refers to the process that gives a company the right to use another’s brand name, patent, or other intellectual property for a royalty or fee through a written, legal agreement
Define licensor and list 3 examples of Licensors
the company or individual granting the license
ex: NFL, NASCAR, NCAA, UT – Austin
Define licensee and list 3 examples of licensees
the company or individual paying for the rights to use the licensor’s name or property
EX: EA – Electronic Arts, Reebok, Russell Brand
Define trademark, collective mark, registered mark, service mark
Trademark – symbol= ™ A word, symbol, or advice used by a person, generally a manufacturer or merchant, to identify and distinguish its good from those manufactured and sold by othersCollective mark A collective membership mark is any word, phrase, symbol or design, or a combination thereof which indicates that the user of the mark is a member of a particular organization. The owner of the mark exercises control over the use of the mark; however, because the sole purpose of a membership mark is to indicate membership, use of the mark is by members. Symbol can be a ℠ ™ or ®
Service Mark symbol = ℠ A word name, symbol, or device used to identify and distinguish a company’s services, including a unique service, from those of another service provider.
Registered mark – symbol = ® A mark registered in the United states Patent and trademark office
Define trade dress.
A particular type of trademark that protects the distinctiveness of the appearance and image of a good or service such as the NIKE shoe box, RainFOrest Café, or the ESPN Zone restaurants
What are the 3 P’s of Licensing?
Profit – Determine price points that will establish higher profit margins
Promotion – Merchandise does not sell itself
Trained sales staff and effective promotion are the keys to higher sales volumes
Protection – It is important to copyright or trademark all names, logos, or slogans associated with the product
Identify the 6 categories of licensed merchandise and provide an example of each.
Character – marvel Comics-Ironman
Corporate – specialty items such as pens, coffee mugs that have a company logo on them such as an office depot mouse pad often used as giveaways or corporate gifts
Fashion – Ralph Lauren, Michael KORS
Sports – Dallas Cowboys, Dallas STARS
Art – Van Gogh,
College – UT, Texas Tech, TCU, USC
Discuss 3 advantages for entering into a licensing agreement for a LICENSEE
Positive association brand awareness
build brand equity
Receive initial distribution with retailers
Expanded and improved shelf space
Ability to charge higher prices
lower advertising and promotional costs
Increased success and profitability
Connection with an athlete, sports team, entertainer, or corporation
Discuss 3 disadvantages for entering into a licensing agreement for a LICENSEE
Athlete, league, celebrity, organization or sport may fall into disfavor
Styles change quickly
Expensive Royalties and licensing fees
Manufacturing costs and risks
Competition drives up costs associated with licensing fees
Competition can have a negative impact on market share
Discuss 3 advantages for entering into a licensing agreement for a LICENSOR
Expansion into new markets
Increase brand equity
Enhanced company image and publicity
Increased profit from fees and royalties
Increased brand awareness or recognition
Discuss 2 disadvantages for entering into a licensing agreement for a LICENSOR
May lose some control over the elements of the marketing mix Poor quality,
negative perception of the licensor’s brand
What is the most important step for a licensor?
Register property as trademarks Take necessary steps to protect against counterfeiting –
Where does a licensor register their marks?
At the USTPO United State Trade and Patent Office
What are the three possible mark formats?
1. standard character format be used to register word(s), letter(s), number(s) or any combination, without claim to any particular font style, size, or color, and absent any design element. Registration of a mark in the standard character format will provide broad rights, namely use in any manner of presentation
2. stylized/design format – appropriate if you wish to register a mark with a design element and/or word(s)
3. sound mark
Where does a company go to see if a mark is currently registered?
The TESS system
What is the difference between a LIVE mark and a DEAD mark?
A live trademark registration means that the registrant has filed all necessary maintenance documents and the trademark remains viable. A dead trademark registration means that the registrant has not filed the necessary documents and the registration has lapsed.
Explain the licensing process for a licensee.
Pay licensing fee –
includes the ability to use specific logos, slogans or other trademarked images for use in the creation of company products
A complete business plan
A sample or drawing of the product
The costs of production and distribution
A marketing plan
The existing distribution channels for the product ( if applicable)
What are exclusive and non-exclusive categories? Explain the importance of categories for a licensee and licensor.
Exclusive categories are categories of merchandise that are manufactured by only one vendor/ manufacturer . Licensee prefer to be an exclusive vendor of a category – provides 100 % market share in that category and shuts out the competition.
Non-exclusive categories – are categories of merchandise that are manufactured by more than one vendor/manufacturer. Licensors prefer have more than one vendor of a category – provides competition to produce a quality product and keeps prices affordable for the consumer.
What is the CLC?
The Collegiate Licensing Company (CLC) is the trademark licensing affiliate company of IMG College and provides provided licensing services to its member institutions, licensees, retailers and consumers.
The use of a name, design, symbol, or a combination of those elements that a sports organization uses to help differentiate its products from the competition
Branding describes a company’s or event’s efforts
to develop a personality and make its products or services different from the competition
Identify 5 Branding mechanisms.
What are Slogans?
short, memorable catch phrases used in advertising campaigns designed to create product affiliations among consumers
Identify the 6 Characteristics of a successful brand.
Positive, distinctive and generate positive feelings and association
Easy to remember and pronounce
Logo is easily recognizable
Implies the benefits the sports product delivers
Consistent with the image of the rest of the product lines, organization, and/or city
Legally and ethically permissible
How does a company build a brand?
Through brand awareness, image, equity and brand loyalty
What is brand awareness?
the process of working toward maximizing recognition of a particular brand
What is brand image?
consumer perceptions linked to a particular brand such as health, excitement, fun or family
What is brand equity?
the value placed on a brand by consumers
What is brand loyalty?
consumer preference for a particular brand as compared to competitor products or services
Identify 5 Event branding opportunities.
Naming, Event Offerings
Promotions and Co-Promotions
Define corporate brand.
Represents an entire company or organization
Provide 3 examples of corporate brands.
Walt Disney Company
National Football League
Define product brand.
Represents a particular product of a company or organization
Provide 3 examples of product brands.
iPod, iPhone, iPad
Define store brand.
The products retailers sell as their own brands
Provide 3 examples of store brands.
GAP, ATHLETA, AMERICAN EAGLE
Define brand extension.
the use of a successful brand name to launch a new or modified product or service in a new market
Provide an example of Brand extension.
Dr. Dre’s beats
What are some benefits associated with the development of a strong brand? ( we discussed 3)
Strong brands have the power to create business value and impact more than just corporate revenues and profit margins Strong brands also create competitive advantage, command price premiums and decrease cost of entry into new markets and/or categories
Strong brands reduce business risk and attract and retain talented staff
the updating or creation of a new name, term, symbol, design, or a combination thereof for an established brand with the intention of developing a differentiated (new) position in the mind of stakeholders and competitors
Provide an example of rebranding
The Stars changing their logo, team uniform, and colors
What is Co-Branding?
the practice of using multiple brand names to jointly promote or market a single product or service
Provide an example of Co-Branding.
the Collegiate Licensing announced a partnership with Barbie for a co-branded, University-themed Barbie doll collection featuring Auburn University, The University of Alabama, University of Arkansas, and Louisiana State University.