TOTAL LICENSING
WANT TO ACQUIRE A NEW LICENSE?
DO YOUR HOMEWORK!
By Charles M. Riotto,
President
Autumn is a beautiful time of year in chance of attracting the interest of a you use subcontractors
International Licensing
New York. The air is crisp, the temper- major (or smaller) licensor. • Who the subcontractors are
Industry Merchandisers’
atures are comfortable and the leaves Assuming that your product is desir- • What quality controls are in place
Association (LIMA) are turning a myriad of colors. Unfor-
able to the licensor, you should be able • How good are your design skills
www.licensing.org tunately, I rarely get to enjoy much of to demonstrate that you understand
this first-hand since Autumn is also the and share the licensor’s vision for his In the licensing process, the licensor
time when most of the international brand or property, what it stands for, is not always the party holding all the
licensing shows and conferences are and how licensing can reinforce its’ cards. As a potential licensee, there are
held. unique qualities. a number of pertinent issues that you
Besides the annual LIMA-sponsored Beyond that, here is a checklist of the should be investigating when consider-
events in London, Munich, Tokyo and types of things licensors will want to ing a license, such as:
Shanghai, my travels this year also know about you: • Is there broad-based consumer
brought me to several relatively new • What is your reputation in the awareness of the property?
events scattered around the develop- marketplace, especially with key • Is the property unique or fresh?
ing licensing world. retailers? • Will the visual of the property
One occurrence that seems to be con- • Are your products of high quality help to capture the attention of
sistent from one event to the next is and do they meet all safety the consumer?
the fact that manufacturers are actively standards? • What other licensees have
seeking out LIMA to get information • Do you have a consistent history committed to the property?
on how to obtain licenses. of delivering on time? • Does the license fit within your
While this might not be notable in the • Do you provide good customer product line?
established licensing markets, I take it service? • Does the property have
as a very positive sign in the developing • Do you have proven skills in awareness with retail buyers?
regions where previously manufactur- executing promotions? • Does the property fit a desirable
ers would not hesitate to use intellec- • Is your company financially stable? and open niche for the retailer?
tual properties even if they had no legal • Do you have distribution • What is the potential shelf life of
right to do so. Although there is still a capabilities to the appropriate the property?
long way to go, it seems that recogni- retail and wholesale channels?
tion and respect for IP rights is starting • How well do you understand the Once you’ve gotten this far and have
to sink in which bodes well for contin- licensing business? made a connection with an appropri-
ued expansion of the licensing business ate licensor, it’s time to start negotiat-
on a global basis. Next, you should be prepared to ing the terms of the license agreement.
Accordingly, I thought I would take this provide the following: But that’s a conversation for another
opportunity to offer some insights on • Annual sales figures time. For now, it’s important to real-
what it takes to land a license for those • Proof of appropriate insurance ize that a well-developed and well-ex-
manufacturers who are new to the in- • Bank statements ecuted licensing program can be very
dustry. • Annual reports lucrative for you and your company.
So here are some common attributes • Product samples It’s not always easy to get to that point,
that licensors are generally looking for but understanding what it takes to get
when considering granting a license: You should also be aware of some of there will make the journey easier and
First and foremost, do you produce the key things that licensors will be in- help minimize potential disappoint-
creative and innovative products? quiring about: ments along the way.
Many small manufacturers often feel • Your credit rating
that they have no chance to acquire a • Your payment history
top-tier license. This is not always the • Licenses currently held (if any)
For more information on
case. If you produce a product that is • Licenses previously held (if any)
licensing issues and news,
new and different, is appropriate for • Financial success of current and
industry contacts, and licensing
the license being sought, and you can past licenses
events around the world, please
provide the right answers to the ques- • Whether your products are
visit LIMA at
tions below, you stand a very good manufactured in-house or if
www.licensing.org
112
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128