing agents, Sony and its entertainment properties appeal to all ages, genders, and genres worldwide. Whether it’s new brands or revamped classics, the company is always looking to grow into new spaces and territories.

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Character & Entertainment

Sony Promotes Sequels, Prequels, and Classic Brands

Last year, Sony Pictures launched The Smurfs 2 merchandising program with great retail placement and strong sales throughout North America. With more than 70 North American licensing partners covering every major category, the Smurfs brand had wide distribution. With a new animated film scheduled for release next summer, Sony looks forward to working with its existing and new partners to build a broad merchandising program for the Smurfs brand. Additionally in the children’s space, Sony looks to build on the success of the first Hotel Transylvania film in 2012 with another film in the franchise releasing in September of next year.

The production company celebrates the 30th anniversary of the Ghostbusters franchise this year with new partnerships and marketingrelated events.

For 2016 and beyond, Sony will work closely with

Scholastic on a new Goosebumps film-merchandising program and with King Features on a program for all-American superhero Popeye the Sailor Man. Sony Pictures TV’s hit show Breaking Bad came to a dramatic close last year, but the global merchandising program continues to flourish. Breaking Bad continues to be one of the top-selling global licenses with a full roster of partners covering apparel and accessories, costumes, collectibles, publishing, and more. With a new prequel series, Better Call Saul, launching this fall, Sony is planning a new program featuring many of the Breaking Bad characters and more. Wheel of Fortune and Jeopardy! are also staple TV properties with successful merchandising programs for the entertainment company.

Rubie’s Lets Kids, Adults Take on New Personalities

Rubie’s Costume Co. has developed licensed costumes for top brands, including WWE, Teenage Mutant Ninja Turtles (TMNT), Marvel, Ever After High, and DC Comics.

Kids can own the ring as John Cena, with the included muscle chest shirt, championship belt, and wristbands or fight crime TMNT-style as Leonardo, Michelangelo, Donatello, or Raphael. Available in kids’ small and medium sizes, the TMNT Crime Fighting Costume Box Set includes the turtle shell chest with the attached shell and an eye mask.

The Deluxe Leonardo costume includes a jumpsuit with an attached belt, elbow and knee pads, a mask, and a stuffed shell. This costume is available in kids’ sizes small through large, as well as toddler sizes.

In the superhero arena, kids can be just like Ever After High Spidey from The Amazing Spider-Man 2 with the Apple White

padded muscle chest jumpsuit and fabric mask, available in kids’ sizes small through large, or Marvel’s Captain America from Captain America: The Winter Soldier. This costume includes a padded jumpsuit and a mask, available in kids’ sizes small through large.

Adults can dress as DC Comics’ Batgirl in a costume that includes a tank dress with a removable cape and an embellished Bat logo. The costume is available in adult sizes small through large.

Girls can dress up as Apple White and Madeline Hatter with Rubie’s Ever After High Collection. The Apple White set includes a dress, a bolero jacket, and tights, while the Madeline Hatter set includes a dress, tights, a necklace, and gloves. Each set is available in kids’ sizes medium through extra-large.

TMNT Crime Fighting Costume

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Summer 2014

HBO Commemorates True Blood’s Last Season with Funko Figures

HBO’s True Blood will bid farewell to fans in its seventh and final season this year. Funko and HBO Global Licensing have signed for a new line of True Blood Pop! Vinyl Figures, which will begin rolling out in July as the last few episodes of the show air.

The new figure series will include some of the most popular characters from the show, such as Sookie Stackhouse, Eric Northman, Alcide Herveaux, Lafayette Reynolds, Pam Swynford De Beaufort, and Bill Compton—which will arrive a few weeks after the initial series launches. Each stylized True Blood Pop! Vinyl Figure will stand 3.75 inches tall and come in a window display box. The figures are designed for fans and collectors ages 17 and up.

Funko products are available nationwide at Barnes & Noble Booksellers, Toys “R” Us, Hot Topic, Target, Wal-Mart, 7Eleven, specialty toy retailers, and online at the HBO Shop and Amazon.

FremantleMedia Licensing Expands Key Properties

Licensor of entertainment, factual, and drama properties, FremantleMedia expands its key properties across multiple platforms. Focusing on family entertainment brands such as Strange Hill High, Tree Fu Tom, Kate & Mim-Mim, Ella the Elephant, and Grojiband, FremantleMedia’s Kids & Family Entertainment division will work with global partners to build up the franchises.

Strange Hill High has 13 licensees in the UK in a number of categories, while the series has been sold to more than 50 territories, including ABC in Australia; France Television in France; SVT in Sweden, and more.

After launching on CBeebies in the UK, Tree Fu Tom has now been sold to more than 75 territories and holds 25 UK licensees. Additionally, preschool series Kate & Mim-Mim, produced by Nerd Corps Entertainment, will launch in the UK on CBeebies.

The preschool series Ella the Elephant has been sold to more than 50 territories and recently launched on Disney Junior in the U.S., ABC in Australia, Pop in the UK, and Knowledge Network

Summer 2014

in Canada.

Musical comedy Grojiband launched in the U.S. on Cartoon Network last year and has since been sold to more than 30 territories globally, including Cartoon Network in Latin America, Canal J in France, K2 in Italy, and ABC2 in Australia.

Celebrity Name Game, a new show developed by Courteney Cox and David Arquette’s Coquette Productions, has recently launched in the U.S., while FremantleMedia solicits licensing partners across board games, card games, publishing, and more.

In a licensing agreement with Condé Nast’s Self, FremantleMedia has launched the Self Healthy Kitchen frozen food line in major grocery stores in the U.S. In addition, FremantleMedia and Epicurious, Condé Nast’s award-winning digital food brand, have recently signed a licensing agreement with Tabletops Unlimited for an Epicurious-branded housewares collection. The line features products across cookware, bakeware, and more.

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Fox Unveils Big Programs for Major Entertainment Properties

Twentieth Century Fox Consumer Products (FCP) will debut a number of multi-category licensing programs featuring top entertainment franchises in TV and film. They include the upcoming animated film The Book of Life, which will have accompanying merchandise offered in partnership with Target, Hot Topic, and other major retailers. Current licensing partners include apparel from Bentex, accessories from Loungefly, stationery and novelty items from Innovative Designs, toys from Funko, home products from The Northwest Co., and publishing from Simon & Schuster and Titan Books.

The Strain, a new FX drama series based on the vampire novel trilogy, will debut with a multi-category licensing program. Partnerships include apparel from Fifth Sun, figures from Mezco, costumes from Spirit Halloween, and

books from Insight Editions.

While the seventh and final season of Sons of Anarchy will premiere this fall, the show will live on through more than 60 global licensee partners and 10 new product programs. Partners include Time Inc. for a behindthe-scenes trade book, Boom! Studios for comic books and graphic novels, St. Martin’s Press for original novels, Running Press Books for gift books and novelty publishing, Metal Mulisha and Freeze for apparel, Segal Fine Art for canvas prints, Undergirl for apparel and accessories, Gale Force Nine for board games, and Mezco Toys for action figures.

FCP also enjoys licensing partnerships for the TV series The Simpsons and Family Guy, as well as movie properties Ice Age, Avatar, Alvin and the Chipmunks, Planet of the Apes, and the Rio franchise.

Paws Inc. Grows Garfield Property

Paws Inc. continues to expand Garfield’s global licensing and promotional programs across multiple platforms, including toys, TV, digital media, and more. Master toy licensee Wicked Cool Toys has acquired worldwide rights to develop and market a line of Garfield-inspired figures, plush, vehicles, role-play sets, seasonal products, and more, distributed by Bulldog Licensing Inc. The Garfield Show, a production of Dargaud Media, Paws Inc., and France 3, airs in 211 territories, with wide distribution by Turner’s Cartoon Network. In the U.S. and Canada, Innovative Candy Concepts will offer branded liquid chocolate, spray candy, and Goo4You, while Buckle Down will bring accessories, including belts, purses, suspenders, guitar straps, wallets, and more that will also be sold in Australia. Also in the U.S., Playtime LLC has signed to create a Garfield-themed beach and pirate play area at the Volusia Mall in Dayton Beach, set to launch in November. The interactive play area will features slides, crawl tunnels, climbers, and more.

Digital licensing partner Bare Tree Media will offer Garfield-branded email, photo apps, and other virtual goodies, including mobile stickers via Line, Lango, MessageMe, Tango, Viber, and We Chat. More Garfield content will hit the digital space via partners Totally Apps, Anuman, Genera Mobile (Spain), Socialin Inc., MyBrandEmail, and Budge Studios.

In the UK, Bulldog Licensing Ltd. has secured deals with London-based fashion label Lazy Oaf, men’s nightwear label Poeticgem, and Sambro for branded backpacks, stationary, and puzzles for kids. Other apparel licensees include Blues, Silver-Knit, Digital Giving, and Brand International.

Globally, Agent Plus Licens, TBOE, H&M Worldwide, Jumbo SA, Oysho, and Women’s Secret have signed direct-to-retail deals for apparel. In addition, Boost Group, Editorial Planeta, Fiore Biglietti S.R.L., Nakladatelstivi Crew S.R.O., Optical Disc Solutions SRL, and Societe D’exploitation Des Spectacles Des France Bouglione have secured deals. Promotional partners include Burger King, Quick France, Bayer Animal Health, and Kraft Foods.

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Character & Entertainment

Brandgenuity Expands the Duck Dynasty

Brandgenuity will grow in the entertainment space this year with multiple properties. The Duck Dynasty licensing program has signed more than 80 licensing partners in 17 unique product categories with 1,200 SKUs and three LIMA Award nominations.

Along with MGM Consumer Products, Brandgenuity launched a licensing program for Vikings, the TV show following a clan of Norse warriors, now in its second season on the History channel.

Apparel and accessories have already launched at Hot Topic and Spencer Gifts. Also from MGM, Fargo is a show based on the classic Coen Brothers film, starring Billy Bob Thornton and Martin Freeman, which premiered to strong ratings on FX in April.

Brandgenuity also announces the first partners for the iconic auto restoration garage that is featured on Fast N’ Loud, Gas Monkey Garage. This edgy brand will be extended into apparel, accessories, and more.

BBC Worldwide Kicks It into Top Gear with Playseat

BBC Worldwide North America and racing simulators manufacturer Playseat have partnered for two new Top Gear-themed gaming seats, which are designed to deliver the ultimate driving experience for all gaming fans. Both products, inspired by BBC’s car show Top Gear, will be available for purchase this July.

The racing simulators are compatible with driving games on all platforms, including Xbox One, Xbox 360, PC, Mac, PlayStation 2, PlayStation 3, PlayStation 4, Wii, and Wii U. The simulators will work with all wheels and pedals in the market, including Thrustmaster, Logitech, and Fanatec. They provide the optimal experience for a more realistic, responsive ride, allowing players to enjoy their favorite driving games at a whole new level of style and attitude. The seats are compatible with multiple games, including Forza Motorsport 5 on Xbox One, where players can race Top Gear’s mysterious tamed racing driver, the Stig, around Top Gear’s famous test track in Surrey, England.

The Playseat Evolution—Top Gear is designed for private use

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and has a full adjustable seat for players of all sizes. Players can easily control the incline of the seat, the distance to the pedals and steering wheel, and more. The seat is made from the highest quality leather-look vinyl for added durability, with a special Top Gear press logo on the seat cushion and an amended seat back that allows for even more aggressive racing. The frame features a special coating designed for this edition of the seat, with metallic additives for added strength and durability.

The Playseat Xtreme Elite—Top Gear is designed for public use and features strong patented tubing framework for extreme rigidity and durability, and a special metallic coating with a mild golden sheen just for the Top Gear version. The seat offers a realistic racing experience, with a 1:1 ratio to a true racing position and a patented sliding design that allows the seat to be adjusted without losing the ideal position. There is also a patented tilting mechanism that keeps the video screen and the wheel aligned at all times so the player never loses his or her place in the game.

Summer 2014

Delta Dresses Up Kids’ Bedrooms in Disney, Superhero Themes

New additions to Delta’s Mickey Mouse line include the Mickey Mouse 3D Toddler Bed, which is lightweight, sturdy, and ideal for transitioning kids from a from crib to a toddler bed. Its design features Mickey Mouse and Mouseketeer characters. The new Mickey Mouse 6 Multi-Bin Toy Organizer keeps children’s toys in order, offering uniquely sized storage boxes for different toy sizes. The bin’s design features classic characters such as Mickey and Donald Duck. The new Mickey Mouse Chair Desk also features a Mickey Mouse design, and the seat opens into a storage space for toys, books, and more. Both the Mickey Mouse Table and Chair Set and the Mickey Mouse Upholstered Sofa provide durable, Mickey-themed spots where little ones can sit to study or relax. The Mickey Mouse Figural Upholstered Chair is constructed with soft plush material and designed with authentic Mickey Mouse colors.

The Minnie Mouse collection gains the Minnie Mouse 3D Toddler Bed, with many of the same features as the Mickey Mouse 3D Toddler Bed, as well as a cheerful Minnie Mouseinspired theme. Other items include the Minnie Mouse 6 Bin Multi-Bin Organizer, which features Minnie and Daisy Duck, and the Minnie Mouse Chair Desk. The Minnie Table and Chair Set features Minnie and Daisy Duck, while both the Minnie Mouse Upholstered Chair and the Minnie Mouse Figural Upholstered Chair offer comfortable spots for reading and relaxing. The latter is constructed with soft plush material and is designed with Minnie Mouse’s authentic colors.

New additions to the Spider-Man collection include the Marvel SpiderMan Twin Bed, featuring a plastic and Disney•Pixar Cars Lightning metal frame, removable guardrails, 3McQueen Comfy Chair

Summer 2014

Minnie Mouse Twin Bed Set

D graphics, and colorful decals of the superhero character on its headboard and footboard. The Marvel Spider-Man Toy Box is a colorful addition to any kid’s room, featuring a design based on Marvel’s The Amazing Spider-Man, as well as a hinged safety lid.

The Marvel Spider-Man Chair Desk with Storage Bin provides a place for kids to sit and work on projects, and has bold colors based on kids’ favorite Spider-Man characters. The metal Spider-Man Easel has a Spider-Man design, and can be used as either a blackboard or a whiteboard.

Delta also has licensed Teenage Mutant Ninja Turtles (TMNT) bedroom furniture for kids. The Nickelodeon TMNT 3D Toddler Bed boasts a cheerful, TMNT-inspired design on the headboard and footboard, and uses a standard crib mattress.

The Multi-Bin Toy Organizers come in six-bin and nine-bin versions, and each has a sturdy wooden frame and colorful illustrations. The Chair Desk features a TMNT-themed painted finish, a built-in cup holder, and a storage bin underneath for art supplies, books, or toys.

Delta will expand its Comfy Chairs collection to include Disney•Pixar Cars character Lightning McQueen. Comfy Chairs each include an inflatable chair with a character slip cover.

All of the items meet JPMA safety requirements, and many require some assembly.

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Epic Rights Rocks Out with Legendary Celebrity Brands

Epic Rights, a full-service global branding, licensing, and rights management company, will showcase the key celebrity brands it represents globally, including the rock band KISS, which celebrates its 40th anniversary this year; John Lennon; the Woodstock brand, which celebrates its 45th anniversary this year; and contemporary pervasive artist and threetime Emmy Award-winner Gary Baseman.

Epic Rights has entered into a multiyear merchandise, licensing, e-commerce, and digital media agreement with KISS, joining forces with Paul Stanley and Gene Simmons to build the KISS global franchise in a highly integrated manner through a combination of touring, music sales, merchandise, licensing, social media, and promotional partnerships.

This year, KISS celebrates its 40th anniversary and enters a prolific period of their career with KISS an induction into the Rock and Roll Hall of Fame, the release of Paul Stanley’s autobiography

by HarperCollins, the L.A. KISS Arena Football Team’s inaugural season, the Jon Varvatos Dressed to Kill ad campaign, and a three-month summer tour with Def Leopard.

Epic Rights will build the KISS brand through a focused global strategy. The company will introduce new artwork, photos, and designs and new licensees. The company is committed to developing much closer relationships between the licensees, retailers, Epic Rights, and KISS band members. Among its fresh approaches for the KISS brand, Epic Rights will launch a social media campaign targeting the more than 12 million Kiss

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Army Fans that will support retailers and licensees.

Epic Rights recently partnered with Perryscope to manage the global licensing program for Woodstock. Perryscope and Epic Rights will serve as global licensing agents, overseeing a series of innovative initiatives that both honor and reflect the Woodstock legacy and lifestyle, with its message of the power of music, respect for others, environmental activism, and a belief in the community’s ability to lead social change.

The Woodstock global licensing program will be supported by a new social media and e-commerce platform that will further engage current fans and introduce the brand to younger generations. The product execution and retail development strategies will reflect Woodstock’s global appeal and recognition. The licensing program will be based on a fashion-driven lifestyle program that reflects the ongoing trend of natural, bohemian, and custom-designed products, including apparel, accessories, home goods, and stationery.

Epic Rights also serves as the global licensing agent for contemporary artist Gary Baseman, whose work has crossed many lines of art as a painter, illustrator, video and performance artist, animator, TV and movie producer, curator, and toy designer. Epic Rights will develop a global consumer products program for the brand based on Baseman’s illustrative work and family of characters, focusing on categories including apparel, accessories, stationery, publishing, housewares, gifts and novelties, collectibles, and more.

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Licensing Expo 2014

Character & Entertainment

Saban Continues the Power Rangers Legacy

Saban Brands’ Power Rangers brand is licensed to more than 200 partners throughout North, South, and Central America; Europe; Australia; India; and South Africa, across markets including toys, apparel, games, party goods, and more.

Bandai, master toy licensee for the brand, has recently created a line of Power Rangers Super Megaforce toys, available now in the U.S. with an international rollout to come later this year. Products include new Morphers, Ranger Keys, Megazords, and more toys inspired by this season’s series, which currently airs in 150 markets worldwide.

Power Rangers Megaforce, the franchise’s 20th season, is available globally On Demand and through Netflix, Hulu, Xbox, iTunes, and Amazon.

International broadcasters include Nickelodeon in the UK, Germany, Russia, and Benelux, with TNT Russia soon to follow. In the U.S., the 21st season, Power Rangers Super Megaforce, began airing on Nickelodeon this February. The series is set to air internationally on Channel 5 and on Nickelodeon in the UK this summer.

In Latin America, both Power Rangers Megaforce and Power Rangers Super Megaforce will debut on Televisa in Mexico, Corporation Medcom in Panama, America TV in Peru, Intrasa TV in Nicaragua, and TC TV in Ecuador. The two seasons have also been licensed to Cartoon Network Latin America, which will serve as the licensing and merPower Rangers chandising agent for the brand in Deluxe Legendary the region.

Morpher, from Bandai America Saban Brands’ animated pre-

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school series Julius Jr. currently broadcasts on Nick Jr. in the U.S. and will premiere in international markets this year, including on Disney Junior in Italy, TF1 in France, Network 10 in Australia, and Discovery Kids in Latin America. Plans have been made to expand the Julius Jr. series to countries in Europe, the Middle East, and Africa.

The Julius Jr. brand will also make its way to retailers, including Toys “R” Us, Amazon, Wal-Mart, and Target, with its full consumer products rollout this year. Global master toy licensee Fisher-Price has created a toy line for kids ages 2 and up, featuring Julius Jr.inspired play sets, such as the Julius Jr. Rock ’n Playhouse Box, which includes a 3-inch Julius Jr. figure, an art table, a keyboard, a microphone, a skateboard, a ramp, and a rocket.

In a licensing deal with Random House Children’s Books, a full range of color and activity books, leveled readers, storybooks, and novelty books for preschool kids is available. A consumer products line featuring apparel, accessories, craft activities, and role-play items will follow.

In its sixth season, Digimon Fusion currently airs on Nicktoons and Vortexx on The CW in the U.S., ITV in the UK, and YTV in Canada. Later this year, Digimon Fusion will also premiere on Cartoon Network Latin America, Go! in Australia, and Canal Panda in Portugal.

In partnership with Bandai, a branded consumer products line is available in the U.S. and will be available in the UK, followed by global distribution later this year. Kids can collect the Digimon Fusion card games and DigiFusion figures.

Saban Brands’ Paul Frank brand has seen growth in Asia, with more than 100 Paul Frank stores open in China. Additional plans include a Paul Frank Café launch throughout China and a home concept store to include home décor, bedding, and more.

Saban Brands will soon open its Shanghai office to support its growth throughout Asia.

Summer 2014

Dracco Has Filly Poised to Go Far

The Filly brand, represented by Dracco, has sold more than 70 million figures with 250 individual characters in more than 50 countries with more than 40 top licensees. Recent partnerships include Ravensburger for Filly puzzles and board games in German-speaking markets, Central and Eastern Europe, and Russia.

Leomil, Ernstings, and Puettmann continue to partner for Filly apparel. Additional partners include Beauty & Care for bath products, Alenio for wall decoration and adhesives, VTech for learning toys, Amscan for party goods, Herding for home and living products, and Blue Ocean for magazines. This summer, McDonald’s will launch a Happy Meal campaign featuring the brand across more than 1,400 restaurants in Germany.

The newest Filly series, Filly Butterfly, is supported by a TV ad campaign in Germany, with strong TV and marketing support internationally. Point-ofsale in-store marketing and in-store events introduce consumers to Filly Butterfly at retail, while a digital component allows consumers to engage with Filly characters on myfilly.com. The website also Filly

includes games, kid-safe social interaction, and specialized content for each global region. Each single-figure foil bag of the collectible horses includes an online code for a virtual gift.

In addition, the Filly Photo Fun app blends real-life pictures with Filly artwork. A new Filly Butterfly version of the app was introduced earlier this year.

Expanding the brand next year is the new 3-D animated TV series Filly Funtasia, which consists of 26 half-hour episodes and follows the adventures of Filly friends at a school for magic. A full range of merchandise and digital media will support the series, with publishing, toy, puzzle, and board game licensees already secured. There are multiple licensing opportunities still available for the brand.

This year also sees the launch of a major campaign for Zombie Zity, a property that will play out across figures, collector cards, a magazine, and an interactive website with games. Consumers will be introduced to the brand through TVC campaigns, retail and point-of-sale marketing, and a wide digital presence that includes CGI-animated webisodes. A second Zombie Zity app focusing on Bouncerz will launch this fall.

Leomil will produce a line of Zombie Zity footwear and apparel, Herding will manufacture Zombie Zity home textiles, and Dracco’s agent P&L has attracted stationery and apparel deals in Latin America. More agreements are currently under discussion, and additional licensing opportunities are available.

Aardman Set to Bring Shaun the Sheep to the Big Screen

Aardman Animations’ Shaun the Sheep The Movie will come to movie theaters worldwide in the spring of next year. The film is currently in production. Now in its fourth season, the Shaun the Sheep TV series currently airs in 170 territories, making it one of the top-rated children’s series enjoyed by families worldwide.

As anticipation for the movie release builds, Aardman will continue to develop an international licensing program for the property across a host of core categories and will seek additional partners for the brand at Licensing Expo. Aardman plans to present new Shaun the Sheep product opportunities and style themes for both this year and next year. The brand has multiple partners signed on, including a publishing deal for Tales from Mossy Bottom Farm and Shaun the Sheep The Movie titles and a joint licensing program with Rugby World Cup 2015.

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Mind Candy Expands Moshi Monsters, Launches New IP

Mind Candy’s Moshi Monsters remains a top gaming property for the company, with a new combat strategy game to launch this year.

Moshi Monsters: Village expanded the brand’s reach in more than 100 countries after its release for Android devices on Google Play.

Mind Candy has also launched Moshi Karts and Talking Poppet apps. Moshi Monsters: The Movie launched in theaters across the UK and Australia, and is now available on DVD. This year’s brand initiatives center on furthering product innovation and global partnerships.

This year sees the launch of Mind Candy’s new IP, World of Warriors. This game for mobile and tablet devices is teeming with an ever-increasing cast of history’s greatest warriors. Summoned to the hostile Wildlands from a mind-boggling array of cultures, tribes and civilizations, each warrior has a story to tell—but the

only way to survive is to fight. Following the launch of the new game later this year, the brand will be supported by a consumer products line next year.

Activision Brings Skylanders to Life Across All Categories

To date, Activision’s Skylanders franchise has generated more than $2 billion in retail sales worldwide, making it the No. 1 kids’ video game franchise last year. This year, Activision continues to bring the magic of Skylanders to life with meaningful product extensions.

Activision has signed 175 global partners for its Skylanders brand. In addition to the core interactive game and action figure product lines, which are produced by Activision, Skylanders is currently represented in every major category. Partners include Skylanders bedding, from Franco

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Hybrid, Mad Dog, MZB, and Isaac Morris for apparel and accessories; FAB for back-to-school products; McDonald’s as a restaurant partner; and General Millls for fruit snacks. Pressman will provide board games, Mega Brands will provide construction sets and role-play items; and Rubie’s Costume Co. has signed on for costumes.

Other Skylanders partners include BDA for gaming accessories; Franco, Northwest, and York for home décor; American Greetings for party goods; Penguin for publishing; IDW for graphic novels; Crayola for color and activity sets; Wish Factory for swim products; Street Flyers for sporting goods; and Trends for posters, calendars, and stickers.

Activision seeks additional partners for Skylanders in the first aid, oral care, home goods, confections, collectibles, and novelty categories.

In addition to Skylanders, Activision is creating a lifestyle merchandising program for its Call of Duty franchise. For Call of Duty, Activision has partnered with Mega Brands for construction sets, Turtle Beach for headsets, Trends for posters, BDA for mobile accessories, and Bioworld for apparel and loungewear.

Summer 2014

Licensing Expo 2014

Character & Entertainment

Sakar Adds Union J to Its Roster of Licenses

Sakar International has signed a deal to produce products featuring Union J. The four-piece band rose to fame on the UK version of The X Factor in 2012 and has since enjoyed worldwide success. Sakar will create a line of electronics and accessories under the Union J brand, which will bring the members’ smiling faces to tweens and teens across a variety of products.

The lineup includes USB drives, boom boxes, headphones, earbuds, walkie-talkies, karaoke systems, and smartphone and tablet cases.

Bandai Gets Friendly with Tamagotchi Licensing

As part of the new Tamagotchi brand licensing program, Evy of California will apply its KuKee technology, which provides consumers with a customized interactive augmented reality (AR) experience, to Bandai America’s Tamagotchi Friends fashion line.

Fans can create animated Tamagotchi characters by downloading the KuKee app and scanning the marker embedded in special Tamagotchi-branded fashion apparel and featured on collectible posters available in new Tamagotchi Friends product packaging.

In addition, consumers can create illustrated self-portraits with Tamagotchi Friends fashion elements on a digital Dream School student ID card, which they can share via social media.

This fall, Evy of California will release a new line of girls’ apparel incorporating its KuKee technology, along with artwork and imagery inspired by the Tamagotchi digital experience. Evy’s new line will include active wear, dresses, fleece, T-shirts, pants, shorts, skirts, and sweaters.

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The Beatrix Girls Rock Out in the Real World

PopStar Club will continue to expand its growing portfolio of licensed products for The Beatrix Girls, a line of collectible pop star dolls driven by original music. The brand will extend into several categories, including apparel, accessories, bedding, stationery, footwear, headwear, and musical instruments.

Peavey Electronics will capture The Beatrix Girls in highly detailed artwork on real musical instruments, including guitars and drums, set to launch this spring. Berkshire Fashions has signed on for baseball caps, cut-and-sew fashion headwear, knit and polar fleece hats, gloves, mittens, scarves, headbands, ear muffs, leg and arm warmers, socks, slipper socks, rain slickers, ponchos, and umbrellas. Hanover Group will produce necklaces, bracelets, earrings, rings, anklets, charms, headbands, barrettes, ponytail holders, hair clips, hair scarves, lanyards, coin purses, zipper pulls, flashlights, key chains, backpack clips, shoelaces, novelty headbands, tiaras, wands, eye masks, sunglasses, and gift sets.

Skyhigh International LLC will create back-to-school stationery items, including notebooks, memo books, portfolios, binders, planners, journals, address books, list pads, book covers, stationery sets, stickers, pens, and pencils. Jay Franco & Sons has signed on for beach towels, beach blankets, beach backpacks, bedding, bath products, and room décor. Additionally, AME will create sleepwear for the brand, and Playa Vista Designs will have footwear of all types and size ranges.

Fast Forward has also signed on for handbags, backpacks, totes, sports bags, small leather goods, cell phone cases, luggage, and beverage bottles.

Summer 2014

Uglydoll Signs New Co-Branding Partnerships

Uglydoll will commemorate the 75th anniversary of The Wizard of Oz with a collection inspired by the film’s iconic characters. The collection includes Moxy as Dorothy, Babo as Cowardly Lion, Jeero as Scarecrow, Wage as Tin Man, and Ox as the Wicked Witch of the West. Each Uglydoll Wizard of Oz character will be available in an 11-inch plush and a plush clip this September.

Earlier this year, the Galeries Lafayette store in Bejing partnered with Uglydoll to ring in the 2014 Chinese New Year. Uglydoll proudly took over all of the window displays and was featured in an outside display in celebration.

Uglydoll has multiple co-branded licensing agreements, including partnerships with DC Comics, KISS, and Hello Kitty. The Uglydoll and DC plush collaboration will continue to expand throughout next year. Additionally, new collaborations will bring Uglydoll into the science-fiction arena next year. New licensees are also being signed for bath and bedding categories.

Uglydoll has expanded representation globally this year, signing agents in Brazil and soon in Japan. Currently, the brand has representation in China, Taiwan, Korea, and Australia.

Titanfall Rises Across Multiple Categories

Titanfall, from Electronic Arts Inc. (EA), is a new first-person shooter game that lets players engage in action sequences as elite pilots or as 24-foot-tall armored giants known as Titans. Developed by Respawn Entertainment, the game premiered in March and took the No. 1 ranking in software sales for the month.

Respawn has a wide range of official Titanfall merchandise planned for release, including toys, books, gaming peripherals, apparel, and more.

This fall, toy partner K’NEX will introduce new building sets that let fans construct their favorite Titans. The Titanfall: MCOR Ogre Titan Building Set and the Titanfall: IMC Atlas Titan Building Set include more than 160 pieces for a 12-inch replica Titan, while the Titanfall: Ultimate Angel City Campaign Building Set recreates the game’s war-torn setting, and includes enough pieces to build two Titans. All sets are suitable for kids ages 8 and up.

Summer 2014

K’NEX also has two upcoming sets, the Titanfall: IMC Pilot Strike Building Set and Titanfall: MCOR Pilot Attack Building Set, which let kids ages 8 and up construct war zones for the pilot characters to fight their way through. Each set includes more than 80 K’NEX pieces, and features walls that “explode” just like in the game.

Threezero will also have a line of Titanfall figures, including 1:12- to 1:6-scale models of both the Titans and the pilots.

Other licensees include MadCatz for headsets, mice, keyboards, and other gaming peripherals; Turtle Beach for headsets; Jinx! and Level Up Wear for a line of apparel and accessories; Trends International and GB eye for posters; and EP Memory for USB drives and cases. Prima will provide both standard and collector’s edition strategy guides, and Titan Publishing will release the book The Art of Titanfall.

The Licensing Book • 69

Licensing Expo 2014

Character & Entertainment

Marvel Web Slings into Action

The Avengers’ theatrical sequel The Avengers: Age of Ultron will experience retail support with a robust licensing campaign featuring a wide number of partners across a variety of categories, including toys from Hasbro, Lego, and Hot Wheels; wheeled goods from Huffy; performance wear from Under Armour; apparel from Mad Engine and C-Life; party goods from American Greetings; social expressions from Hallmark; bedding from Jay Franco; and a host of new consumables licensees. A retail strategy that will offer consumers distinct and separate retail experiences will support the licensing program.

Ultimate Spider-Man: Web Warriors is the third season of the animated series and will broaden the Spider-Man universe with a new identity and new characters. Delivering an all-new SpiderMan experience focused on web-shooting and expanding the dynamic of the franchise by introducing a team of Web Warriors, the series will showcase a multi-character approach that is new to the franchise. The Web Warriors, which will include Spider-Man

along with Iron Spider and Agent Venom, will introduce unique web-shooting abilities for each character that will play out across product lines. A merchandising campaign that taps into the team’s unique style and the abilities of the Marvel Universe’s newest web-slinging heroes will support the series.

Building on successful apparel programs with trendy retailers including Forever 21 and Wet Seal, Marvel seeks to develop unique and creative partnerships with fashion-forward brands and influential fashion personalities.

Marvel will use a targeted approach to introduce new Marvel characters with licensing potential. Ant-Man, starring Paul Rudd in the title role, is the latest installment in Marvel’s cinematic universe and introduces a new hero in the 2015 film. Marvel Television brings four additional characters to the forefront as part of a multi-year deal with Netflix, starting with a Daredevil series next spring. This builds on Marvel’s adult fan and collector focus on niche characters, such as Ghost Rider, Punisher, and Black Panther.

Kidz Bop Dreams Big and Sings Loud

Kidz Bop takes the stage this summer with its “Dream Big, Sing Loud!” tour. The Kidz Bop Kids will travel to various locations, performing kid-friendly versions of chart-topping songs in a high-energy, interactive show that the whole family will enjoy.

The Kidz Bop Kids have been named Billboard Magazine’s No.1 Kids’ Artists for the fourth consecutive year and their most recent album, Kidz Bop 25, debuted at No. 3 on the Top 200 chart.

Timed to the release of Kidz Bop 26, Kidz Bop and Sonic will launch a My Wacky Pack Kids Meal promotion, running from June 23 to July 31. Kidz Bop-themed premiums will be distributed at more than 3,500 participating Sonic restaurants nationwide. Kidz Bop continues to roll out its content across LeapFrog and VTech platforms, and bring kids musical toothbrushes with Church & Dwight Co. In addition, Kidz Bop will once again partner up with Six

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Flags Entertainment Corp. for a major summer concert event and national sweepstakes.

Summer 2014

Licensing Expo 2014

Character & Entertainment

Nickelodeon Launches Product Lines for Brand Extensions

Nickelodeon Consumer Products will feature a portfolio of shows and characters geared toward preschoolers, kids, and adults.

Nickelodeon is set to launch the biggest merchandising and promotional program for Peter Rabbit, which launched last year as a re-imagined CGI-animated preschool series based on the Beatrix Potter children’s books. The network rolled out Peter Rabbit online and at both specialty and mass brick-and-mortar retailers, including a 20-foot statement in Walmart’s Easter seasonal area. This fall, an expansive line of consumer products will launch at mass, including a toy line from Cartwheel that includes plush, play sets, role play, and a Hop & Dance interactive toy.

Newcomer to the Nick roster is Paw Patrol, a CGI-animated action-adventure series made in partnership with Spin Master. Starring six heroic puppies who are led by a techsavvy 10-year-old boy named Ryder, the show features curriculum that focuses on citizenship, social skills, and problem-solving. The network has signed more than 25 new licensing partnerships with Rubie’s Costume Co., Raskullz, Random House, LeapFrog, and more, with products hitting shelves this fall.

Dora and Friends is a new preschool series featuring the iconic Dora the Explorer character in new adventures with new friends and a new interactive curriculum. Nickelodeon has teamed up with Fisher-Price to expand the Dora franchise with interactive dolls, play sets, and accessories set to hit retail shelves in August.

Nickelodeon will also unveil products and new merchandising partners for Bubble Guppies and international preschool series Dora the Explorer, which will live alongside the new Dora and Friends line at retail.

Nickelodeon will also showcase two new preschool series: Blaze and the Monster Machines, premiering this fall, and Shimmer & Shine premiering next spring. Blaze and the Monster Machines features a curriculum dedicated to all areas of STEM (science,

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technology, engineering, and math). The series follows an 8-yearold boy named AJ and his monster truck Blaze on super-sized adventures. Shimmer & Shine is a 2-D-animated show about twin genies who unintentionally create chaos while granting wishes for their human best friend, Leah. The series features an emotional-intelligence curriculum that highlights making mistakes as a path to learning and doing better next time. The retail programs for these new series will hit shelves next year and in 2016, respectively.

The Teenage Mutant Ninja Turtles (TMNT) series was relaunched on TV less than two years ago, and it has more than 100 million viewers worldwide. At this year’s International Licensing Expo, Nickelodeon will introduce more than a dozen new licensing partners for the CGIanimated series, including Build-ABear, Aqua Leisure, and Jazwares.

This fall, Nickelodeon will expand to new demographics with the launch of Half-Shell Heroes, small and rounded action figures and play sets designed and safety-tested for the youngest TMNT fans.

Nickelodeon will extend the brand’s presence across all retail channels with movie-branded products timed to the August 8 release of Paramount Pictures’ theatrical film Teenage Mutant Ninja Turtles. This fall, Nickelodeon will unveil customized merchandising and marketing programs with Playmates Toys, Rubie’s Costume Co., Activision, Insight Editions, Richard Leeds, Freeze, MZ Berger, and more at top retailers.

This year, Nickelodeon has an expansive roster of refreshed licensees for SpongeBob SquarePants, including master toy licensee Just Play with an offering of collectible figures, talking action figures, vehicles, assorted plush, and role-play products; Mega Bloks with construction toys; NKOK with electronic vehicles; and Mattel with Power Wheels ride-ons. SpongeBob’s second theatrical movie will launch early next year, with an extensive retail and product collection in the first quarter.

SpongeBob’s momentum will continue into early 2016, with the show’s much-anticipated 200th episode after nearly 15 years.

Summer 2014

Licensing Expo 2014

Character & Entertainment

Sesame Workshop Makes Healthy Choices

Sesame Workshop has signed new licensing deals for the classic Funella Furchester, the welcoming monster owner, her loving Sesame Street brand and The Furchester Hotel, the new children’s husband Furgus Fuzz, and their daughter Phoebe Furchesterseries featuring the furry friends kids have known for decades. Fuzz. The Furchester family is joined at the hotel by Elmo, Sesame Workshop has partnered with the Produce Marketing Phoebe’s cousin who is on an extended visit, and Cookie Monster, who has landed his dream job as room service Association (PMA) and Partnership for a Healthier America and dining room waiter. Sesame Workshop is (PHA) to promote fresh fruit and vegetable concurrently in development of a comprehensive sumption to kids, making healthier choices a licensing program around this new little easier for families. The agreeseries, which will debut in the fall ment allows PMA’s community on CBeebies. of growers, suppliers, and This year will see a whole new retailers to take advantage of line of Sesame Street toys, including the Sesame Street brand’s Playskool’s Let’s Imagine Elmo, which strength without a licensing fee— was unveiled at the American Internausing iconic characters such as Big tional Toy Fair in February. This 13-inch Bird, Elmo, and Abby Cadabby to Elmo pal comes with three different hats help deliver messages about fresh that unlock different imaginary themes fruits and vegetables. Sesame charand play modes. Kids can place the acters may be on produce in stores The Furchester Hotel characters crown on Elmo’s head to play a game of by this fall.

The Furchester Hotel has begun filming at BBC Children’s home “Prince Elmo Says,” pop on the cowboy hat to learn about numin MediaCityUK, Salford. The Furchester Hotel is about a close-knit bers in the “Countin’ Cowboy” game, or put on the sea captain family of cheerfully incompetent Muppet monsters who own and hat for a fun “Sounds of the Sea” game. Kids can also tickle his operate an “almost” world-class hotel. The proprietors are belly, squeeze his nose, or bounce him for fun reactions.

Cepia Unlocks Pet-tential of The Happy’s

Cepia LLC has introduced The Happy’s plush pets that do tricks for treats, chase balls, and will even break out into a synchronized dance. These motorized toys are unpredictable and seemingly have a mind of their own, resulting in interactions between pet and owner.

The Happy’s hit both store shelves and the airwaves with a national TV campaign this year.

With appeal to both girls and boys, The Happy’s can be trained to perform tricks and make more than 25 silly sounds. Six sweet and silly characters compose the litter, and each has its own unique personality.

There’s Bentley, a Golden Retriever; Sport, a Goldendoodle;

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Chance, a Beagle; Mittens, a white cat; Thunder, who comes with a red Happy Treat bone and bolts across rooms; and Lady, a hot pink cat who pounces and has a blue fish treat.

The Happy’s line also includes play sets, such as the Rockin’ Playground, which utilizes IR technology to signal The Happy’s and make them come running and perform tricks. With the Agility Training Set, kids can teach The Happy’s to go through a tunnel and play on a seesaw. Ride-on accessories that work with all pets, a fashion carrier and scarf for easy carrying, and a deluxe bed and breakfast with five different styles of soft, fluffy beds are also available now.

Summer 2014

Licensing Expo 2014

Character & Entertainment

CBS Consumer Products Beams Up Star Trek Lineup

CBS Consumer Products continues to expand worldwide licensing and merchandising for a diverse slate of TV and film brands.

Last year saw the success of Star Trek, in which theatrical marketing for Star Trek: Into Darkness drove overall Star Trek activity, including sales growth of classic and branded products.

In addition, NCIS has become an e-commerce powerhouse driven by “seen on” products, while CBS Consumer Products enhanced its classic portfolio—The Twilight Zone, Cheers, and Beverly Hills 90210—through the launch of new categories, including online gaming.

CBS Consumer Products has established a strong foundation of successful retail and licensing partnerships. Thinkgeek.com introduced a new line of top-selling Star Trek hoodies, glassware, pajamas, aprons, and bathroom décor, while Her Universe cre-

ated a design competition that appealed directly to a passionate fan base of Star Trek fans. In addition, Ecommerce launched localized Star Trek stores in Germany, the UK, Brazil, and Japan, along with a Dexter-focused store in Brazil. A series of live events were introduced in Korea and Taiwan, while new formats were developed for county fairs in the U.S. CBS Consumer Products will focus on a handful of top licensing initiatives to drive growth this year and beyond, launching merchandising programs for new series Penny Dreadful and Extant, and more established dramas such as Under the Dome, Ray Donovan, and Reign.

The biggest initiative for the company is still yet to come: In 2016, the Star Trek franchise will celebrate its 50th anniversary, which will be supported by robust merchandising, retail, and promotional programs.

DHX Media Flexes Family Favorites

DHX Media’s family entertainment library contains more than 10,000 half hours of children’s TV programming, an extensive app offering, award-winning production studios, and recognized brands. Classic properties for this year include Teletubbies, Yo Gabba Gabba!, and Caillou, which turns 25 next year.

Teletubbies has reached more than 1 billion children to date, and has aired in more than 120 territories in 45 different languages. Yo Gabba Gabba! airs on Nick Jr. in more than 75 million households multiple times per day, and has toys, apparel, DVDs, books, and juice sold throughout the U.S. The brand’s current partners include Simon & Schuster, Nickelodeon Home Entertainment, Jazwares for toys, Ty for Beanies, Vans for shoes, and Volcom for apparel. Its promotional partners include Kia, Ubisoft, Citi, Vita, Coc, Toys for Tots, and Journeys Kids.

Caillou airs on PBS Kids in the U.S., and is available on Sprout Video-on-Demand, Netflix, LeapFrog platforms, and Amazon.

International broadcasters include TIJI France, Yumercak in Turkey, Hop in Israel, Discovery Kids in Latin America, Al Jazeera in the Middle East, ATV in Asia, Rai in Italy, and Super

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RTL in Germany. Caillou also boasts more than 50 merchandise licensees, including master toy partner Imports Dragon, publisher Chouette, and app partner Budge. The brand is represented

by Metropol (Turkey) and CPLG Germany.

New licenses for DHX Media include Ella the Elephant, based on the books written

by Carmela D’Amico and illustrated

by Steven D’Amico, that follow the adventures of a little elephant named Ella.

Ella the Elephant premiered on Disney Channel and Disney Junior in February, and broadcasters worldwide include TVO Canada, Tele-Quebec Canada, Hop! TV Israel, and ABC Australia. Key U.S. partners include Warner Bros. Home Entertainment, which will release a DVD this fall, and Jazwares for toys.

This year, DHX Media will also focus on the longrunning teen franchise Degrassi, Johnny Test, and In the Night Garden.

Calliou

Summer 2014

Aliquantum International Brings Rilakkuma to the U.S.

Warner Bros. Consumer Products Grows Timeless Brands

In support of Warner Bros. Consumer Products’ (WBCP) Batman and The Wizard of Oz brands celebrating their 75th anniversaries this year, WBCP will see global licensing support across a number of categories. Additional properties, including Looney Tunes; Scooby-Doo; Tom and Jerry; The Hobbit Trilogy, with The Hobbit: The Battle of the Five Armies; DC Comics; The Big Bang Theory; and Supernatural also drive WBCP’s licensing, merchandising, and retail businesses.

Global licensing partners for Batman and DC Comics’ pantheon of superheroes include Mattel, Lego, and Rubie’s Costume Co., which are all creating core product.

Animated property Scooby-Doo is slated to produce new content from Warner Bros. Animation with a new series, Be Cool Scooby-Doo!, with licensed products to follow. With Tom and Jerry’s worldwide partnerships, WBCP will offer a fresh take on the original series. Bugs Bunny is also back in Wabbit—A Looney Tunes Production. This new series will be supported by WBCP and its licensing partnerships.

Hobbit fans anticipating The Hobbit: The Battle of the Five Armies can expect a full product rollout from co-master toy partners The Bridge Direct and Vivid Group, among many other licensees.

On the small screen, Warner Bros. Television’s The Big Bang Theory continues to attract a variety of licensees.

As The Wizard of Oz celebrates its 75th anniversary, licensing partners including Mattel, Tonner Doll, and Madame Alexander are set to roll out product this year.

Summer 2014

In 2003, San-X launched Rilakkuma in Japan and saw success with the brand. Now, Aliquantum International brings the three characters—Rilakkuma, Korilakkuma, and Kiiroitori—to the U.S. These three unlikely companions live with a hard-working Tokyo woman named Kaoru. Every day they take on new adventures and find ways to keep themselves occupied while Kaoru is at work. The brand encourages imagination and creativity. There is no right or wrong answer to how one sees Rilakkuma, Korilakkuma, and Kiiroitori. The excitement around the brand stems from having the control to make each Rilakkuma character unique. Rilakkuma has no age limit and resonates with boys and girls alike.

Electrokidz Bring the Beat

WowWee’s Elektrokidz, the first music-inspired characters with hair that dances to the beats of music, will make their International Licensing Expo debut. Inspired by Elektrokidz, an EP of original electronic dance music (EDM), with titles such as “Drop the Beat” and “Every Night,” will be available on iTunes this summer. EDM is one of the fastest-growing segments in cultural and consumer entertainment product spaces. There are multiple opportunities available for this property.

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Licensing Expo 2014

Character & Entertainment

DreamWorks Animation Gets Spooky with B.O.O.

DreamWorks Animation will present a comedy for kids and adults of all ages next summer.

For centuries, The Bureau of Otherworldly Operations (known as B.O.O.) has been the afterlife’s uber-cool, buttoned-up elite organization responsible for policing ghost activity worldwide.

However, the organization will be imperiled by the raging ineptitude of its two newest cadets—Watts (Melissa McCarthy), a gung-ho recruit, and slacker Jackson Moss (Seth Rogen), a horribly incompetent ghost. When the pair discovers a plot to destroy B.O.O. by the agency’s Most Wanted Haunter (Bill Murray), they must use every trick in their arsenal to defeat his powerful ghost army and save Earth from a ghostly fate. The fate of B.O.O. and the humans they protect will be in the hands of Watts and Jackson Moss, who take the super out of supernatural.

Hasbro is signed on as the master toy partner for B.O.O. The toy manufacturer will produce a broad range of products based on the film, including collectible ghosts, action figures, vehicles, play sets, role-play items, plush, and games.

Darren Phillipson, head of toy product design for Dreamworks Animation regarding B.O.O., says Dreamworks took a distinct approach when it came to the toy line for the new film. “We really wanted to bring to life all of the great characters from B.O.O. so that kids can play out many of the key scenes they will see in the

movie,” he says. “At the same time we wanted to offer young boys a way to “B.O.O. up” and catch their very own ghosts!”

Phillipson is confident in Hasbro’s ability to take the film to the next level at retail. “Hasbro is the leading toy manufacturer in the boys’ action category and they bring a level of expertise and innovation that will really help to drive demand for the toy line at retail,” he explains.

The Terminator Is Back, and Looking for New Licensees

Creative Licensing Corp. will accelerate the licensing program for its Terminator movie titles. This year marks important milestones for the franchise’s most popular films, including the 30th anniversary of The Terminator, as well as the 25th anniversary of Terminator 2: Judgment Day. For The Terminator, new products include social media games on Facebook, from Zynga; multiple comic book series, from Dark Horse; and Re-action figures, from Funko. New licensees include Fright Rags for masks and Poeticgem for apparel in Europe. Funky Edit Wholesale will expand its line of contact lenses, NECA will extend its collectibles license, Sudden Impact will further its laser tag attractions license, and Sideshow Collectibles will create

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new high-end collectibles.

New licensees for Terminator 2: Judgment Day include Simba Toys, which will make construction toys in Russia, and Nemesis Now, which will expand its line of accessories in Europe.

Sideshow will make more collectibles, while Microgaming will release its online slot machine game.

Terminator Salvation, which was released five years ago, has new comics from Dark Horse and more collectibles from Sideshow Collectibles on the horizon. Creative Licensing Corp. looks to add new licensees in the food, drink, electronics, and robotics categories. Currently, there are more than 50 active licensees for the Terminator films.

Summer 2014

Property Profile

Getting to Know

E

ntertainment One Licensing (eOne) has broadened the U.S. presence of global preschool sensation Peppa Pig through a series of new licensing partnerships and an increased broadcast schedule.

A top-rated series airing seven days a week on Nick Jr., Peppa Pig follows the adventures of Peppa, a loveable, exuberant little piggy who lives with her brother George, Mummy Pig, and Daddy Pig. The animated program has seen an expanded air time schedule this year, playing six times per weekday and 24 times on the weekends. On the heels of the brand’s broadcast success, eOne has added five new licensing partners in the first quarter of this year, further expanding the brand’s roster of U.S. program partners.

Beginning next year, Jazwares will take the lead as Peppa Pig’s master toy partner and will produce toys for preschoolers across multiple categories, including plush, dolls, play sets, vehicles, and bath toys. The new products will hit shelves in mass and specialty retailers next spring. eOne also announced its expansion in the interactive digital arena through a new partnership with VTech, which will launch a Peppa Pig e-book and a software download for the company’s InnoTab learning tablets.

Additionally, Penwizard has signed on to produce personalized Peppa Pig books, which allow fans to star alongside Peppa in an array of fun adventures featuring each child’s name and likeness.

On the party front, Bakery Crafts will produce Peppa Pig cake top décor, cupcake rings, and edible Icing Art to allow fans to celebrate special occasions with Peppa-themed cakes and desserts. Pioneer Balloon Co. will create a new line of Peppa Pig balloons to help families put the finishing touch on any Peppa-themed party.

“As Peppa Pig’s popularity continues to soar with American audiences, we’ve seen an increase in demand for a wide range of Peppa Pig licensed products,” says Joan Grasso, vice president, eOne Licensing North America. “This is an exciting time for Peppa Pig in the U.S. We

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are looking forward to working with our new and current partners to provide consumers increased access to Peppa Pig toys and gear in current and new retailers, such as Wal-Mart and Amazon.”

In addition to signing new licensing partners, eOne launched several U.S. line extensions for Peppa Pig this year. New items currently available include the Peppa Pig My Birthday Party DVD, the brand’s first U.S. retail-wide national DVD launch, from eOne; Peppa Pig’s Party Time app, from P2 Games; Peppa Pig: The Tooth Fairy, from master publishing partner Scholastic; and Peppa Pig and the Vegetable Garden, from Candlewick Press. Additional toys, books, DVDs, and other items will continue to launch throughout the year, including the new Peppa Pig Tumble & Spin Music Memory Game, from TCG, at mass retailers, and an assortment of ballet-themed toys from Fisher-Price at Toys “R” Us. The property also reaches consumers through cross-promotions, such as a new partnership with the Joy Cone Co., the largest producer of high-quality ice cream cones in the world. To celebrate the launch of the Peppa Pig My Birthday Party DVD, the Joy Cone Co. is featuring an on-pack mail-in offer for a free Peppa Pig Ty Beanie Baby with the purchase of any Peppa Pig DVD and any package of Joy Cone ice cream cones through December.

The brand’s expanded U.S. licensing program is in step with the property’s long-term growth strategy for North America and beyond. Globally, licensing has accelerated at a rapid pace for Peppa Pig in international territories. The brand is now worth $650 million in retail sales worldwide and is one of the leading preschool properties in the UK, Australia, Spain, and Italy. Currently airing in 180 countries, Peppa Pig has licensing programs in more than 50 countries worldwide.

“Peppa Pig has shown strong momentum in 2014,” says Grasso. As we continue to support the brand’s organic growth, we are very excited about our potential for future success within the U.S. territory.”

••••

Summer 2014

Scholastic

P2 Games

In Peppa Pig: Ballet Lesson, from Scholastic, Peppa goes to her first ballet lesson, where she learns a graceful dance routine. When Peppa decides to teach Mummy Pig and Daddy Pig how to dance, she finds out they might just have some dance moves of their own.

This book will be available nationwide in September.

Featuring characters, music, and sound effects from the show, Peppa Pig’s Party Time app, from P2 Games, includes seven partythemed games and activities designed for preschoolers. Kids can help Peppa plan her celebration, and the app includes a bonus digital sticker book. Compatible with iOS and Android devices, the app includes single- and multi-player content and features touchscreen interaction, intuitive game play, music, and sound effects.

Fisher-Price

eOne

Things are headed up in the new Peppa Pig DVD release, Peppa Pig: The Balloon Ride, from eOne, available at retail stores nationwide in August. The DVD features 10 episodes filled with wholesome family entertainment and gentle humor for preschoolers and parents to enjoy. The DVD is filled with lots of fun adventures, such as a hot air balloon ride, a visit to the museum, a bicycle race, and jumping in muddy puddles.

TCG

The Peppa Pig Tumble & Spin Game, from TCG, is an electronic memory game with a twist.

Featuring Peppa’s theme music and voice from the animated show, kids spin the Peppa Pig figurine and listen carefully to her instructions. The aim of the game is to be the first player to collect all six cards featuring Peppa’s friends. The game is designed for up to four players ages 3 and up.

Peppa Pig Hug ’n Oink Peppa, from Fisher-Price, loves to be hugged. Kids ages 3 and up can give this plush doll a squeeze and she’ll giggle, talk, and snort—or keep hugging her to hear more laughter, snorting, and a melody.

Peppa Pig Bedtime Peppa is ready for bed. She sings lullaby songs, oinks, and plays a counting sheep game. In the laying position, Peppa’s cheeks glow as she falls asleep.

The Peppa Pig Peek ’n Surprise Playhouse, from Fisher-Price, is a portable, four-room playhouse that opens to reveal a home filled with transforming furniture. Kids ages 3 and up can switch the sink from messy to clean, fill the tub for a bubble bath, set the family table for dinner time, and more. The playhouse includes more than 15 play pieces and folds closed for easy clean up. Peppa and George figures are included.

Hug ’n Oink Peppa

Peek ’n Surprise Playhouse

Summer 2014

The Licensing Book • 81

Hot Shots

Don’t Be Dumb—Be Cute, Quirky, and Effective Travis Rutherford, vice president of Evolution, discusses what’s next for Dumb Ways to Die, an exciting new PSA property.

Why is the Dumb Ways to Die (DWTD) property so unique in today’s licensing industry?

The intellectual property (IP) originally came from a public service announcement created for Metro Trains Melbourne (MTM) to promote train safety to tweens and teens. It spawned a global frenzy, becoming characters that young people wanted to engage with and share socially.

The original video went viral, having more than 25 million views in less than two weeks. The DWTD YouTube channel now has nearly 100 million views and the ad campaign has won some of the most prestigious advertising awards, including seven Webbys. The song, which is the heart of the brand, became a top single on iTunes. The existing app remains a top ranked title worldwide.

We are now turning DWTD into a sustainable global character brand.

What is your vision for where the brand goes from here?

DWTD will become a major champion of safety. We just completed a strategic promotional partnership with Empire Life Insurance in Canada for the use of the IP to promote life insurance services.

Branded entertainment is at the heart of everything.

The Valentine’s Day video generated more than 10 million views in seven days, becoming one of the most watched videos on YouTube in the first quarter of 2014.

We will begin releasing branded entertainment to build upon the existing audience. In the fourth quarter of this year the highly anticipated second DWTD app

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will premiere globally—localized in all key foreign languages. This new app will have much deeper gameplay and in-app purchases, and will remain true to the original cute and macabre experience.

Does MTM have any plans to globalize the original train safety campaign?

MTM is finalizing partnerships in key territories with other train operators for use of the original DWTD campaign. This will include the U.S., the UK, Europe, and other key markets such as Hong Kong. We see this as a game changer for supporting a consumer products licensing program as consumers will constantly interact with the characters in their daily lives on a localized level. This global rollout will bring millions of impressions to the markets in a totally new, never-before-seen way to support a character licensing program.

What licensed categories do you have now, and in what categories are you looking to secure new deals at the upcoming Licensing Expo?

It’s different market to market, but we already have the core novelty plush, figures, and key chains from Commonwealth Toy in the U.S. Underground Toys in the UK is finalizing a new deal in the U.S. for young men’s, juniors’, girls’, and boys’ apparel. Branded emoticons from Textpride will be distributed on social networking sites Line and Kik; annuals will come from Pedigree; and posters from GB Eye and Impact Posters.

We are now closing partnerships in headwear, coldweather accessories, bags and backpacks, and stationery, while also seeking new partnerships at Licensing Expo.

••••

Summer 2014

PLUSH

Commonwealth Toy and Novelty (CWT) has produced an endearing line of Dumb Ways to Die plush in various sizes, including 3.5-inch plush backpack clips, and 5-, 8-, and 16-inch musical plush. The first wave, including dancing feature plush, will be available at specialty retailers, including Hot Topic and f.y.e. Wave two will include mini figures in blind bags, 2.5-inch figures in a Lucite box, 4-inch roto-casted figures, a figural key chain assortment, and a thermoplastic rubber squeeze figure assortment. Underground Toys is distributing the CWT plush line in the UK along with additional items such as travel passes, air fresheners, bookmarks, lanyards, and wind-up mini-figures. Licensing Essentials will distribute the CWT plush in Australia and New Zealand, with additional items such as show bags, paper goods, drinkware, can coolers, lunch bags, and key chains.

NOVELTIES

GB Eye has licensed DWTD for posters, wall art, pin badges, tattoos, magnets, slap bracelets, and ceramic mugs in the UK. Impact Posters will carry a range of posters and calendars in Australia and New Zeland, while Pedigree Books has a 2015 Activity Annual in development, which will be released in August.

APPAREL

DWTD is in the final stages of confirming the new U.S. apparel partner for the brand. It will include fashion tops and T-shirts for tweens and teens, available at specialty retailers in the fourth quarter of this year. The irreverent style of the characters, along with smart editorial, is expected to be a success for the frachise. A full assortment of apparel will be available on the DWTD ecommerce store, which will launch this fall.

Summer 2014

INSURANCE PARTNERSHIP

Canadian-based Empire Life Insurance Company has become one of the first strategic partners for the brand. Empire Life will deploy a nationwide consumer facing advertising campaign to educate young adults that it is a Dumb Way to Die without life insurance.

The campaign will launch this summer with media support on TV, radio, the Internet, social networking sites, and direct mail.

GLOBAL SAFETY CAMPAIGN

In the fourth quarter of this year, MTM—along with other train operators around the world—will launch a global safety campaign using DWTD and its characters to educate consumers about train safety. This will be localized by territory and will address safety concerns specific to each region and country.

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Licensing Expo 2014

Character & Entertainment

Fred Rogers Co. Brings Daniel Tiger into Publishing

An expansive library of Daniel Tiger’s Neighborhood books is headed to major retailers nationwide this year. Simon & Schuster Children’s Publishing, master publishing licensee for the TV series from The Fred Rogers Co. airing daily on PBS Kids, will introduce 10 new titles in a range of different styles under its Simon Spotlight imprint. These additions will bring the total number of books for this year to 15.

The first five books debuted in January at stores nationwide as part of the brand’s initial product launch. Four Daniel Tiger’s Neighborhood books will

be released this summer with six additional books to follow in the fall.

The Daniel Tiger’s Neighborhood library of books will grow to include board books with flaps and novelty board books with sound. The latest offerings round out the collection, which also features shaped board books, including one trolley-shaped version with wheels; tabbed board books; 8- by 8-inch paperback storybooks; Ready-to-Read beginning readers; and deluxe storybooks. The titles focus on first experiences in preschoolers’ lives—from going to school to visiting the doctor and learning how (and when) to use the potty—along with seasonal themes such as Halloween and wintertime fun.

Master toy licensee Jakks Pacific will extend its product lineup into additional categories and roll out to additional retailers.

This year also marks the introduction of Daniel Tiger’s Neighborhood merchandise in Canada. Among the new licensed products making their debut this year are costumes from Disguise and additional offerings from University Games, including a Colorforms Deluxe Playset, puzzles, and games.

Hexbug Launches Transformers Hexbugs, Licensed Lineup

Hexbug has forged several new licensing partnerships for movie Hexbug has also partnered with toy, game, and puzzle mantoys, board games, and licensed apparel and accessories. Hexbug ufacturer Ravensburger for the Bugs in the Kitchen board game. has partnered with Hasbro for Hexbug Warriors Transformers, Easy to play, this game for kids comes with a Hexbug Nano that the ultimate battling bots in the age-old conflict between the skitters around the game board. Kids roll the die to find out Autobots and the Decepticons. These battery-powered colwhich tool—knife, fork, or spoon—they can use to herd the lectible micro-robots come with interchangeable Nano bug into a trap. When kids trap a bug, they get a armor and weapons and intelligent token. The first player to get five battle sensors that register damage tokens wins. as they fight. There are six unique The Hexbug brand will come characters, plus battle arenas and to kids’ apparel this year through battle stadiums for kids to collect. a partnership with Bioworld. The Hexbug Nano Transformers are company will produce Hexbugenergetic, battery-operated robotic branded T-shirts and sleepwear for bugs that skitter along and are kids at select retailers nationwide. ready for battle. Each Hexbug Nano Through a recent partnership Hexbug Warriors Transformer comes with transwith Crocs, kids will now be able to Transformers Battle Stadium sport their affinity for Hexbugs with formable clip-on armor backpacks buggy Jibbitz, which are decorative shoe charms that fit inspired by Transformers characters, including Optimus Prime and Bumblebee. Kids can swap out the armor combina- into the holes of Crocs. The line will include larva, scarabs, and Nano V2 bugs. tions for epic Transformers action.

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Summer 2014

Licensing Expo 2014

Character & Entertainment

Lawless Looks to Sign Major Licensees

Lawless Entertainment seeks licensees across multiple platforms for its major brands, including Bug Rangers, Suzy’s Zoo, Olive the Ostrich, Nutri Ventures, and Elaine Ryan.

Bug Rangers, a TV series about being bug-sized in a humansized world, has a worldwide distribution and co-production deal with Mondo TV for a new 3-D CGI-animated TV series based on the property, scheduled to debut for distribution at MipJunior in Cannes this fall. Bug Rangers seeks licensees across publishing, games, toys, apparel, and back-to-school accessories.

Best known for its colorful, friendly animal characters, evergreen property Suzy’s Zoo has signed deals with Pico Candy for digital stickers, Iron Guy for limitededition artwork, and High Point Balloons for balloons. Additionally, Dina Asia Pacific Company Ltd. will represent the brand in China, while The Agency will represent the brand in France and Benelux. Suzy’s Zoo seeks plush, toy, apparel, and diaper licensees.

Olive the Ostrich, currently airing in the U.S., Australia, Denmark, the UK, Sweden, Germany, Austria, Benelux, France, Poland, Canada, and Israel, is a show about an ostrich with a huge imagination. The brand seeks apparel, school accessories, art supplies, plush, and toys and games licensees.

Entertainment brand Nutri Ventures has signed an agreement with Partnership for a Healthier America to bring Nutri Ventures: The Quest for the 7 Kingdoms to U.S. public schools nationwide for free. These 60,000 elementary schools will have free access to the 29 episodes from Nutri Ventures’ first three seasons, along with more than 200 additional pieces of educational material produced by Nutri Ventures Corp. Nutri Ventures looks to sign licensees for school accessories, apparel, toys, and more.

86 • The Licensing Book

Big Tent Teams Domo Up with Ghostbusters

Domo is a mascot for the millennial generation, spurred by a massive social media following and fans worldwide. Following on the success of last year’s co-branding effort with DC Comics, Big Tent Entertainment (BTE) will join the Ghostbusters team in celebration of the brand’s 30th anniversary this spring. H&M will showcase Domo on T-shirts worldwide at retail, giving the character its widest reach to date. With more than 1.5 million YouTube videos, 1 million Flickr photos, and 400,000 Instagram photos, Domo retains his spot as one of the most social brands in the world.

NBCUniversal’s The Biggest Loser franchise continues to dominate the health and wellness category following the recently concluded 15th season, which delivered its biggest overall audience in two years. Its licensing program brings the brand to life through experiential events and locations, including The Biggest Loser resorts, new Biggest Loser-branded RunWalk events, and the debut of the inaugural Biggest Loser Bootcamp, featuring the show’s trainer, Dolvett Quince. The eight-week program provides users with new daily workouts each day of the course, instructional and motivational training with Quince and other experts, and a chance to interact with past contestants from The Biggest Loser.

The Biggest Loser also continues to expand in the food category with healthy options for consumers, including branded fruits and vegetables from Duda and Grimmway Farms, flavored popcorn from Popcorn Indiana (FITPOP), and a line of fresh salads, fresh and frozen entrees, and fruit and veggie snacks from Five Star Gourmet Foods. The show will also launch branded kitchen products this year from Kind Kitchen.

Summer 2014

The Wiggles Brand Re-Launches with New Cast Members

The Wiggles brand re-launches with three new cast members—Emma, Simon, and Lachy—and original Wiggle Anthony focused on rebuilding its fans and embracing a new group of fans as well. The first female Wiggle, Emma, attracts a bowwearing Mini-Emma Army. With more than 100 sold out shows in Australia and New Zealand, The Wiggles have plans for a U.S. and Canadian Tour in September.

The Wiggles series Ready, Steady, Wiggle airs daily on Sprout in the U.S., on Treehouse in Canada, and on ABC in Australia and New Zealand.

Fifty-two new episodes have been shot and are being delivered. Content deals in other territories are currently being negotiated as well.

With a master toy partner, quarterly and seasonal DVD and CD releases, a number of new licensees, a radio show on Sirius XM, and many new projects in the works, The Wiggles and their partners are expecting growth with these new projects. Brandberry currently represents the brand.

Summer 2014

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A Look Inside

Paramount Gears Up for the

Next Big Thing

On May 29, 2015, Paramount Animation (a division of Paramount Pictures) will unleash Monster Trucks in theaters. From director Chris Wedge (Ice Age and Epic), and producer Mary Parent (Godzilla and Pacific Rim), Monster Trucks is an original story that will utilize a combination of live-action and CGI animation. The Licensing Book sat down with LeeAnne Stables, president of consumer products and head of Paramount’s marketing partnerships team, to find out more.

Tell me about Monster Trucks. What is the project’s background?

Monster Trucks is a big summer popcorn film with lots of action, fun, and excitement. The movie is based on an idea that originated with Paramount Film Group President Adam Goodman. We have assembled an amazing creative team and are very excited about launching another new Paramount film franchise.

What is your licensing and corporate partner strategy for Monster Trucks?

This a film that appeals to everyone who loves a movie with heart, big action sequences, strong characters, a great story, and is just a lot of fun. We will take our tried-and-true approach of seeking quality marketing partners and strong licensees who will produce quality products themed to the film.

What types of marketing initiatives will be developed to drive consumer interest?

We have lined up some amazing consumer products and promotions partners and will be doing more deals at Licensing Expo. No doubt our Monster Trucks campaign will be firing on all cylinders next summer with a big television presence, digital initiatives, and retail activation when the film releases.

88 • The Licensing Book

What categories are you focusing on for consumer products and marketing partnerships?

For the consumer products program our focus is on a well-rounded lineup of key categories, including toys, publishing, interactive, and apparel/accessories. For corporate marketing partnerships, the film offered us many opportunities to involve vehicles and major brands targeting all demographics. That’s where we started and we have been building out both strategic initiatives from there.

What elements will make this property stand out?

Vehicles are always a huge hit with kids and adults and these vehicles in particular will really stand out amongst next year’s summer movie lineup. Our distinctive designs coupled with amazing product innovation will really prove to differentiate Monster Trucks from other properties at retail.

What are the long-term plans for the property?

This is one of many new projects that the team at Paramount Animation has developed, and we see Monster Trucks representing an investment in a new franchise for the studio. We plan on building this brand with a strategy that leverages the movie’s incredible strengths to create a property that will thrive in the marketplace between film releases.

••••

Summer 2014

International box office superstar Tom Cruise returns as Ethan Hunt in Mission: Impossible 5, in theaters December 25, 2015.

Franchise Facts:

• The Mission: Impossible film series has grossed $2 billion in worldwide box office.

• Mission: Impossible Ghost Protocol was the most successful release in the series, with $700 million in worldwide box office and a 93 percent Rotten Tomatoes rating.

• Tom Cruise has a combined $6 billion in box office, 6.3 million Facebook fans, and 4 million followers on Twitter and counting.

First in a stand-alone trilogy, Terminator hits theaters July 1, 2015.

Franchise Facts:

• The series of films has earned $1.5 billion at the worldwide box office.

• The series has garnered six Academy Award nominations and four wins.

• The brand has 98 percent awareness with consumers.

• Terminator products have achieved revenue of $1 billion worldwide.

Paramount Animation Paramount Pictures’ animation division is hitting the big screen. The animated film slate kicks off with The SpongeBob Movie: Sponge Out of Water, splashing into theaters February 13, 2015. SpongeBob returns to the big screen for an all-new adventure, now in 3-D. Also coming soon is The Little Prince, based on the beloved book that has sold more than 145 million copies worldwide.

Classics 10th Anniversary

20th Anniversary Summer 2014

The Licensing Book • 89

LeT FreedoM RidE Property Profile

extended sons of anarchy lineup provides new ways to

“Sons of Anarchy is truly a lifestyle brand phenomenon in the marketplace today, with more than 50 widely successful licensee partnerships launched since 2010. Demand for the merchandise has grown outside of the U.S. to Canada, Australia, New Zealand, the UK, Germany, and across Europe. From inception to the culmination of 2012, Sons of Anarchy sales were close to 500 percent in retail dollars, which is a testimony to the authentic and high-quality merchandise we are sharing with fans. Men’s and women’s biker jackets have tripled in product offerings, and jewelry has doubled lines due to the strength of retailers nationwide. The seventh and final season will premiere this September, and the Fox Consumer Products team will unveil 10 additional licensing lines this year from fine art to fine wine.”

— Roz Nowicki, executive vice president, global sales and retail, Fox Consumer Products, Twentieth Century Fox Entertainment

Inside the SoA club

e “When I did the original pilot, I had hair. I only had like one tattoo. I was way more of a computer geek. I was this guy who was just always on his computer, drinking Jolt cola, kind of like the nerd of the group.”

—Theo Rossi (Juan Carlos “Juice” Ortiz) Katey Sagal as Gemma Teller Morrow

and Jimmy Smits as Nero Padilla e “I always imagined that if Tara were to die it would be by Gemma’s hand.

Partly it’s a Hamlet thing. Gertrude doesn’t kill Ophelia, but she’s the one who bears witness to her death, so I always imagined that they would be in it together somehow. You know Gemma is an extraordinarily volatile character—the most volatile character in the entire series, I think ... the sort of dance that Tara and Gemma did with each other for all those years really had at its foundation something dangerous.”

—Maggie Siff (Dr. Tara Knowles-Teller)

“One of the big things for me was proving that I could play an American because, being English, that’s obviously a big question, particularly in a world like Sons of Anarchy, which is so Americana.

I would recite Shakespeare speeches, particularly for Hamlet as that’s one of my favorite of his plays.”

—Charlie Hunnam (Jackson “Jax” Teller)

e

Charlie Hunnam as Jax Teller

90 • The Licensing Book

Source: Sons of Anarchy:The Official Collector’s Edition, the only complete guide to the series, including the much-anticipated final season, coming in December, from Time Home Entertainment.

Summer 2014

Dartworld

Made of U.S. Western pine with custom medium-density fibreboard front doors, Dartworld’s Sons of Anarchy dartboard cabinet also features matching silver self-adjusting hinges that complement the sleek, black, painted finish with the iconic Sons of Anarchy Reaper. The dartboard cabinet also contains a custom Sons of Anarchy dry-erase scoreboard and an out-chart. Sons of Anarchy steel and soft tip brass darts are also available.

Sons of Anarchy poker set Dartworld’s Sons of Anarchy poker set comes complete with 200 Sons of Anarchy poker chips and a matching deck of Sons of Anarchy playing cards. The set is laser engraved with gold fill on the front of the case. The Sons of Anarachy chips are printed with silver foil and are custom made in the U.S. All sets are numbered 1 to 500.

Sons of Anarchy dartboard

Spencer’s

Spencer’s has partnered with Twentieth Century Fox Consumer Products to transform its stores nationwide into Sons of Anarchy merchandise clubhouses. Fans will able to purchase new gear in anticipation of the sixth season’s premiere on September 10 on FX. Spencer’s will carry apparel, jewelry, hats, drinkware, loungewear, backpacks, toddler T-shirts, wallets, and more, reflecting the biker lifestyle true to Charming, Calif. Spencer’s will host an online sweepstakes that will offer entrants the chance to win an authentic Sons of Anarchy prize pack. Spencer’s will support the program in-store through branded boutiques that feature window displays, digital signage, and in-store elements that offer an immersive shopping experience.

Sons of Anarchy wallets

Boom! Studios

Twentieth Century Fox Consumer Products has teamed up with Boom!

Studios to launch the first Sons of Anarchy comic book series. As a modern vision of the outlaw genre of comics, the series will bring the gun-smuggling outlaw bikers with complex pasts to the printed page. The creative team behind the Boom! Studios comic book series includes writer Christopher Golden, artist Damian Couceiro, and cover artist Garry Brown. The first issue will launch in comic shops nationwide on September 11.

Black Crown

Carefully crafted with a stunning, extra-fermented Ecuadorian Oscuro wrapper and generously filled with an aged, Cuban-seed blend of long-fillers from Nicaragua, these cigars, in partnership with Black Crown, contain a rich, medium to full-bodied blend delivering a big, booming profile. Loaded with notes of wood, leather, sweetness, spice, and hearty tobacco notes, each silkysmooth puff coats the palate perfectly and finishes clean. It’s got just enough power to keep it interesting without being overwhelming.

Summer 2014

The Licensing Book • 91

Corporate Corner

Beanstalk

Tinderbox Las Vegas News Update

Tinderbox, the digital division of leading global brand extension agency Beanstalk, is dedicated to working with digital brands to realize their potential in the world of consumer products.

The division was developed in June 2013 to address the market need for a brand licensing agency with expertise in extending digital properties. It partners with brands at any stage in their life cycle, whether emerging or established, to get them ready and activate their brand through licensing.

Tinderbox recently partnered with fellow digital specialist agency 5th Wave Brands to develop a consumer products program for the award-winning action adventure game, Badland. Tinderbox will support 5th Wave Brands in pursuing global licensing opportunities for Badland and will focus on building the program in the UK. Tinderbox also represents the hit mobile gaming app Doodle Jump in the UK. The agency recently brought the property together with arcade games and toy manufacturer Sega Amusements for the global production and distribution of a range of Doodle Jump plush toys.

Tinderbox has also helped coordinate an agreement between world-building game sensation My Singing Monsters and master publishing house Egmont for a range of magazines, handbooks, sticker books, and sound books, as well as digital applications available through Android Market and Apple’s App Store. Additionally, Tinderbox represents the immensely popular tween social network MovieStarPlanet, as well as brand new mobile game property The Beetnuks, which is currently being developed by BlooBuzz, a subsidiary of Québecor Média Inc. ••••

92 • The Licensing Book

Beanstalk Launches International Consulting Division, Blueprint—Powered by Beanstalk

Beanstalk has officially launched Blueprint—Powered by Beanstalk, a new consulting division dedicated to advising companies on how to evolve their brands through innovative and commercially viable brand development and extension strategies.

Blueprint will work with brand owners, retailers, and manufacturers to evaluate and analyze their distinct needs and provide a road map to open doors to new markets, audiences, and sources of revenue.

Practice areas include brand extension and retail development, research and insights, design and identity, and operations and governance. Beanstalk has a history of providing many of these services to its clients, and has expanded to formalize these specialized offerings to help companies achieve their strategic objectives.

The newly formed division will be led by Nicole Desir, who has been promoted to the position of executive director of Blueprint. A 12-year veteran of the agency, Desir will expand on her role as vice president of brand management by spearheading the global implementation of this division at Beanstalk.

In an increasingly competitive marketplace, brand evolution and innovation are the key sources of growth and profitability. Len Schlesinger, Baker Foundation Professor, Harvard Business School and Omnicom University faculty member, says, “Today’s consumer environment has changed radically. New technologies, products, and services have emerged that were unthinkable just a few years ago. In the midst of all of this transformation are the brands that have historically served as the shorthand barometers of quality, efficacy, and status in the past. How will they evolve and extend in the new world? The answers are strikingly unclear, and an era of experimentation, extension, and transition is here. Those who choose to ignore the signals of change are certain to pay a price.”

Nicole Desir, executive director of Blueprint, says, “To be successful today, companies need to do more than just tread water, they need to continually disrupt the market or risk becoming irrelevant. Brand extension through licensing is a low-cost and low-risk strategy for innovation incubation and disruptive growth. By formally establishing Blueprint, we are responding to a market need for the unique perspective we are able to offer, based upon our reputation and expertise as brand extension strategists and activators.”

Allison Ames, president of Beanstalk, says, “With an increasing amount of information instantly available to consumers about brands, companies must be smarter about how they reach and speak to consumers. Brand extension and development strategies need to be well-planned to satisfy consumers’ expectations. Building on our years of successful execution experience, Beanstalk’s Blueprint is credibly and uniquely positioned to provide clients with our knowledge and insights.”

••••

Summer 2014

Corporate Corner

Beanstalk

HGTV HOME

HGTV’s award-winning consumer products brand HGTV HOME provides consumers with a branded collection of smart and stylish products from the experts at HGTV. HGTV HOME has developed an established point-of-difference in the market, built on three pillars: updated, trendright aesthetics; consumer education; and the power and trusted voice of the HGTV network. HGTV HOME currently has 10 program partners, 12 product lines on the market, and cumulative brand placement in more than 7,000 stores. The HGTV HOME product assortment now includes HGTV HOME by Sherwin-Williams paint, wallpaper, and paint accessories; HGTV HOME Furniture Collection; HGTV HOME Design Studio only at Bassett; HGTV HOME Flooring by Shaw; HGTV HOME Plant Collection; HGTV HOME Indoor Lighting; HGTV HOME Outdoor Living only at HSN; HGTV HOME Solar Lighting; HGTV HOME Decorative Fabric and Trim; HGTV HOME Baby Furniture; and HGTV HOME Sleep Collection.

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 five categories—skincare, cosmetics, hair care, body care, and nails—the brand has continued its evolution in beauty. The Nuance line continues to grow, with new items added, including a hair care platform designed specifically for curls and waves and facial products that are constructed to enhance mature skin.

Hayek continues to promote her line with appearances on Ellen, The Rachael Ray Show, and numerous features in major beauty publications such as InStyle and New Beauty.

94 • The Licensing Book

Fender

Leading American music lifestyle brand, Fender, will expand its licensing footprint in Europe.

Fender has defined the signature sound of modern music since 1946. Its products, including the Stratocaster and Telecaster electric guitars and the pioneering Precision and Jazz basses, have touched and transformed music worldwide in nearly every genre. The popularity of the brand has transcended sales of instruments to musicians and has led to a successful lifestyle licensing program that includes dozens of world-class partners, including Volkswagen, Panasonic, and Uniqlo.

Beanstalk will work with Fender to leverage its iconic identity as the pioneer of all things music, including the rock ‘n’ roll revolution, to high-quality, music-centric products that reflect consumers’ passion for both music and the Fender brand.

HSN

Beanstalk continues to work with direct-response TV retailer HSN on a number of exciting initiatives. Blogging duo Bag Snob has partnered with contemporary handbag manufacturer Artisan House to debut its Snob Essentials handbag collection exclusively on HSN beginning May 15 through the end of July. Designed by renowned bloggers Tina Craig and Kelly Cook, the Snob Essentials line offers frugal fashionistas affordable, fashionable, and functional handbags for every occasion and lifestyle.

Carmindy, an American makeup artist best known for her transformational makeovers on the 10-season run of TLC’s What Not to Wear, has inspired women to embrace and enhance their natural beauty.

Building on her philosophy, Carmindy launched a cosmetics brand in February called Carmindy & Co., which is sold exclusively on HSN. HGTV has partnered with HSN for HGTV HOME Outdoor Living, which includes both branded and endorsed products across multiple lawn and garden categories for the second year.

Summer 2014

Corporate Corner

Beanstalk

P&G

New P&G licensed products have recently launched under the Febreze, Mr. Clean, and Gain brands. Most products are distributed to similar retail customers as P&G core products in the food, drug, mass, and dollar channels of distribution. In some cases, distribution of P&G brands expands into specialty stores or department stores. The Febreze brand has extended into home goods, such as pillows and mattress pads, home décor candles, carpet powders, deep cleaning machine solutions, and spot/stain sprays. The program continues to be successfully supported by leading manufacturers such as Bissell, Helen of Troy, Springs Global, and MVP. Mr. Clean licensee, Butler Home Products, launched a new product in the Magic Eraser family, the Mr. Clean Magic Eraser Toilet Bowl Scrubber. Butler also launched a Mr. Clean Toilet Bowl Brush & Caddy Set utilizing a Febreze Set & Refresh refill. In addition, Butler Home Products introduced the first Gain licensed products with a line of Gain dish cleaning tools, and Bissell expanded its line of Febreze Carpet Deodorizing Powders with a Febreze with Gain Carpet Powder deodorizing SKU.

U.S. Army

The U.S. Army is the largest U.S. military service branch and is made up of the best trained, and most dedicated and respected soldiers in the world. The Army’s trademark licensing program is comprised of more than 265 licensees across more than 100 different product categories. Some of the more recent licensees include Alex & Ani and Origami Owl with successful jewelry and accessory collections. New licensee, The Coleman Co., will introduce a co-branded line of camping and outdoor products, and partner Venture Products will extend the brand into the fitness category with a line of fitness equipment and accessories. The U.S. Army seeks partners in a number of categories, including party supplies, raingear, back-to-school accessories, and digital and app-based technologies.

96 • The Licensing Book

Stanley Black & Decker

With more than 70 licensees worldwide, the Stanley Black & Decker (SBD) licensing program is one of the most comprehensive and successful in the construction/do-it-yourself and home improvement industry. SBD’s portfolio of brands includes BLACK+DECKER, BOSTITCH, DEWALT, PORTER-CABLE, and STANLEY. The program covers more than 37 categories, with channel presence ranging from industrial and home improvement stores to mass market retailers and DRTV, totaling more than 90,000 doors. New licensees across a host of categories have recently been added to the program, including anti-fatigue mats, paintapplication tools, publishing, and work wear apparel. Licensed products are seamless extensions of SBD’s core offering and provide the same highquality standards with functional and appealing designs that effectively and creatively meet consumer needs.

Licensees have successfully opened up new aisles, categories, and channels for the brand, and product innovation continues to be one of the hallmarks of the program.

Summer 2014

Corporate Corner

got milk?

Beanstalk

got milk? brings its 20-year-old campaign to life this summer with a new range of consumer products. got milk? snacks and cereals will launch at select retailers across the U.S., as well as in key international markets, providing consumers with an assortment of foods that are traditionally enjoyed with a cold glass of milk. The line will include cookies, snacks, cereals, and granola bars that are targeted to consumers of all ages in an effort to increase milk consumption. In addition, got milk? will make drinking milk even more fun with a full range of flavormodifying items, including flavored straws, powders, liquid drops, and syrups. The brand is seeking licensees across drinkware, infant, gift and novelty, publishing, and appliance categories.

Wilton

Founded in 1929, Wilton is the leading food crafting company in the industry and the No. 1 cake decorating and bakeware brand. Its high-quality and easy-to-use products inspire consumers to be creative, while allowing them to achieve professional results.

Wilton has leveraged its status as a leading sweet treat-making and bakeware brand to food and housewares products that are strategically aligned with its core equities.

With marquee licensees such as Publications International Ltd. for cookbooks and Pinnacle Foods for the Duncan Hines/Wilton cake mix, Wilton’s licensing program provides creative solutions for consumers across the mass, specialty, grocery, and club channels. The Wilton brand will further extend into food categories such as baking mixes, refrigerated dough, baked goods, baking chocolate, candy inclusions, nuts, pastry shells, and more.

Housewares categories will range from small appliances to bakeware and serveware that will complement existing core products.

Pennzoil

Pennzoil, the No. 1 motor oil brand in the U.S. with global reach across 60 countries, continues to extend into products that are consistent with its core equities of innovation, quality, performance, and durability. The leading brand is supported by a multi-million-dollar advertising and promotional budget annually, and its licensing program consists of best-in-class licensees. Custom Accessories—one of the program’s oldest partners—has oil and lubrication products and tools, while Navajo has electrical-related and sealing goods, among others. With various product launches last year, both licensees continue to perform very well and expand distribution to mass retailers, specialty and auto stores, home centers, and clubs across the U.S. and Canada.

On the collectible side, New Ray Toys, GreenLight Toys, and Hobbico have secured placement for their diecast vehicles and vintage replicas in a variety of retail locations, including specialty automotive stores, mass merchant retailers, and collectible venues. The products 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.

Brisco Apparel is Pennzoil’s apparel licensee that distributes predominantly to travel centers and automotive stores, and the brand has recently renewed licensee Open Road Brands for its vintage-inspired collection of wall art, signage, and containers at retail. Pennzoil currently seeks partners in multiple categories, including degreasers, hand cleaners, oil change accessories, pressure kits, shop towels, batteries, electrical and lighting, cooling and heating system parts, engine and diagnostic tools, creepers, mechanics seats, and lifting equipment.

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Summer 2014

Beanstalk

Energizer

For more than 100 years, Energizer has powered people’s lives by creating new and innovative products. The licensing program aptly extends the company’s core initiatives by engaging consumers through high-quality, reliable, and responsible products that anticipate their needs. The program continues to thrive with the addition of several new licensees and the expansion of several existing agreements. One of the company’s newest licensees, Alpan, recently made a splash at the National Hardware Show by announcing its partnership with Energizer for solarpowered landscape and outdoor lighting solutions. Several other new partners will launch in European markets in the coming months.

Additionally, the company’s existing licensees continue to see success and expansion across the globe.

Mobile accessories continue to be a strong category for the company’s brands, with growing sales and new placements from long-time partners Avenir Telecom, Performance Designed Products, XPal, and Premier Accessories Group. In addition, Bower Inc. continues to grow the Energizer line of photographic accessories. Building on its achievements in portable lighting, the company has partnered with Liown for a line of licensed household lighting products, including nightlights and flameless wax candles, which can be found in Target, Kroger, and other retailers across the U.S. Lastly, the company’s longstanding licensee, Johnson Controls, is expanding its program of automotive, marine, and specialty vehicle batteries to new markets and retailers.

The future is bright for the Energizer licensing program. With two strong and distinctive global brands that reach differing consumer segments (Energizer and Eveready), the company continues to aggressively grow its program worldwide through adjacent and exciting product categories.

Summer 2014

TGI Fridays

For almost 50 years, TGI Fridays has been the destination for high-quality food and drinks and an atmosphere that always feels like happy hour on a Friday afternoon. Today, Fridays is refreshing America’s original bar and grill by dramatically redesigning its restaurants, menus, and licensed retail food products. In the new TGI Fridays, a glistening bar will welcome customers as the focal point of the restaurant, and the revamped menu features indulgent Fridays favorites, new mouth-watering handcrafted fresh food, and great drinks.

For more than a decade, the TGI Fridays brand has enjoyed success at retail with long-standing licensees HJ Heinz for frozen snacks and Inventure Foods for salty snacks. The iconic Fridays logo resonates with consumers as a billboard in the freezer case and a continual temptation in the salty snacks aisle. Now the licensing program is positioned for growth this year with several new product introductions, including popcorn, corn snacks, snack mixes and tortilla chips, as well as fresh soups, sides, and sauces. In addition to focusing on the domestic market, the licensing program will expand internationally to reflect the global appeal of the brand.

The continuous success of the TGI Fridays’ licensing program has opened the door for extension into new food and beverage categories, such as frozen desserts and ice cream, non-alcoholic drink mixes, smoothies, and dips such as salsa and queso. In addition to food and beverages, Fridays’ brand equities of fun and socializing are perfect for leveraging into barware, serveware, and novelty small appliances.

Summer 2014

The Licensing Book • 101

Licensing Expo 2014

Corporate Brands

The Copyrights Group Expands Properties

The Snowman

The Copyrights Group will see multiple property expansions this year. A new Paddington live-action and CGI-animated family film will launch on November 28 in the UK and will roll out worldwide in December. Cast members include Nicole Kidman, Colin Firth, Hugh Bonneville, Sally Hawkins, Julie Walters, Peter Capaldi, and Jim Broadbent. The Weinstein Co. will distribute the movie in the U.S. in December, with the DVD set to launch internationally next spring. There will also be a number of new product launches, as well as expanded ranges from existing licensees.

New products will also launch this year for The Snowman, includ-

ing adult and kids apparel and accessories, activity magazines, gifting items, publishing formats, and expanded ranges from existing licensees. International agents already in place include The Joester Loria Group (U.S. and Canada), Black Mint Licensing (Australia and New Zealand), BN Licensing (Benelux), Asiana Licensing (Korea), StylingLife (Japan), and The Agency (France).

The Country Diary of an Edwardian Lady, based on a 1906 hand-illustrated diary by British illustrator Edith Holden, has sold millions of copies in its print editions. The Country Diary merchandising program has been successful for decades, led by a paper goods line at Marks & Spencer, which has carried the range for 28 years.

New licensed products for this year in the UK include puzzles, a paper partyware range, gifting items, and expanded ranges from existing licensees. Internationally, new launches include 2015 calendars and an expanded gifting range with burton + BURTON in the U.S.

Lisa Marks Associates Adds Key Partners

Lisa Marks Associates expands the Peeps, Hot Tamales, and Mike and Ike programs with key strategic partners and new products.

Mattel has launched a collection of Peeps, Hot Tamales, and Mike and Ike-branded die-cast vehicles into all retail channels.

The line features art and graphics displayed on classic cars and trucks, including a Hot Tamales ’56 Ford F-100, a Peeps ’56 Chevy Nomad, and a Mike and Ike ’71 Chevy El Camino.

PetSmart exclusively features the Peeps pet toy collection by Fetch this spring. Dogs will enjoy the Peeps-themed rings, crunchers, plush, and vinyl toys, and the collection is featured in a national commercial as well as in print, advertising, and social media. Fetch also plans to produce additional products, including pet clothing, accessories, and beds.

Wilton Industries introduced a broad range of Peeps items, including cookie cutters and pans, baking pans, and party goods, including baking cups, treat bags, edible decorations, stands, and boxes. The collection launched this year at Wal-Mart, Michaels, and Jo-Ann Fabric and Craft Stores, and will expand into additional retail accounts with a broader product line next year.

Yankee Candle captures the essence of Peeps with a Peeps

102 • The Licensing Book

Marshmallow Chicks scented candle, featured as a highlight of the Easter collection. Yankee Candle has also signed on for both home fragrance and auto fragrance with the Peeps brand. Yankee Candle has supported this program with a viral campaign as well as feature displays and in-store signage.

Peeps toys, from Little Kids, will launch next January, including a range of bubble toys, wands, necklaces, blowers, and whistles.

DanDee International will offer Peeps plush, pillows, baskets, bags, and purses featuring Peeps chicks and bunnies, which is now available in mass, drug, grocery, mid-tier, and specialty retailers. The line will include marshmallow-scented plush toys.

Peeps ’56 Chevy Nomad, from Mattel

Summer 2014

Licensing Expo 2014

Corporate Brands New Lately Lily Doll Is on the Horizon

Happyworld furnishings

Infinity Licensing to Rep Home Furnishings Brand

Happyworld, the new home furnishings brand by Heidi Kenney, pop-artist and creator of Yummy brand, has partnered with Infinity Licensing LLC to launch the brand across home, kitchen, and bath markets, with additional licensing partners to follow.

The designs feature Kenney’s imaginative world of smiling, anthropomorphized snacks, desserts, and household items. The whimsical designs appeal to kids, teens, and adults.

Adventurous girls’ property Lately Lily is inking licensing deals for apparel, books and activities, and its first doll with MerryMakers Inc. The Lately Lily doll, set for release this fall, captures Lily’s spirit and style in a beautifully crafted plush pal.

This year, Chronicle Books will debut a colorful picture book, Lately Lily: The Adventures of a Traveling Girl, which showcases Lily’s global adventures.

With the vibrantly colored Lately Lily ABC Travel Flash Cards, kids can learn about the world of travel and the alphabet.

The Lately Lily Sunny Yellow Suitcase is a travel activity kit that includes games, doodle ideas, activity cards, luggage tags, stickers, and more.

Licensed apparel products will be available on latelylily.com and will feature Lily’s newest adventures in Tokyo with graphic T-shirts.

Perfetti Van Melle Expands Airheads

The Perfetti Van Melle Group will have its Airheads brand represented by The Beanstalk Group at Licensing Expo.

The candy was first produced in 1986 in the Van Melle facility in Kentucky, and today it is one of the most widely known products offered by the group in the U.S. Airheads are found in the U.S. at major retailers in all channels of the trade, including food, drug, mass, convenience, club, and specialty stores.

The Airheads brand has translated the individualistic approach and fun personality that consumers love about the brand to imaginative and playful products. Airheads popsicles are a classic on the shelves, and the brand now also offers colorful clothing, cosmetics, and accessories.

To embody the Airheads look, a style guide has been designed based on the brand’s icons and personality. It will appeal to teens and young adults who want to experiment with the playfulness and fun of the Airheads brand in new ways, beyond

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the confectionery aisle.

After successfully introducing its brands Chupa Chups and Airheads in the licensing arena, Perfetti Van Melle is gearing up to license Mentos and Frisk.

Mentos is sold in more than 130 countries, and will develop a fresh lifestyle licensing program in several categories, such as apparel, accessories, electronics, personal care, stationery and publishing, gifting, games, and home products, revolving around original concepts that transmit freshness, fresh ideas, and flavors. The program will be developed in the U.S. and across several European markets by next year.

Summer 2014

Licensing Expo 2014

Corporate Brands

ASPCA to Unleash New Licensing Partners

The ASPCA, the country’s oldest and most well-respected animal welfare organization, will enter new categories this year.

For the kids market, Commonwealth Toys has partnered with the ASPCA on a line of plush, which will be sold at both Kmart and on QVC, while Sophia’s Heritage Collection has added pets and pet products to its 18-inch doll line. Both licensees will bring the shelter adoption experience to a new generation of animal advocates. The ASPCA’s licensing team is also developing a collection of children’s books in partnership with Studio Fun (formerly Reader’s Digest), which will be released next spring.

In the collectibles category, licensee Bradford Exchange will launch handcrafted figurines that pay tribute to the love between a little girl and her many kittens, while Enertec Enterprises will introduce a line of nine miniature dogs with their own doghouses.

ASPCA rectangle bed In the apparel and accessories categories, Vans has introduced a line of pet-themed shoes, backpacks, and more, entitled Vans x the ASPCA’s pet products, which include plush toys for dogs, as ASPCA. Ralph Lauren launched a campaign to bring attention to well as pet beds and throws, will continue to be sold at stores animals in need, timed to Adopt-a-Shelter-Dog Month last Octothroughout the U.S. All products support the ber; the campaign showcased the brand’s fall accesASPCA and its mission to save animals. sories line alongside adoptable dogs.

By licensing the ASPCA name, Ralph Lauren donated 10 percent of licensees create a marketing platform for the sales of select merchandise to benretailers and consumers to be a voice for efit the ASPCA. In addition, current animals. Partners such as ASPCA Pet licensee David & Goliath continues to Health Insurance, Visa, and Wecreate graphic T-shirts.

Care’s online shopping portal are revPaws N Claws eyewear A new jewelry licensee this year is Alex & Ani, enue drivers, while Petking, European which will release a symbolic charm bracelet to support the Home Design, and Evenflo continue to build momentum with ASPCA as part of its Charity By Design program. Alex & Ani joins pet products, including toys, beds, dog sweaters, leashes, and existing jewelry licensee Firestar Diamond’s Tender Voices col- collars. These are sold at mass retailers such as Target, Kmart, lection, which is available at stores across the U.S., including and Ross Stores. Feline social media sensation Lil Bub is donatZales. Rounding out the accessories category is Paws N Claws ing 10 percent of the proceeds from the product sales at her store eyewear, which will be available at JCPenney to the ASPCA to benefit special needs cats. Seasonal promotions stores nationwide, as well as at partici- with PBteen and West Elm will round out this diverse licensing pating Wal-Mart and Sears stores. and retail strategy.

Partners for household Throughout the coming year, the ASPCA licensing team products include plans to bring together current and new licensees for the PBteen for pillows ASPCA’s 150th anniversary in 2016. Graphique de France is and West Elm Char- already on board with a celebratory calendar. As the ASPCA ity for mugs. broadens its program, consumers will get more opportunities Vans shoes Finally, for pet lovers, to show support and be a voice for animals.

106 • The Licensing Book

Summer 2014

Brandgenuity Partnership Smells Like a Winner

Brandgenuity has brought together two household brands for a new product—the Hefty Ultimate with Arm & Hammer garbage bag. Utilizing the odor neutralizing technology of Arm & Hammer baking soda, this garbage bag gives consumers a strong bag with gripping technology and odor control. Additionally, the Boppy Co. will launch a line of diaper bags inspired by the iconic pillow and sophisticated patterns. The bags will incorporate extra benefits for both moms and babies.

Brandgenuity has secured the first licensee for RV industry leader Winnebago Industries with a robust line of apparel and accessories that feature vintage designs and phrases from the outdoor brand.

Trump Home Expands into Latin America

The Trump Organization and Homestudio International have partnered to expand the Trump Home brand in Latin America with a collection to include bedding, bath accessories, towels, tabletop, and decorative home accessories inspired by the Trump brand.

Set to launch this fall, the collection will hit department and specialty stores in Central and South America, as well as in the Caribbean.

The Sharpe Co. Knows Pets Rock

Pets Rock is an intriguing world of real pets dressed like celebrities. The real pets are photographed and digitally illustrated to celebrate the cult of celebrity. Launched at last year’s Licensing Expo, Pets Rock boasts more than 50 licensees worldwide. In North America, the brand can be found at retailers such as Target and Urban Outfitters in categories including juniors, men’s apparel, and homewares.

There are opportunities to enter the Pets Rock world in the health and beauty, accessories, trend merchandise, and pet products categories.

Happy Jackson boasts bespoke product development, ensuring all partners get unique designs that work just for them. It’s a fresh approach with clean, crisp messaging and relevent, eyecatching products. In the U.S., the licensed merchandise program has launched in homewares and gifts, with greeting cards at Target through Recycled Paper Greetings.

As the 40th anniversary of the invention of the Rubik’s Cube

Summer 2014

approaches, the newly updated Cube, with molded tiles and a smoother, faster turning mechanism, is on shelves at mass retailers.

The exhibition at the Liberty Science Center has taught people about the Cube’s impact during the last 40 years, from art and design to science and engineering.

Rubik’s Cube has also been nominated for a LIMA Licensing Excellence award this year. New licensees continue to jump on board with the launch of a Rubik’s Cube mini refrigerator, robes, socks, ties, blankets, lamps, and a Nintendo Wii and a DS game.

Opportunities are still available in accessories, health and beauty, giftware, collectibles, and land-based casino games.

Birmingham Small Arms Company (BSA) and Norton Motorcycles are filtering into key categories, including giftware and high-end accessories. Norton Motorcycles has sold half a million T-shirts in 12 months in the U.S, and has just signed an apparel license with Lucky Brand. BSA has just launched in North America, with opportunities still available in apparel, accessories, diecast, collectibles, and giftware.

The Licensing Book • 107

Licensing Expo 2014

Corporate Brands

The Licensing Co. Expands Food Brands

Key properties for The Licensing Co. (TLC) include Hershey’s, Hershey’s Kisses, Hershey’s S’mores, Reese’s, Twizzlers, and more.

The Hershey Co.’s new home décor licensee Sweet Novelty will offer consumers Hershey’s plush items, including pillows, rugs, bean bag chairs, and blankets.

TLC has worked closely with The Hershey Co. to develop a longterm growth strategy for the U.S. non-food licensing program.

This year and beyond, TLC will expand existing partners into new products and territories and new platform development in baking, crafting, and expressions.

Expanding the line of Welch’s make-at-home smoothie kits and extending Welch’s further into this growing category, Nature’s Touch Frozen Fruit Inc. is set to debut two new Welch’s Fruit and Veggie smoothie kits at Loblaw Companies Ltd. Canada in July. Welch’s Green Supreme and Welch’s Orange Sunrise smoothie kits are made with fruits and vegetables harvested at their peak ripeness.

Welch’s has extended its vibrant fruit flavors through a variety of products, including fruit snacks, fresh and frozen fruit, frozen smoothies kits, 100-percent juice ice bars, filled licorice, concentrates for in-home carbonation systems, and food service condiments. Welch’s target audience is families who are fun, energetic, socially connected, and enjoy making more out of life’s everyday moments. TLC will work closely with Welch’s to expand existing partners into new food products and to sign new partners in the breakfast, confectionary, baking, housewares, and kitchen electrics categories.

With more than 14 billion Jelly Belly jelly beans enjoyed worldwide every year, Jelly Belly Candy Co. celebrates the strategic 10-year licensing program that brings the brand to life in multiple product categories, including fashion accessories, apparel, candles and home fragrances, stationery, kitchen appliances and accessories, bath and body products, and Jelly Belly-licensed flavored food and beverage products.

108 • The Licensing Book

Mattel Teams Up to Expand Major Brands

This year, Mattel hands the keys to the Hot Wheels brand to Toy State, a manufacturer of licensed and highly stylized lights and sound R/C toy vehicles. Under this agreement, which runs through 2016, Toy State will design and build a new line of highoctane, lights and sound, and R/C cars using custom versions of Hot Wheels iconic vehicle styles.

Fashion Angels lets girls make the world of Ever After High their own with arts and crafts activity kits. These crafting products help girls explore their imaginations while creating beautiful crafts to wear, share, or customize their room. The Fashion Angels Ever After High line includes a Watercolor Portfolio, 3D Velvet Nail Art Kits, Wrap Bracelets with story-themed inspirational message bars, Wish Bracelet Kits featuring high-quality molded Ever After High zinc alloy charms, hair accessory kits, and make-up sets.

Sakar International has introduced a new collection of Ever After High electronics and accessories inspired by the dolls. The line includes mobile and smartphone cases, audio accessories, karaoke systems, and more.

Huffy has partnered with Mattel for Barbie, Hot Wheels, and Monster High bikes and scooters available at Kmart and Sears.

Launching this year, Dora & Friends will introduce a new cast of friends and an enchanted city to explore for the preschool icon. Nickelodeon will unveil modern gadgets and the power of friendship and teamwork to help Dora on all of her adventures in the city of Playa Verde. The series will continue to incorporate bilingual content and will incorporate a new dimension of community and friendship for preschoolers.

Based on the creative spirit and lovable characters of the Paul Frank brand, Julius Jr., the preschool series that premiered on Nick Jr. in September, is packed with music, inventive-spirit, and adventure. FisherPrice brings Julius Jr. to life to help extend the imagination and play beyond the screen.

Mattel and Marvel have collaborated to introduce a line of co-branded Hot Wheels cars and play sets featuring the brand’s most iconic superheroes.

Summer 2014

Licensing Expo 2014

Corporate Brands

LMCA Is King of Consumer Products

LMCA manages multiple consumer products companies worldwide. The Westinghouse program focuses on key consumer, commercial, and business-to-business categories, such as LCD TVs and laptop computers. LMCA also manages Kenmore, and seeks prospective licensees in categories such as home entertainment products.

Craftsman manufactures hand tools, power tools, lawn and garden, and other products. Potential licensees will find brand opportunities in many categories. For the automotive battery brand DieHard, LMCA’s program involves licensing into automotive accessories, lighting, and consumer electronics products.

Current licensees for Snuggle include Reckitt Benckiser for air fresheners and Jeffco for pillows, mattresses, and mattress toppers. LMCA has signed a licensee for home textile and bed-

ding and seeks partners for health and beauty aids, pajamas and slippers, plush, and a range of other categories.

For AT&T, LMCA seeks a multi-category licensing program partner for consumer electronics and mobile accessories, and licensees in wireless video cameras, GPS trackers, and other categories. Trane, a company focused on whole house heating and air conditioning, has licensing agreements in place for a number of categories, including portable air conditioners, humidifiers, and air purifiers.

LMCA seeks partners for its Museum of Fine Arts, Boston license in paint, home décor, greeting cards, stationery, posters, and other categories. Photography brand Agfa has plans for expansion beyond Europe and North America, and new licensing areas include imaging and visual products.

TLG Showcases The American Collection

The Licensing Group Ltd (TLG) will showcase The American range of material for the diverse comic book reader market.

Collection at Licensing Expo. The American Collection offers con- Through exposure in feature films and TV shows, the Los Angeles temporary emblems and symbols of Americana. The collection Police Department (LAPD) offers such well-known icons as the includes interpretations of a wide variety of government and mil- LAPD logo and other images for licensing. itary iconic marks. Licensees of the brand may participate in a philThe Andrea Alvin Portfolio consists of iconic American anthropic program with the National Military Family Association images for creating arresting products of all types. Automobiles (NMFA). NMFA provides programs and benefits to aid the families are the central theme of Lucinda Lewis’s Car Culture collection of our troops. By participating in this program, licensees can mar- of more than 100,000 photographs of cars of various styles, ket their support of NMFA on their product years, and of all descriptions; and and at retail. images of roadside America.

The Heart Girl brand encourages little Bitter Girls is a group of five girl girls to create their own form of imaginary characters whose humorous, snarky play. Malibu Life, an aspirational lifestyle quotes give voice to those inner brand created by SPD Brands, projects the thoughts and emotions experienced by classic California beach lifestyle. The Flight most every girl or woman.

Patterns licensing program is inspired by the Ciao Belli is a collection of photographs of kittens and puppies in international airport three letter codes, and endearing poses. The Ciao Belli portfooffers a unique way to create new imagery lio consists of more than 100 images for travel-oriented products.

Car Culture, by Lucinda Lewis and adds new material regularly.

Bluewater Productions has created a

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Summer 2014

The Toon Studio Presents Once Upon a Zombie

The Toon Studio’s frightening Once Upon a Zombie brand features a cast of zombified fairy tale characters, including Zombie Snow White, Zombie Cinderella, and Zombie Sleeping Beauty. The brand has a lot in store with its upcoming book, Once Upon a Zombie: The Color of Fear and an upcoming Zombie doll launch throughout Europe. The Zombie dolls were top-selling in Spain and Portugal, and The Toon Studio seeks new licensees across all consumer product categories.

Licensing Link Gets Bubbly with Dubble Bubble

Licensing Link has inked a deal with Evergreen Brands for a line of Dubble Bubble-inspired Bubble Baths in three scents: bubble gum, apple, and grape. The line is sold nationally at retailers including Big Lots and Dollar Tree, and will expand to additional retailers next year. Additional Licensing Link clients include White Castle, Lemonheads, The Brooklyn Brewery, Chef Lorenzo, Muy Pop, Withit, Dippin’ Dots, and Duncan Yo-Yo. Licensing Link looks to expand on the Dubble Bubble brands, as well as to expand the White Castle brand into other food areas following its line of frozen sliders, which are made and sold in-house by White Castle.

kathy ireland Worldwide Continues to Grow

kathy ireland Worldwide (kiWW) continues to experience growth, expanding into mobile accessories with kathy ireland Connect. kiWW is already seen in bridal designs, fine jewelry, apparel, infant and toddler apparel, intimate and sleepwear, socks, footwear, anti-aging skincare for men and women, light therapy, furniture, flooring, indoor and outdoor lighting, accessories, window treatments, home office, leather and microfiber, mattresses, sheets, towels, hand-painted fine porcelain, and decorative shelving. kiWW has launched strategic relationships with Raymour & Flanigan, Nebraska Furniture Mart, National Business Furniture, and American Family Insurance. kiWW has also segued into the gift industry with several new product categories, such as candles, fine china and flatware, crystal, luxury chocolates, organic florals, stationery, and pet products. Other new categories include home remodeling, quick-toassemble furniture, garden, kitchen, publishing, and children’s toys. kiWW recently

Summer 2014

launched into holiday décor with Once Upon a Christmas Collections, to be sold in fine department stores and multiple channels of distribution across the U.S. kathy ireland Designs, ACafé by Chef Andre, and Jardin by Nicholas Walker offer casual dining, mattresses, leather, upholstery, resort-wear, totes, and accessories.

Other categories include real estate, vacation, and wedding events. Kathy Ireland is represented by William Morris Endeavors (WME) in all areas of entertainment and related licensing. A wholly owned kiWW subsidiary manages licensing and entertainment for Janet Jackson, including her New York Times No. 1 best-selling book True You, which includes 30 recipes for healthy living developed by Chef Andre of ACafé. Key retail partners of kiWW exceed 65,000 in 50 countries.

Fine retailers, such as Macy's and Belk department stores, carry kiWW products. kathy ireland Office can be found at fine retailers nationwide, including National Business furniture, officedepot.com, and staples.com.

The Licensing Book • 111

Talking Social Media

I

Six Social Media Predictions What to Expect in 2014

by Stephanie Moritz, digital professional institute (DPI), senior director, ConAgra Foods

t is estimated that more than 15 million brands use Facebook to reach clients and advertise their services. Whether companies are charitable organizations, for-profit businesses, or family restaurants, Facebook has become a gateway to engage with consumers, gain meaningful information on new products and trends, and build relationships with current and future buyers.

However, Facebook isn’t the only social platform that requires a business’ attention. There are new social media platforms and trends in play that will have an even bigger role this year and in the future. As the year progresses, many social media features will evolve to meet the needs of both companies and consumers, and it will be crucial for people to stay on top of all the latest changes.

Here are six social media trends that will color the way companies do business online this year:

1. Social Pay-to-Play: Brand social media will continue evolving to look more like traditional media. This will force brands to upgrade their content, make tough decisions on pay-to-play, and be selectively opportunistic on what remains truly social.

2. Google Gets Serious: Google will get serious with YouTube and Google+, with the former being the first to see some major changes.

3. Social TV: Social TV is on the rise. Twitter and TV go hand-in-hand. Television continues to grow as a social experience, with consumers watching, engaging, sharing, buying, and commenting in real-time on social media platforms.

4. Facebook Monetizing Graph Search: A monetization scheme for Facebook Graph Search will begin to materialize. With Facebook Graph Search, users can now 112 • The Licensing Book

search Facebook for topics that interest them, whether they are posts about last night’s awards show or places for good Mexican food in their city. Companies will soon be able to use this information to help them better understand their clientele and to organically fit into conversations that people are already having on Facebook.

5. The Rise of Instagram: Instagram will have a huge year in terms of growth (with more ad dollars to follow).

As a result, more companies are going to join this newer form of social media. From hairstylists and fashion designers posting photos of their work to restaurants tempting patrons with images of their latest dishes, Instagram will play an important role in how companies engage their consumers.

6. Channel Diversification: There will be greater brand diversification with presence across all social channels as well as new ad offerings and options. Companies now realize that having a Facebook page isn’t enough when so many potential consumers also utilize other forms of social media, such as Twitter, Instagram, and Pinterest.

Social media will continue to grow and evolve as technology progresses and improves, and customers and companies should stay on top of these current trends to ensure that they are getting the most out of their time online. The possibilities are endless.

•••• Stephanie Moritz is an advocate for digital and social marketing. In her role as senior director of social media, public relations, and experiential marketing at ConAgra Foods, Moritz shaped ConAgra’s enterprise-wide social media strategy, social media metrics, fast-cycle consumer findings approach, community management, and real-time marketing newsroom. She was recognized as one of PR Week’s, “40 Under 40.”

Summer 2014

Marketing Memo

Brand Ambassadors Are Launch Partners, Whether You Like It or Not

By Stephen Reily, chairman and managing director, IMC

f you think you can launch successful licensed products without using online influencers and brand ambassadors, think again.

The old model of brand management—telling consumers what to think about a brand—is dead. The same goes for the old model of brand licensing— approving products and then waiting for royalties to come in. Making a great product happen nowadays means getting customers talking about it, too.

As Gopi Kallayil, Google’s chief evangelist for brand marketing, told students last month at the Stanford Graduate School of Business, “You don’t have a choice. [Consumers] are going to do it anyway.”

Kallayil used SC Johnson’s Ziploc brand as an example of the idea that no matter how many banner ads or free standing inserts the brand may pay for, a consumer who Googles “Ziploc bags” will turn up thousands of YouTube videos made by individual consumers. Those amateur videographers are now brand managers as well.

I

Influencer Marketing: Why Now?

Consumers have always influenced one another’s purchase decisions, but thanks to social media, that influence has exploded over the past 10 years. That’s why you have to treat consumers as partners.

Almost all major consumer product companies are using brand ambassadors and influencer marketing as part of their new product launches. There are several reasons why: • Consumers rely on peer reviews more than any other form of marketing communication.

• User-generated content represents authentic, storytelling communication, which all marketers crave.

Summer 2014

• Consumers use Google and their mobile devices to check out new brands and products online. Search engines such as Google, and websites such as Amazon, have not only trained us to cycle between research and commerce, but also to do so naturally.

While such tactics are now standard operating procedure for brand marketers and their agencies, they remain underdeveloped in licensing. Many licensors still limit their partners’ ability to promote their products online, usually because they worry about losing control over their brands. In turn, many licensees pay a lot of money to license a brand and develop products that meet its approval, yet still seem reluctant to make this additional marketing investment themselves.

Both sides need to change. Licensors should begin requiring licensees to adopt influencer marketing campaigns for their new products, and licensees should begin demanding the right to do so.

What is the one thing most likely to make you remember and try out a new product or brand? For me, it’s hearing about it from someone I trust.

Whether it’s a book, a shampoo, a cereal, or a hotel, in the cycle of decision-making that also includes advertising, earned media, and coupons, the little voice in our head that says, “Nancy told me she liked this,” will propel us toward a purchase like nothing else.

It’s time to get Nancy working for you.

••••

Stephen Reily is the chairman, managing director, and general counsel of IMC, an agency that develops new products for global consumer brands and uses its influencer marketing division to get consumers talking about them.

IMC’s clients include SC Johnson, AT&T, Dole Foods, Kimberly-Clark, and L'Oréal.

The Licensing Book • 113

Licensing 101

New Licensees: Selling and the Sales Team

by Jim Sachs, partner at Harris-Sachs LLC Licensing n my last article, I addressed the reality of owning a license for the first time and how to set the stage for finally selling it. If a licensee expects success, it is incumbent upon the company to develop both a comprehensive marketing program and an equally comprehensive sales program. During my years in manufacturing and as a licensee, I had a tough time reconciling the difference between marketing and sales. That is, until I actually had to get out into the field with the reps and buyers. There is a huge difference between the analytical marketing plan and the actual “hands on” effort of selling.

Fundamentally, securing a license should provide a competitive advantage. It should: A) Shut out the competition B) Provide instant recognition C) Make the sales effort easier Certainly, A and B are true. However, The sales process is a long haul. It many new licensees will take at least a year to secure and established manufacturers that are new any sales traction. Most sales to licensing labor under efforts start a year out and must, at the misconception that that time, synch with retail buyers’ merely having a license windows of opportunity.” guarantees immediate acceptance by retailers and consumers, and that sales will skyrocket. Yet, this way of thinking is simply not true. The sales

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114 • The Licensing Book

effort is the same old slog, but the licensee now has something really compelling to sell, with a story supported by the strength of the property. So in that respect, the sales process is easier.

First, the licensee must develop effective collateral sales materials for the sales force that will emphasize the product and license attributes. This information should include samples, sell sheets, slideshows, and price lists with all specs, terms, and conditions. In this retail environment, no buyer likes to “walk the point.” The licensing information passed on to him or her should establish the retail viability of the license in no uncertain terms. The information should include would-be existing licensees and where they have current distribution, demographics, trends, and sales history reports of the license as a whole. If possible, the program should also offer the retailer some sort of partnership tied into the license. This effort may take the form of co-op advertising, social networking, character or celebrity personal appearances, etc. All these materials and approaches need to be definitively spelled out before the selling or hiring of sales peo-

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ple begins. The entire sales force needs to completely understand the program details. Any potential cause for confusion should be eliminated before any sales calls are made.

In order to sell the product, the licensee has to have seasoned key account managers in house and/or factory reps with established buyer relationships. For start-ups, the key account manager could be the owner, chief cook, and bottle washer. If factory reps are the primary sales tool, an effective sales manager or owner must organize and direct the sales force.

The process of hiring a sales team is, at best, a hit or miss proposition. No matter how well vetted the sales people are, there is no guarantee that they or their implied contacts will reap benefits. One needs to keep in mind that factory reps own their own businesses, are entrepreneurs, and represent multiple lines.

They gravitate to the lines that they understand and that they estimate will have the most rewarding returns. They also support those companies that support them. Therefore, the first sales effort is by the sales manager/owner “selling” the reps on the credibility of the new licensed line and the financial rewards the rep can expect if they take it on. This sales effort is actually the most important in the entire process.

Once the sales rep accepts, it’s an on-going educational process with lots of encouragement, cajoling, and fine-tuning. The licensee sales manager

Summer 2014

One needs to keep in mind that factory reps own their own businesses, are entrepreneurs, and represent multiple lines. They gravitate to the lines that they understand and that they estimate will have the most rewarding returns.”

needs to be a very effective communicator on multiple levels, both with the rep and the buyers.

The sales process is a long haul. It will take at least a year to secure any sales traction. Most sales efforts start a year in advance and must, at that time, synch with retail buyers’ windows of opportunity. I would call on Wal-Mart twice a year—once for the following year’s general planogram and once for the seasonal business. If I missed that window or failed to sell the buyer, I had to wait an entire year for another opportunity.

Consequently, the first year of selling is building a foundation and fixing marketingand sales-related problems. During this year the licensee will find out quickly where the changes must be made in the sales force.

In conclusion, the most brilliant marketing plan ultimately relies on talented, motivated sales people and managers. Go find them.

••••

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.

The Licensing Book • 115

Licensing Expo 2014

Art & Publishing

MGL Looks to Match Up Marsh Mellow

MGL will showcase the Valentina brand, which has new licensing partners on board for bedding, apparel, stationery, and giftware, with products set for release later in the year at retailers worldwide. New licensing programs to note this year include My Gifts Trade, which will roll out stationery, home fragrance, and mugs.

Another focal point of this year’s show for MGL will be the launch of the Penguin-partnered preschool property Marsh Mellow. MGL will showcase the new style guide that will support Penguin’s launch of both sticker and activity books in the summer. Licensing partner Sterling will roll out an extensive line of Marsh Mellow back-to-school stationery later

Zolan Marks 36 Years of Brand Licensing

this year. MGL will seek to license Marsh Mellow across all key categories worldwide to build on the momentum of the brand’s publishing program.

MGL will also showcase Reilly’s new offshoot brand TANTA. Reilly is known for his previous collections Back2Front and Kashi Kisu, as well as his partnerships with Jimmy Chu, Coca-Cola, and Kylie Minogue. Riding high on his recent commission for Italian luxury carmaker Lamborghini, MGL will showcase its first character-based property this year. With international partners already on board, including Chilean stationery partner Libesa, MGL expects the property to continue to grow this year.

The Zolan Co., an Americana Heritage kids’ art brand, marks 36 years in brand licensing with continued growth and expansion worldwide.

Zolan returns to Las Vegas for the Licensing Expo for its 17th year. Promoting its Americana, Heartland, Nostalgic, and cobrand collections, the company launches new product concepts with a team of Italian designers in the technology, fashion, and housewares categories. New product categories that will be on display include beachwear for girls, holiday plates and mug collections, T-shirts from Heartland America, and iPhone and computer covers.

The brand continues to emphasize its Americana roots, not only in art, but in made-in-America products, including bags and accessories, puzzles, throws, prints, and greeting cards.

New license agreements for this year include calendars from Boystown USA and Willow Creek Press Int’l, Harvester fabrics from Cranston Inc., greeting card craft kits from Joanna Sheen Ltd. in the UK, checks and labels from Current Inc., agenda notebooks for the YMCA in Columbia, educational books from Editora do Brazil, greeting cards and calendars from Masterpieces Inc., and prints and accessories from Fine Art America.

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Ceaco Has Disney Dreams to Share

Ceaco, manufacturer of high-quality jigsaw puzzles, has the exclusive rights to produce a series of puzzles based on Thomas Kinkade’s Disney Dreams Collection, a group of paintings inspired by great moments from famous Walt Disney movies.

Expanding on the company’s 17-year partnership with Thomas Kinkade, these 750piece puzzles will feature iconic moments from the film for collectors and Disney fans.

Summer 2014

Building brands one brick at a time…

Booth G-171 • Alita Friedman, LLC info@alitafriedman.com • www.alitafriedman.com

Licensing Expo 2014

Art & Publishing

Loose Leashes’ Dogs Ready to Fetch Licensing Partners

Ron Schmidt’s storytelling approach to photographing puppies, mutts, and purebred dogs is distinct. With more than 450 licensed products in the marketplace today, including books, calendars, greeting cards, and Dog Art prints, consumers and retailers seek Ron’s work because the images are captivating and original. Schmidt seeks international agents and manufacturers to expand the brand.

Schmidt has two picture books published by Random House, both of which include rhyming poems for kids ages 3 to 6. Dog-Gone School, the latest book release, covers all aspects of school— for dogs, that is.

Current licensing partners include Random House and Hallmark’s Sunrise Greetings, which recently secured distribution with the U.S. Postal Service and is rapidly expanding into all postal locations with a moveable spin-rack.

It’s Happy Bunny Gets New Representation

Benton Arts’ It’s Happy Bunny brand, featuring a cute little bunny with a big attitude, has new representation. Mark Mostman and Striker Entertainment is the new agent for the awardwinning brand.

The End (Almost) features Donut’s silly antics in a picture book from Scholastic. The book is geared toward kids ages 3 to 5, and international rights have recently been granted for the book in Japanese and Portuguese.

Dog Butts and Love. And Stuff Like That. And Cats. is a new book of Jim Benton’s web cartoons, published by NBM. Set to debut at Comic-Con International: San Diego this year, designs from Benton’s collection are already testing on paper product at retail. The company is looking for licensees across all categories.

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Thomas Kinkade Canvases for Licensees

The Thomas Kinkade Co. is interested in new licensing partners in a range of home décor categories, including bedding, dishware, candles, and garden. Highly recognized in the U.S., further opportunities internationally will drive growth of the Thomas Kinkade brand. Kinkade’s images depict gardens, cottages, estates, cityscapes, plein airs, holiday scenery, as well as commemorative American landmarks.

Thomas Kinkade Studio continues in the path that Thomas Kinkade himself started and developed. Thomas Kinkade Studio Artists paint in the true Thomas Kinkade style with great attention to detail and an overwhelming appreciation of the way a picture can tell a great story.

Summer 2014

Pampered Girls Founders Celebrate 10 Years

Dean and Lona Berko, Shan Ogdemli, and Daniel Feldman have built Pampered Girls into a global fashion lifestyle brand with 10 years of sustained growth and more than 50 licensees and strategic alliances. International markets include Japan, China, Taiwan, India, South America, Mexico, and Europe. This year’s Pampered Girls U.S. product launch includes jewelry, cosmetics, digital life accessories, bath and body, home décor, fashion bags, and apparel. U.S. retailers include J.C. Penney, Wal-Mart, QVC, and more.

Jenny Foster Celebrates the Spirit of Life Jenny Foster’s style is primitive and contemporary, embellished with joyful colors and abstract forms and symbols.

She has created a line of bold, sweet characters designed for a variety of categories, including greeting cards, home décor, clothing, and more. The images appeal to children as well as young-at-heart adults.

Foster will introduce her new line for this year, which features animals including horses, fish, bugs, birds, and cats. Foster has signed with Editions Ltd. for prints, Westland Giftware for home décor, and Carson Industries for holiday products.

Licensing Expo 2014

Art & Publishing

The Wildflower Group Gets Exotic with Bombay Brand

New York City-based licensing and branding agency The Wildflower Group and global trading company Hermes-OTTO International USA are set to expand the Bombay lifestyle label further into the decorative home products marketplace with stylish introductions from Popular Home Products and into the pet market with Innovia Design Solutions. New products from both companies will be on retail shelves this fall.

Popular Home Products will create an assortment of decorative pillows and unique bath hardware, bath storage, and window hardware that will convey the Bombay’s classic style accented with exotic influences. The collection will be available at mid-tier retailers, home specialty outlets, and in catalogs.

Innovia Design Solutions embraces the brand’s adventuresome overtones with an extensive collection of pet products for dogs, cats, birds, and fish. While initial products will debut in September, the full line will launch next spring at pet stores, warehouse clubs, specialty and department stores, and e-tailers.

The new Bombay pet merchandise program will translate the

brand’s design elements into useful everyday items that pet owners can share with their companions.

The Wildflower Group seeks to expand the Bombay brand into a host of lifestyle categories for all areas of the home, including kitchen textiles, home office essentials, fabric and upholstery, flooring, home storage and organization, seasonal décor, bathroom fixtures, luggage and travel accessories, men’s and women’s gifts, and more for midtier and specialty retailers. New licensees will be announced soon. Currently available at retail are offerings from Powell Furniture, JLA Home Fashions, and Lifetime Brands. Additionally, the outdoor collection from The Arden Companies will be introduced later this year.

The Bombay brand name was introduced in 1978 as a mailorder business that grew into a chain of more than 450 boutique specialty stores and ultimately achieved more than $500 million in sales. For 35 years, the brand has encompassed a blend of classic style with exotic influences that produce heirloom-quality furnishings and authentic design reproductions.

Phil Marden Joins the Licensing Game

Phil Marden got his first drawing published in The New York Times 30 years ago and has been speaking to a sophisticated urban audience through his illustrations in The New York Times, The Atlantic, Entertainment Weekly, and other publications ever since. Now, he’s taking the plunge into licensing.

This year, he will introduce approximately 30 new design collections inspired by mid-century illustration and design. Several of his designs have already been picked up by Keka for phone cases, and he has been tapped for the second year in a row to design Australian swimwear for Tom & Teddy. Marden has design collections created specifically for bedding, kitchen textiles, fabric, tabletop, and stationery.

Marden, best known for his humorous conceptual illustrations, has also done character design for TV and films. His new designs are populated by playful-looking people and animals.

He builds on his traditional illustration style to achieve a more graphic look by focusing on simple shapes; bold, flat colors; and repeating patterns. Marden’s work is an amalgam of the geometric and pared-down style of classic illustrators such as Otto Soglow and William Steig, the minimalism and restrained good-humor of Danish Modernism, and some of the kookiness of Atomic Age graphics.

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Guess How Much I Love You Seeks New Licensees

The classic children’s book Guess How Much I Love You, by Sam McBratney and Anita Jeram, turns 20 this year. To mark the occasion, Candlewick Press will launch an extensive global marketing and publicity campaign this fall, including global trade and consumer advertising campaigns, widespread media coverage, a dedicated website, and social media promotions.

The publisher also seeks licensing partners to build on the brand’s milestone anniversary. Opportunities are available for new licensees in the apparel, bedding, nursery décor, housewares, confectionary, paper goods, and stationery categories. Currently, key partners for the brand include Kids Preferred and Dionis. Guess How Much I Love You licensed products in the U.S. include soft and plush toys, bath and bodycare products, recordable books, fabric, and more. In addition, Little Nutbrown Hare has hopped onto the screen, as young fans can watch the Guess How Much I Love You: The Adventures of Little Nutbrown Hare animated TV series on children’s networks worldwide.

Pumpkinheads Debut

The Pumpkinheads brand builds upon the children’s book series created by Karen Kilpatrick. Preschoolers can relate to the characters as they explore, dream, imagine, and learn. The publishing program has released five titles, and four new books will be out later this year.

Scholastic Canada has picked up the books for its Book Fairs. The Pumpkinheads shows potential and opportunity across multiple product categories, including soft dolls, toys and games, accessories, apparel, paper products, room décor, and more.

Egmont Goes on a Temple Run

Egmont has a number of launches coming from digital brands this year.

The Temple Run fiction and downloadable activity books kick off this fall, and a My Signing Monsters range launches next year. The latter will include a My Singing Monsters downloadable activity book, a handbook, a search-and-find title, and a design-your-own-monster book.

At the end of last year, Egmont launched The Minecraft Construction Handbook, which was the No. 1 seller on the UK Book Chart for four weeks, while the company’s other three Minecraft handbooks also ranked in the top 10. Currently, Egmont is developing licensing opportunities with both big and small companies.

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Licensing Expo 2014

Art & Publishing

Alita Friedman Looks to Partner Up Best-Selling Authors

Alita Friedman LLC services its clients to align brands and form strategic partnerships and initiatives in today’s global marketplace. Its clients include St. Martin’s Press, a division of Macmillan Publishers that boasts numerous best-selling women’s fiction authors that reach female consumers ages 25 to 49. St. Martin’s current roster includes Kristin Hannah, Jane Green, Lisa Scottoline, Mary Kay Andrews, and Jackie Collins.

Alita Friedman LLC also represents Mob Wives in all categories globally. Renee Graziano has a best-selling cookbook, How to Use a Meat Cleaver, an erotic novel entitled Playing with Fire, and a new brand, Mobcandy. Big Ang has the Big Ang Wine collection

from Italy, as well as a new book, Bigger Is Better: Real Life Wisdom from the No-Drama Mama.

It has been 50 years since the birth of the lifestyle brand Oilily in Holland. To celebrate, Alita Friedman LLC and PS not just another agency are bringing the brand to the U.S. with a comprehensive licensing and strategic partnership program.

Zipz Premium Wine Anytime, which offers premium wine in a non-breakable, recyclable traditional stem glass, and Pix-oPop, which features illustrated characters that inspire happiness, harmony, and friendship, will also be available for licensing in all categories.

Daryl Slaton and Tails of Whimsy Teach Important Lessons

Artist and storyteller Daryl Slaton will launch the Mighty Ma- has a future-retro art style—a blend of classic animation and chines of Mackie McKeens. Mackie gets kids thinking early with comic book looks combined with modern digital techniques. his high-tech Seussian machines. This endearing bear and his Since the art uses digital techniques, it is easily convertible to inpartner Mika build zany contraptions that solve problems, while teractive e-books and apps. providing self-esteem and a sense of accomplishment for kids Daryl Slaton and his Tails of Whimsy studio’s The Amazing ages 4 to 8.

Adventures of the BrokenHeart Pets will Mackie and Mika’s workshop features tradicharm young children who love animals tional and futuristic tools and gadgets. Stories inand want to bring them home with its corporate aspects of science, construction, engizany cast of characters. Tails of Whimsy neering, design, and business in a fun, simple will showcase Scooter the dog and Boots way that appeals to children. Concepts such as the cat this year as a niche to educate collaboration, hard work, problem solving, and kids to love and care for their pets. leadership are intrinsic to the story, with the idea The recently released BrokenHeart that early interests could propel future careers.

Pets Tag Collection will travel with tagWhile not an educational property, the Mighty makers Dog Tag Art on a road tour from Machines of Mackie McKeens sets the stage for May through July for a To the Rescue, Suyoung minds to actively explore life lessons perhero Tour. Stopping at animal shelters nationwide with a mission to protect pets through books, toys, puzzles, and apps. Ultiwith proper identification tags and supmately, an animated series would bring the propport animal shelters in the process, the erty to life utilizing its broad audience appeal. By partners will donate $3 for each tag sold extension, iconic Mackie and Mika would also Scooter the Dog, from Tails of Whimsy to support animal rescue. adapt well to apparel and room décor. The brand

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Summer 2014

Schoolies Sets Sights on Reaching New Heights

Schoolies, the preschool brand made popular by the expansive growth of Schoolies books published by Priddy Books, a division of Macmillan Children’s Publishing Group, will be on display at International Licensing Expo as it seeks out new licensing and promotional partners.

The Schoolies brand launched with a successful preschool educational mobile app, Spencer Goes to School, available for Apple iOS and Android devices. Last year, Priddy Books introduced five titles spanning across mass, book, specialty, and online retailers. The books feature Spencer the Owl and his friends as they prepare for their first day of school, make new friends, and learn their ABCs and 123s.

Given the strong sales across the Schoolies book line, Priddy released nine new titles this spring, as well as two additional titles to arrive on shelves this fall and winter, bringing the total number of titles to 17—with international editions now available in 12 countries.

With retail placement including Wal-Mart, Target Canada, Toys “R” Us, Meijer, Sam’s Club, Costco, Barnes & Noble, Amazon, Pottery Barn Kids, and others, total Schoolies book sales are set to exceed 1 million books by the end of the year.

Harris-Sachs LLC Stays True to Its Mission

After weathering the changing tides of the licensing industry for the past 23 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 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. HS studies the individual business, and attends trade shows and markets to make sure all of their clients are able to acquire the best Member Charter 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 placeComplete Licensing Services ment. A major part of this strategy involves the ability to call upon Experience • Knowledge • Integrity the many contacts to which H-S has access. Personal relationships 159 Brandon Court built over the long term are an important asset in a world of texts Neshanic Station, NJ 08853 and emails from strangers to other strangers. As the company heads Tel (908) 369-5358 into the future, change will occur faster than ever before. Those who Steve Harris are ready for it and, in fact, welcome it are the ones who will conJim Sachs steveh@licenseadvisor.com tinue to be leaders. Harris-Sachs LLC stands as a proven leader in www.licenseadvisor.com Ken Harris licensing consulting.

Harris - Sachs LLC

Summer 2014

The Licensing Book • 123

Publishing & Licensing

4 Reasons Why Magazines Make the Perfect Licensing Platform

by John Parham, president and director of branding, Parham Santana ou might have noticed the recent rush of magazine brands staking a claim far away from the newsstand. Esquire Network is ambitiously taking the famous men’s magazine brand to TV airwaves, while Condé Nast hopes you’ll head to GQ Bar or Vogue Café for a drink. Editors at Teen Vogue recently collaborated with Macy’s to launch a clothing line for the youth demographic, and Playboy is launching a line of spirits that will include both Playboy Vodka and Playboy Tequila.

These business ventures give publishers a hedge against declining print revenue, but there are other big benefits for anyone considering a licensing partnership with a magazine brand. Here are four reasons why magazines make the perfect licensing platform:

Y

Southern Living—she lives it.” Southern Living’s brand extensions include everything from linens to tableware, and each ties back into a core magazine content area, such as food, home, or gardening. Most recently, Southern Living decided to play off the magazine’s strong travel content by launching a hotel collection endorsed by the magazine.

Readers trust magazines to provide context and help them make decisions.

Editors at glossy magazines unpack complex ideas and give readers the context they need to make decisions. These monthly publications are able to provide more in-depth research than 24-hour news networks.

During a recent “coffee conversation” with teens, they told us that they rely on Teen Vogue to make political issues relevant to their lives and help them keep up with what is and isn’t in style. It’s only natural that those fans would feel confident picking up a piece of clothing under the same brand name.

They create strong brands through carefully curated content.

Most magazines already have a built-in brand that’s clear and focused. They’ve created powerful identities by focusing on the topics their readers care about most.

Many represent full-fledged lifestyle brands that naturally extend into products. As Greg Schumann, the publisher of Southern Living, noted in a recent Adweek article, “We always say that our reader doesn’t just read

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“There’s still an impressive

reach for the best glossy publications. The top 25 magazines reach more adults than the top 25 TV shows.”

Magazines wield a powerful promotional platform for licensed products.

A magazine brand gives licensees an enormous built-in platform for promotion. Think of editorial integration, magazine advertising, and special events.

Think of how a magazine’s licensed products might be featured in an editorial spread that has the potential to be seen by millions of readers.

Southern Living, for instance, plans to boost its new hotel collection with a spread in the magazine. When Teen Vogue introduced a new bedding line to national retailers, the magazine held a contest for one lucky reader to win a bedroom makeover by a professional designer. The after photos, makeover story, and style tips featured the new products, and this editorial content ran in both the print magazine and online.

Advertising pages are also a good choice for promoting brand extensions. According to a report from the The Association of Magazine Media (MPA), more than 60 percent of magazine readers have taken action from an ad.

Magazines know how to build massive reach and a sense of community.

Print is far from dead. There’s still an impressive reach for the best glossy publications. The top 25 magazines reach more adults than the top 25 TV shows, according to a report from MPA. Plus, subscribers naturally build up long-term, highly engaged brand loyalty because they’re paying for those copies to show up in the mailbox each month.

Many publications have aggressively jumped into social media as well as popular websites, Pinterest boards, Facebook pages, and Twitter accounts. Martha

Summer 2014

(Top) Vogue Café at The Dubai Mall; (Bottom) Teen Vogue bedding sold at JCPenney

Stewart Living, for example, has nearly 400,000 Pinterest followers, more than 50,000 Twitter followers, and more than 600,000 Facebook fans. A mention on any of these social channels could be a serious sales driver.

••••

John Parham is president and director of branding at Parham Santana. For more than 20 years, Parham’s positioning and brand extension strategies have guided longterm, multi-billion-dollar retail programs at major national retailers, including Wal-Mart, Target, and Toys “R” Us. Parham’s clients include leading media and entertainment companies such as Food Network, Sesame Workshop, and Discovery Channel.

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Licensing Expo 2014

Art & Publishing

Edebé Licensing Clientele Go Beyond Gorjuss

The main target audience for Mirabelle is females The most successful properties for Edebé ages 10 to 40.

Licensing are the Gorjuss and Mirabelle CollecEdebé’s other main properties include Catalina tions, both from Santoro London. For the GorEstrada, a premium art and design brand with more juss Collection, Spain is currently a strong than 40 licensees worldwide, as well as six licensing market, with products present in more than sub-agents covering Brazil, South Korea, France, 1,500 stores and 13 licensees already on board Benelux, Germany, the UK, Australia, and New for back-to-school, stationery, travel, accessories Zealand. Catalina Estrada has been licensed in for electronic devices, bedding, arts and crafts, many categories, including bedding, gift, stationery, and more. In addition, El Corte Inglés has wallpaper, fashion bags, and apparel. Two recently signed a deal for direct-to-retail apparel and signed agreements are for ceramic products with an nightwear, while Undercolors of Benetton has Italian company, as well as a direct-to-retail deal launched three successive nightwear, underwith Almacenes Éxito from Colombia. The brand is wear, and loungewear collections with Gorjuss Gorjuss, from Santoro London currently a top seller with its licensed products in across Europe. The broad demographic appeal of Santoro’s Gorjuss Collection spans all ages with a core target Spain, Scandinavia, Brazil, Germany, Mexico, and Benelux.

New premium art and design brands include Martin Sati, audience of females ages 8 to 40.

Santoro’s Mirabelle Collection has appointed its first licensees which has two new licensing agreements for vinyl skins for elecfor the gift, stationery, accessories, electronic devices accessories, tronic devices and wall paper, and Cecille Collage, which offers travel, and back-to-school categories. Undercolors of Benetton has fresh and modern styles. Edebé Licensing is also focused on launched the first Mirabelle nightwear, underwear, and building a licensing program for Paddington Bear, which will loungewear collection across Europe for this spring and summer. have a feature film at year’s end or in early 2015.

GirlNation Launches Teen Lifestyle Brand

Built to empower girls, lifestyle brand GirlNation’s licensed artwork combines dynamic typography, empowering quotes, and timeless, colorful doodle art to style apparel, bedding, fashion, and more.

With a target market of girls ages 10 to 15, GirlNation strives to bring tweens and teens products that will inspire and encourage them in a positive way. The line embraces femininity and aims to re-conceptualize the idea of what makes girls beautiful.

Feather Doodle Pattern, from GirlNation

ADG Adds Four to Its Lineup

Artistic Designs Group (ADG) has added four artists to its roster of designers: Vicki Schreiner, Jennifer Parker, Sherri Ohler, and P. Carter Carpin.

Schreiner is behind Bazooples, aka Baby Zoo People, which can be found in stores throughout the U.S., along with a number of other designs. Parker has a niche style of collage that mixes Victorian imagery and digital skills for uniquely designed paper products.

Ohler’s work features whimsical, emotional, and spiritual depth in a way intended to bring comfort and joy, while Carpin’s Serious Whimsy line offers art and home furnishings for both the children’s and gift markets. It includes bright patterns with birds, flowers, and animals.

Bird on Branch, from P. Carter Carpin

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Penguin Young Readers Group Has New Titles for Kids

Ladybug Girl

Through a co-branding partnership with Cartoon Network, global book publisher and brand owner Penguin Young Readers Group launches Adventure Time Mad Libs. The partnership also secured deals for T-shirts and drinkware with Bioworld and Backstage Pass Inc. Additionally, Penguin brings beloved characters, including Llama Llama, Ladybug Girl, Otis, Corduroy, Spot, and Flower Fairies, to life in picture books illustrated by artist Jan Brett.

On the production side, partners are set to create plush dolls, games, apparel, and sleepwear based on the characters.

In a newly finalized deal, Penguin has partnered with the National Football League Players Association on a master publishing program, projected to hit store shelves in the summer of 2016. The program includes brand-inspired Mad Libs titles, football-themed “Choose Your Own Adventure” titles, and other activity and biographical titles.

Crown Creative Struts Its Stuff

Crown Creative will showcase Rebecca Bonbon, the canine creation from Hello Kitty creator Yuko Shimizu. Key licensing categories signed last year include beauty products, app games, backpacks, and apparel.

Rebecca Bonbon will celebrate its 10th anniversary next year with a new look featuring an artistic and trendy collection, keeping with the fashion-influenced character brand. Yuko Shimizu will attend press tours in Australia, United Arab Emirates, Taiwan, and Hong Kong during this year.

Sugar&Babe Tokyo is a trendsetter in the juniors’ market. Strong licensees represent apparel sectors in the U.S. The Sugar&Babe brand’s look is inspired by the fashionable “street-style” of Tokyo, and is reminiscent of the ensembles showcased on the runways of London.

The Suger&Babe line has already begun to generate popularity within the U.S. celebrity world, including Camila Banus from Days of Our Lives on NBC, Paige Thomas of Fox TV’s The X-Factor, Lornalitz Baez of NUVO-TV’s Curvy Girls, Candice Glover, American Idol Season 13 winner, and American Idol Season 13 finalists, Angie Miller Sugar&Babe Tokyo and Amber Holcomb.

Summer 2014

Llama Llama

HCA Creation Has Graphic Styles for All

HCA Creation is a French design studio with a team of innovative illustrators and graphic designers that creates concepts for teenagers and adults.

Combining elements of contemporary and modern grace, HCA develops a new graphic style guide every year for its properties with several different lines from fashion to actuality.

HCA was founded and is orchestrated by its creator Hervè Chiquet, who continues to inspire and evolve with innovative approaches.

Comprised of more than 3,000 design samples and nine unique property collections, HCA continues to expand globally with more than 30 licensees worldwide and a broader market presence.

Properties developed include Catsline, Dogs & Shapes, Kate-Rose Berry, Charming Day, Miss Dolly, Little Charlie, Tedinours, Comic Park, Amiko-Shi, and Lolli-Booh.

Feather Doodle Pattern, from GirlNation

The Licensing Book • 127

Marketing Memo

Why Aim to Create a Classic into a d e t l Va u

Brand When It Can Be

New Universe ?

by Ted Mininni, president, Design Force Inc. vergreen brands, such as Sesame Street, Harry Potter, and Star Wars, have used licensing and transmedia entertainment in traditional and digital spheres to grow and appeal to multiple generations.

These brands remain relevant by offering new content that is firmly rooted in their values.

Similar to adult brands, not all kids’ brands become classics. Many fads and hot sensations drop off just as quickly as they peak. Some of these brands have enjoyed resurgence—Cabbage Patch Kids, Pokémon, Furby, and entertainment brands such as Teenage Mutant Ninja Turtles and Transformers—while other properties have faded away completely. Other classic brands, such as Hasbro’s Nerf, Play-Doh, and the Candy Land board game, and Fisher-Price’s Chatter Phone pull toy, have been steady, but unspectacular. The same is true for children’s entertainment brands such as Scooby-Doo, Wile E. Coyote, and Clifford: The Big Red Dog. But classic brands don’t have to be status quo. What elevates some classics to superstar status? The answer is fresh new storylines brought to life across many media outlets and digital platforms, from the traditional to the latest social media sites. Books, movies, animated series, video shorts, and dedicated websites filled with games and contests can be leveraged to offer snippets of favorite properties’ stories to keep kids engaged. This transmedia approach uses multiple platforms to share new elements, background, and character insights, instead of repeating the same storyline. Using each communication platform to its maximum potential deepens fans’ brand experiences and increases their engagement, fur-

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128 • The Licensing Book

ther developing fans’ relationships with the brand.

Transmedia is immersive and encourages kids to share with their friends, which builds a buzz for the brand that doesn’t fade. Because they’re so imaginative, kids participate and co-create storylines, leading to deeper engagement. Fresh new stories resonate with young fans and provide more licensing opportunities as well. Brand owners who collaborate closely with selected licensing partners can build a powerful presence at retail, making the property tangible for fans. In order to accomplish this, brand owners have to develop a long-term strategy and execute it step-by-step. As transmedia enables them to unfold rich new content, they can also develop a licensing strategy alongside it.

Think of it this way: Brand owners can develop far more than a classic brand by creating a brand universe.

New Ways to Make Classic Properties Fresh and Exciting

If brand owners think of fresh ways to present them, well-performing classic brands can be turned into hot “new” properties, vaulting them into superstardom.

It’s wise to think outside the box when properties become culturally entrenched because they have unlimited potential. Disney’s Cinderella, Snow White, and Sleeping Beauty have remained beloved classics for generations. Yet, Disney found a way to reinvigorate their power—taking them from classic to a whole new level—by including more recent characters, Belle, Jasmine, Ariel, Mulan, and others, to create a new Disney Princess brand.

Under the name “Princess,” Disney created a fresh, new super brand that incorporates all the royal characters. This new brand lends itself to new storylines in books and films, websites filled with new storylines

Summer 2014

and games, and of course, merchandising. Disney Princess has rocketed to the top of all kids’ licensed entertainment brands—proof of the power of transmedia where integral elements of storylines are disseminated across multiple channels creating a unified, compelling entertainment experience.

How about Marvel? A stroke of genius led to the entertainment giant’s decision to bring the classic team of superheroes—The Hulk, Iron Man, Hawkeye, Captain America, The Black Widow, and Thor—to the silver screen to save the world from Loki and his army in The Avengers. This approach created the biggest movie blockbuster in recent history, leading to a global gross of more than $1 billion in a little more than two weeks.

Long before this happened, a long-term strategy gradually unfolded. Movies about each of the superheroes featured in The Avengers were released over several years. Marvel’s parent company, Disney, published books for a new generation of kids to fill them in on the superheroes’ backstories. An animated series, Avengers Assemble, based on The Avengers, brought the characters’ personalities and stories forward with the same feel as the films. Marvel worked with its video game licensees to bring The Avengers heroes back to prominence. All of these threads were artfully woven into the feature film that brought all of the superheroes together. By the time the feature film was released, anticipation had built to a crescendo. New licensed consumer products were just as hotly anticipated. Fans saw sneak peeks of collectibles to whet their appetites and pre-order merchandise, long before it appeared on retail shelves.

Marvel’s approach lays out a blueprint for classic toy and entertainment brand owners to consider following. Comic books have long been populated by crossover from various superheroes; why can’t that be replicated on film? Or, taking a page from Sesame Street, new characters can be introduced over time, interacting with the brand’s original characters to advance new storylines and add interesting new personalities. Another approach might be to jettison all original characters in order to present entirely new generations centered on a classic storyline. The Star Trek franchise is a perfect example of this, making prequels

Summer 2014

to the existing stories, rather than only sequels.

Why shouldn’t there be a planned strategy patiently unfolded over a period of time? And why can’t multiple delivery channels be leveraged to tell pieces of new characters’ stories and new plots?

When children, who are consumers of entertainment as much as adults are, adopt specific properties as lifestyle choices, it’s because those brands have created complete worlds of engagement in which kids can interact with their favorite characters and share them with their friends to become part of a special universe.

With so many properties emerging faster and across more media outlets than ever, many will miss the opportunity to develop their full potential. Many will fail to connect for the long haul; they might be hot for a while, but will quickly disappear. However, they can make a comeback if their brand owners use a transmedia approach and new stories to engage their fans—as long as they ring true to their values. But relatively few entertainment properties will achieve classic status.

Even heritage brands are likely to plateau and be steady performers sans creating ongoing excitement.

It takes bold brand owners with a vision to amp up their properties beyond creating enduring, but unexciting, classics by finding ways to create entire universes in which fans are only too eager to immerse themselves. A vision that is turned into strategy, and long-term plans that are brought to fulfillment via ongoing transmedia storytelling, makes all of the difference in the world. Just ask legions of fans around the world who can’t conceive of living without their favorite properties.

•••• 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. Minnini blogs about package and licensing program design at www.designforceinc.com.

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Toy Licensing

LIMA Update

continued from page 46

continued from page 20

Figure 5 Toy Co. Hasbro

2013 Date 3/28 5/17 7/26 11/18

Movie G.I. Joe 2 Star Trek 3 Iron Man 3 Thor 2

Toy Type Action Figure Action Figure Action Figure Action Figure

2014 Date 4/4 5/2 5/23 6/27 8/1 10/24 11/7

Movie Captain America 1 Spider-Man 5 X-Men 6 Transformers 4 Guardians of the Galaxy 1 Ouija 1 Big Hero 6

Toy Type Action Figure Action Figure Action Figure Action Figure Action Figure Board Game Action Figure

Mattel

3/22 6/14 7/17 8/9 11/22

The Croods 1 Superman 2 Turbo 1 Planes 1 Frozen 1

Preschool Action Figure Preschool Preschool Fashion Doll

5/9 5/30 7/18 10/1

Oz Returns 2 Maleficent 1 Planes 2 Max Steel 1

Fashion Doll Fashion Doll Preschool Action Figure

Jakks Pacific

3/8 6/3

Oz the Great 1 Smurfs 2

Fashion Doll Preschool

4/15

Rio 2

Preschool

Playmates

8/8

Teenage Mutant Ninja Turtles

Action Figure

Bandai

5/14

Godzilla

Action Figure

Spin Master

6/13

How to Train Your Dragon 2

Action Figure

12/9

Hobbit 3: There and Back

Action Figure

3/21

Muppets 2

Preschool

The Bridge Direct

12/13

Hobbit 2 Smaug

Action Figure

Just Play Thinkway Toys

7/3

Despicable Me 2

Action Figure

which will allow future product developments without the need for in-bound licensing. Mattel also created the successful Monster High brand, followed by the Ever After High line extender, which again lessens its dependence on outside licenses. Mattel also bought Mega Bloks, which will allow it to roll all of its own brands into the rapidly growing construction toy category. With American Girl, Mattel went one step further—it not only created the brand, but built its own stores in which to sell the products. Some companies, such as Melissa & Doug and MGA Entertainment, do not enter into any licensing relationships (as licensee) at all.

In essence, while licenses have a place in toy marketing and will not go away, they may often be a Trojan Horse gift to be treated with great care and circumspection.

••••

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.

130 • The Licensing Book

I’m an agent or a licensee, what are the metrics that are going to help me know whether the blogger, YouTube star, or social media personality is worth the time, effort, and expense? It’s a fundamental question, made all the more challenging by fragmentation of the modern media landscape.

A YouTube trade ad that featured the three personalities mentioned that Mota has more than 5.8 million fans, Phan has more than 6.1 million fans, and Pansino has more than 1.5 million fans. It’s important for anyone in the licensing business to understand whether those numbers are large or small compared to others (I’ll presume they’re large), and whether a count of the sheer number of fans is a valuable metric.

I asked a senior buyer for a specialty retailer what he makes of numbers like that, and he brought out a couple of interesting points. He said he used to look at how many fans (or “likes” or “views”) a property had accumulated to date, but that as he got deeper into it, he learned to look more at the recent rate of growth, how many of those fans had been added in the preceding weeks or months.

It’s also a matter of sensing how closely those fans are connected to the property, he says. Whether it’s a band, a TV show, or a social media personality, teens want to feel that they have a close personal connection. “’Likes’ and ‘views’ aren’t engagement,” he says. “’Shares’ are engagement.”

Perhaps, as we all continue to learn more about the ever-changing media landscape, a host of other metrics that let businesses more accurately gauge whether a property is right for them will come to the forefront. It’s as much art as science. Any, all, or none of the YouTube stars may turn into hot licensing properties. The fun and potential profit is in picking the right ones.

••••

Marty Brochstein joined Licensing Industry Merchandisers’ Association (LIMA) in 2008. Brochstein was a business journalist for more than 20 years, covering the consumer products and retail industries. He spent five years as senior editor of Television Digest and was the founding editor of Consumer Multimedia Report. He was also editor of Consumer Electronics Monthly and Electronics Merchandising, and spent time with Discount Store News, Chain Store Age, and Home Furnishings Daily.

Summer 2014

Digital Licensing

A

Virtual Branding Reasons to Bring Your Brand into the Virtual World

by Robert Ferrari, CEO, Bare Tree Media

s brand and licensing professionals, we’ve all physical products to digital goods, and brands—both approached the market the same old way for large and small—should capitalize on these new buyyears: establish a brand, secure a licensee to ing habits. produce a product, create concepts and samples, secure Virtual branding engages digital-savvy consumers retail placement, spend market development funds, with the brands they love through mobile and online plan budgets, crank the factories, ship, and hope the platforms. Bare Tree Media has created an ecosystem products sell well. This torturous process can some- of digital distribution partnerships worldwide, offering times take up to two years—but new brands the ability to reach billions of opportunities are emerging. For digitally connected consumers who years, the only way for brand owners are eager to engage and purchase and licensors to reach their fans was branded digital content. We project through traditional physical products the global market for virtual branded and retail channels. Now, brand owngoods to be on track to exceed $20 bilers have the opportunity to partner lion in gross digital sales this year. with virtual branding companies to As consumers connect more frecapitalize on the billions of people quently through their smartphones worldwide who consume digital conand tablets, virtual branding drives tent through their smartphones, awareness, engagement, and monetitablets, web-connected devices, and zation for brands through two key computers. product categories: social messaging Virtual branding companies help mobile apps and social online games. brands reach fans globally, quickly Through social messaging mobile create digital products, sell them digapps, users can create a social circle Garfield emoticons itally, and get paid all within about three to four and add personality to their text messages by inserting months. With no product samples, no inventory, no fun and meaningful character-based images—called markdowns, and no returns, virtual branding is the branded emoticons—and digital stickers. For example, hottest business opportunity for brands this year. Dig- a person can text “want to grab lunch?” along with an ital distribution of virtual branded goods within online image of Garfield gorging on lasagna. Or, if he or she is and mobile platforms is exploding. This category is feeling romantic, that person can text an image of Hello developing on a global basis and offers fast market Kitty giving a hug. This mobile category is exploding speed, broad product flexibility, global impact, and low worldwide, and Bare Tree Media has formed platform risk. Consumers are shifting their buying habits from partnerships on a global scale. We’ve placed brands

132 • The Licensing Book

Summer 2014

within the most popular forms. Digital coupons in messaging apps such as the online platform incite LINE in Japan; WeChat consumers to shop for in China; KakaoTalk in retail items while codes Korea; Cubie in Taiwan; on hangtags at retail and numerous mobile encourage them to purplatforms, such as KIK, chase virtual goods. It’s a Tango, and Viber, popuwin/win for all involved lar in the western hemiparties. sphere. Users within Branded mobile apps these platforms buy virare another option for tual branded character companies looking to packs through their break into the virtual Zwinky users can purchase David & Goliath items for their characters. mobile devices, offering branding space. Bare brands expansive revenue opportunities without ever Tree Media recently partnered with Live Nation Mercreating a physical product. Virtual branding compa- chandise for a KISS Photo Bomb mobile app. The app nies such as Bare Tree Media manage the digital cre- allows fans of the rock ’n’ roll band to KISS-ify their ation, brand submissions and approvals, digital photos by adding KISS band members and KISS effects. channel placement, and sales tracking for all of its Users can even send text message with KISS emoticons branded content on behalf of brand owners. This vir- from within the app. This incorporates a few different tual branding model not only drives revenue opportu- elements into one easy-to-use app, giving fans another nities for brands, it also provides an opportunity where way to engage with the band they love without profans become brand ambassadors sharing branded mes- ducing a physical product. sages with friends and family.

This exploding sector of virtual branding is availConsumers active within online social platforms and able to brands of all sizes and categories. Unlike tradionline games have the opportunity to engage with tional retail, which tends to cater to the large, brands as virtual goods in the form of virtual apparel, well-known legacy brands, virtual branding is available accessories, and consumables. For example, a fan of the to large brands as well as unknown and emerging Charuca brand can now buy a pair of virtual Charuca- brands. Virtual branding allows high sales volumes for branded jeans in the online game Meez, a fan of the toki- the large brands, while also providing an opportunity doki brand can buy a tokidoki-branded handbag in for smaller brands to go global very quickly. Virtual OurWorld, a fan of the David & Goliath brand can buy branding has broken down the barriers previously a David & Goliath-branded hoodie in Zwinky, and a fan established by traditional physical product licensing, of Hello Kitty can buy a virtual bedroom set to deco- allowing fans worldwide to enjoy brands they love and rate his or her virtual apartment in MiniMundo. By plac- discover new brands.

•••• ing brands in these online environments frequented by hundreds of millions of teens and young adults, propRobert Ferrari is the CEO and founder of Bare Tree erty owners are giving consumers the opportunity to Media, a virtual brand creator and publisher. Ferrari is an purchase digital versions of the branded products that previously could only be bought at brick-and-mortar active industry speaker and currently serves on the advisory retailers. Brands can also set up cross promotions to boards of MIT Enterprise Forum for Games, MIT Business in drive sales of virtual goods from brick-and-mortar Games (BIG), and MassDiGi. He can be reached at rferretailers or sales of physical goods from online plat- rari@baretreemedia.com.

Summer 2014

The Licensing Book • 133

Licensing Administration

How to Minimize Risk: Implementing Software and Maximizing Benefits Part Two in a Series

By Amos Biegun, CEO of Counterpoint Systems n my continuing series on how to minimize risk when embarking on an enterprise-level software initiative, I’ve come to the most challenging part of the process: the actual implementation of the software.

While selecting the right vendor is the most critical decision you make in the process, actually rolling up your sleeves to implement the software you’ve chosen is the most trying part. Not only must you carry on with your day-to-day responsibilities while justifying your selection to stakeholders, you must also ensure that the investment you’ve made is successful, on time, and on budget, thus protecting your investment over the long term.

The key to a successful implementation—just as in the selection process—is to focus on the end result. Keep in mind the initial business drivers that led you to consider the software you have chosen in the first place. An important lesson I’ve learned through my experiences deploying hundreds of implementations globally as the CEO of Counterpoint Systems is that the goals that lead you to embark on the project get derailed if they are not

I

134 • The Licensing Book

tightly managed.

Here are some suggestions on how to best manage your project to realize the benefits of the software you’ve selected:

1

Leverage the strengths of your vendor.

Remember, one of the reasons you selected the vendor you did is because they have deep experience in your industry and a track record of delivering successful implementations. While you may have some terrific tools for managing projects of scale, be open to the resources afforded to you by the people you’ve trusted to manage your implementation. They know what works and what doesn’t with their software specifically. Trying to make the new software solution fit within your existing process, rather than utilizing the full benefits of your new application, may undo those benefits and cause delays to your project.

2

Be prepared. Gathering and documenting your business requirements is the first phase of an implementation, and deciphering between a business requirement and a current business process is an important distinction. While you may have been given a laundry list of requirements by your business users, I would always question these, as this is the best opportunity to undertake an internal review of these requirements. Challenge each requirement to determine whether it will stand the test of time and/or if it’s relevant enough to carry over today.

Summer 2014

Again, rely on your vendor and be open to suggestions on how to accomplish your business goals differently.

3

Assemble the right team. No one knows your business better than your users, so it seems logical that they should be involved in the implementation of your new software. Of course, they also have their day jobs. One of the biggest hazards we see clients fall victim to is a lack of time and resources put toward an implementation effort. It’s not enough to rely on the business requirements given to the IT group that may manage an implementation with your selected vendor, the ongoing involvement of the business users is absolutely critical to translating requirements, meeting milestones, and achieving success. An implementation is a full-time job, so allowing only a few hours a week toward the project just won’t work. Make sure everyone is on board and be prepared to bring in additional resources to help carry the load, perhaps in backfilling the key users for a period of time while they focus on the implementation project.

4

Be brave. It’s vital that your team understands that with a new system comes a fresh start. The tendency to hold on to legacy data can bring a software implementation to a screeching halt. Deciding what data to bring over to your new system should be based on how your business operates today and is likely to do so in the future. Carrying over old, irrelevant contracts and financials is a trap into which many fall. This process adds time for reconciliation and can skew the direction of the current project. The inputs and outputs you set up should be based on current contract structures and data dependencies, not legacy data. On the other hand, just because you don’t bring it into the new system doesn’t mean you have to discard it. Draw a line in the sand and archive what isn’t necessary, perhaps using your

Summer 2014

legacy system as the archive mechanism.

5

Set achievable goals. Waiting to realize the benefits of a software implementation can be frustrating to both you and your stakeholders. Set realistic, achievable goals throughout your project.

Know what to expect and share those expectations with your business users and management team.

Work with your vendor to set goals and devise a project plan for how to get there. Review and adjust accordingly.

Remember that these types of systems are installed for years of benefits, and a few weeks here or there can ensure a much more robust installation.

Following these five simple guidelines will make the process of implementing your software more predictable, manageable, and successful.

Look for my next installment, “How to Minimize Risk: Protecting Your Software Investment” to learn how to measure and protect your soft•••• ware investment.

“

...the goals that lead you to embark on the project get derailed if they are not tightly managed.”

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.

Counterpoint was recently acquired by Vistex, an enterprise application software company, the largest supplier of “Go to Market” solutions, specializing in incentive management and channel marketing solutions and services. Headquartered near Chicago, Vistex employs more than 700 (more than 800 with the addition of Counterpoint) employees and operates out of 13 global locations.

The Licensing Book • 135

Of Counsel

Minimum Royalty Guarantee:

Moderating R is k

Licensing 101, Part 73

by James Kipling, Of Counsel This is the 73rd article in a series devoted to the creation and documentation of the licensing relationship and to elements of a typical license agreement.

A

s discussed in Parts 71 and 72 of this series, licensors routinely demand a Minimum Royalty Guarantee in connection with any significant grant of rights, almost without regard to what category of licensed property or licensed products may be involved. To compound the risk for licensees, these guarantees are frequently divided into segments and the segments are not permitted to be “cross-collateralized.”

In too many cases, licensors will negotiate a unitary guarantee with the licensee, and may even repeat the single sum in a deal memo, only to disclose in the first draft of the license agreement that the previously discussed sum has been elaborately subdivided and allocated into a matrix of mutually exclusive mini-guarantees.

One relatively simple example discussed previously (in Part 71) involved a multi-year license term in which the licensor had divided the guarantee into portions recoupable only against royalties generated from sales during each of the respective years of the term. When so divided, a licensee is put at risk to the extent that its sales might fluctuate significantly from year-to-year during the life of the agreement. Generating royalties below the minimum in one year would require a “make up” payment of the deficiency at the end of that year; while generating royalties above the minimum in another year would not result in a credit against the prior year’s—or a subsequent year’s—deficiency.

136 • The Licensing Book

Other Bases for Division

In addition to dividing the Minimum Royalty Guarantee by increments of time, the licensor also may impose divisions among portions of the licensed territory, divisions among categories of licensed products, or among the granted channels of distribution. Each time the Minimum Royalty Guarantee is parsed in this fashion, unless the individual portions are permitted to be cross-collateralized, the licensee is put at a greater risk of not being above to recoup, or “earn out,” various segments of its initially proposed singular guarantee.

When evaluating risk, the licensee should carefully analyze each subdivision sought to be imposed by the licensor and estimate its ability to meet each discrete portion of the guarantee. Unless it is extremely confident that it will achieve each separate “minimum,” the licensee should prepare logical arguments against any such portions that appear to create unreasonable risk.

This exercise can be as significant as negotiating the total amount of the Minimum Royalty Guarantee itself, because failure of the licensee to earn out such subdivisions can result in an effective guarantee that can be several multiples of the negotiated total guarantee.

Territorial Allocations

For example, a total guarantee of $100,000 for North America may be subdivided so that $80,000 can be recouped only against royalties generated in the U.S., and $20,000 only against those generated in Canada. If sales in the U.S. were to result in royalties of $280,000, and those in Canada were $5,000, the licensee would have to cough up an additional $15,000 for Canada even

Summer 2014

though its total payments were nearly triple the total negotiated minimum. (A more traditional allocation is 90/10 U.S./Canada, based upon relative sizes of the economies of the two.)

Some such situations can have their own unique problems. For example, if the licensor imposes territorial allocations of the Minimum Royalty Guaranty among the countries of the European Union, the licensee faces a significant problem. Under the laws of the European Union (EU), contractual restrictions on the movement of products cannot apply among member countries. Unless the licensee is certain that it can control distribution by means other than contract, it will be at a great risk of failing to meet minimums in some countries of Europe simply because it lacks control.

Therefore, it is strongly recommended that any allocations of Minimum Royalty Guarantee among member countries of the EU should be limited to only those countries representing the most significant markets.

Whether other territorial divisions are appropriate must be considered in the context of the individual licensee’s business. For example, a licensee of the National Hockey League teams indicia might happily accept a more evenly balanced guarantee division than the 90/10 referenced above.

must assume the “worst case” unless its licensor accepts a contractual obligation not to exploit the channels not granted to the licensee. In such a case, this negative assumption must be factored into the licensee’s determination of its willingness to enter the agreement as it stands, or to work toward some other offsetting concession, such as a predetermined reduction in its guarantee in the event that the “reserved” channels are granted to a third party.

Allocations by Distribution Channel

The extent to which the licensor may attempt to apply allocations to the Minimum Royalty Guarantee is often limited by the creativity of the licensor on one hand, and on the other by the creative resistance of the licensee. As suggested at the beginning of this article, licensees need to consider the potential risks to the “bottom line” of any such divisions and respond accordingly—even by willingness to walk away from the deal.

••••

Unless the licensee is granted rights for all distribution channels, its first question to the licensor should be whether “reserved” channels—i.e., not granted to the licensee—will be made available to its competitors within the same categories of licensed products. There may be reasons for the licensor’s limitation of channels to be exploited, for example, some channels may be incompatible with the “image” of the licensor’s property.

However, if those channels not granted to the licensee are not agreed by the licensor to remain unavailable to third-party marketers, the licensee runs a real risk of cannibalization of its sales by products of other licensees in those other distribution channels. No reasonable licensor should refuse to commit one way or the other when asked this question, and the licensee

Summer 2014

Allocations among Product Categories

Previous articles in this series have addressed the importance of careful definition of the categories of licensed products. For example, any grant of exclusivity is only as significant as the clarity of its applicability.

Similarly, allocations of portions of the Minimum Royalty Guarantee by product category must be considered together with the breadth of the definitions of such categories.

If there is no room for expansion beyond the initial product offering during the term of the argument, achieving the minimums will be all the more difficult.

Conclusion

James Kipling has represented licensors and licensees for more than 20 years, negotiating entertainment, sports, artwork, brand, invention, and technology agreements. He is Of Counsel with Dinsmore & Shohl LLP in Cincinnati, and can be reached at (513) 977-8536, or jim.kipling@dinsmore.com.

Copyright: ©2014 James M. Kipling. All rights reserved.

The Licensing Book • 137

Directory of Properties, Products and Services

THE LICENSING BOOK, Summer 2014 “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. © 2014 Adventure Publishing Group, Inc ®.

All rights reserved. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopying, recording any information storage and retrieval system, without permission in writing from the publisher. Printed in U.S.A. Subscription rates: $48 per year. THE LICENSING BOOK, THE LICENSING BOOK INTERNATIONAL, WORLDWIDE LICENSING and the “WLE” design, are trademarks and service marks of Adventure Publishing Group, Inc.® registered in the United States Patent & Trademark Office Postmaster: Send address changes to THE LICENSING BOOK, c/o Adventure Publishing Group, 307 Seventh Ave., Room 1601, New York, New York, 10001.

ADVERTISER INDEX 20th Century Fox ................................................................31 Activision .....................................................................10, 11 Adventure Publishing Group ..............................................139 Alita Friedman LLC............................................................117 American Greetings ............................................................59 ASPCA ............................................................................105 BBC .................................................................................140 Beanstalk ...........................................................................97 Blueprint ............................................................................95 Delta Children’s Products .....................................................79 Dracco...............................................................................49 Dreamworks .............................................................6, 7, 8, 9 Electronic Arts ....................................................................47 Energizer .........................................................................100 Entertainment One Family ...................................................75 Epic Rights .........................................................................71 Gateway Licensing....................................................121, 138 GM Licensing ...................................................................138 Harris-Sachs.............................................................123, 138 HBO ..................................................................................27 Hyperdesign ....................................................................131

138 • The Licensing Book

KidzBop .............................................................................73 Mars Retail.......................................................................109 Metro Trains Melbourne ......................................................67 Mind Candy .......................................................................43 Nickelodeon.....................................................................1, 2 Paramount .........................................................................35 Penguin Young Readers .....................................................119 Pennzoil .............................................................................99 Rubies Costume Company ...................................................85 Saban Brands...................................................................4, 5 Sakar.................................................................................51 Sesame Workshop ..............................................................45 Sony Pictures Consumer Products .........................................63 TGI Friday’s ......................................................................101 The Joester Loria Group.....................................................103 Tinderbox...........................................................................93 Uglydoll .............................................................................87 Universal Studios ..............................................13, 15, 17, 19

Summer 2014

The Voice Reaching Both Trade and Consumers

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