Licensing What is licensing A legal agreement that allows a company the right to use anothers brand name patent or other intellectual property for a royalty fee Why is Licensing Important Licensing generates income for sports organizations and entertainment events ID: 331398
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Slide1
Sports and Entertainment Marketing
LicensingSlide2
What is licensing?
A legal agreement that allows a company the right to use another’s brand name, patent, or other intellectual property for a royalty feeSlide3
Why is Licensing Important
Licensing generates income for sports organizations and entertainment events
Offers companies additional access to their target marketsSlide4
Licensing is
NOT
:
Branding:Branded items do not use another company’s trademark
Sponsorship:
When a company pays to affiliate itself with a team or event
Endorsement:
A company pays an athlete or team to promote its products by wearing or using themSlide5
Licensors
Licensor: the company that holds the rights to trademarked property
Examples:
The NFL
Virginia Tech
Pittsburgh PenguinsSlide6
Licensors
Types of SEM Licensors:
Sports Leagues
Individual Teams
Individual Athletes
Entertainment Companies
Individual EntertainersSlide7
Licensees
Licensees: The company that wants to manufacture and sell products using trademarked property
Examples:
Clothing (Reebok, Nike)
Video Games (EA Sports, 2K)Slide8
Who is the Licensor? Licensee?
Licensor: Minnesota Twins
Licensee: Watch ManufacturerSlide9
Who is the Licensor? Licensee?
Licensor: NBA
Kobe Bryant
Licensee: 2K SportsSlide10
Who is the Licensor? Licensee?
Licensor: Kentucky Wildcats
Licensee: Nike
Nike is licensed (given permission to sell”) items containing the Kentucky logo.Slide11
Licensed Products
ANYTHING
can be licensed
Key chains, banners, furniture, jewelry
Clothing
=
60% of all licensed sport merchandise sales
T-Shirts are the most popular item of all
ExampleSlide12
How Do Licensors Get Paid?
Guarantees:
The fee a licensee pays up front to use the trademarked property
Based on Expected Sales
Royalties
Percentage of the actual salesSlide13
Advantages
Disadvantages
Increased profits with little extra work
Low Risk
Free advertising
Build brand awareness
Loss of control over marketing process
Inability to:
guarantee quality
control prices
control where merchandise is sold
Licensor Slide14
Protecting Property
Trademark
Without a trademark, anyone could use your logo and profit from it
With a trademark, they are charged to use your logoSlide15
Protecting Property
Trade Dress
Refers to visual characteristics of a product or its packaging
Includes
Color schemes
Textures
Design, shape and placement of words, graphics and decorationSlide16
Trademark Infringement
The reproduction, copying, or counterfeiting of a registered mark
There is up to $1 Billion worth of counterfeit products each yearSlide17
Review
Answer on your own paper in
COMPLETE SENTENCES!
Once done, go over answers in class
What is licensing? Who is the licensor? The licensee?
How do licensors get paid?
What are the advantages and disadvantages of being a licensors?
Why is trading marking products and ideas important?