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ENGLISH/

Autumn 2013/O 2013

TOTAL LICENSING NEW EUROPE

Autumn 2013
2013
Publisher
Francesca Ash
francesca@totallicensing.com
Editor
Goran Kernyak
goran@totallicensing.com
Sales Director
Jerry Wooldridge
jerry@totallicensing
Editorial
Becky Ash
becky@totallicensing.com
Advertising Sales
James Ash
james@totallicensing.com
Subscriptions
subscriptions@totallicensing.com
Contributing Writers
Danny Simon,
Hamdullah Yalvak,
Pete Canalichio
Total Licensing
New Europe Office
Goran Kernyak
Business Development
Manager

Marijane Radev 4
HR-10000 Zagreb
Croatia
tel: +385 1 3865 564
mobile: +385 99 202 33 93
goran@totallicensing.com
Head Office
Total Licensing Ltd
4 Wadhurst Business Park
Faircrouch Lane
Wadhurst, East Sussex
TN5 6PT, UK
Tel: +44 1892 782220
Fax: +44 1892 782226
www.totallicensing.com
2013 Total Licensing Ltd
All illlustrations are reproduced by
permission of their owners.

FEATURES
Info / News......................................................6
[Licensing] Deals around the globe
Cover Story: Masha and the Bear..........18/22
An in-depth look at a Russian favourite
Sochi 2014................................................26/27
Licensed Food go to market
Buybrand Expo / Licensing Salon..........28/30
New licensing event in Moscow
FC Zenit licensing ..................................30/34
Sporty view of the work with the brand
10 years of Kikoriki ......................................31
Interview with Olga Kritskaya, Marmelad Media
Kazachok forum .....................................35/59

NEM - New Europe Market ...................35/59


Content industry have new favourite event
Exclusive Interview: SPLiCE..................36/40
Interview with Kimberly Kociencki Billoni, CEO
Brand Licensing Process Step by Step.......44
by Pete Canalichio, Brand Licensing Expert
Brand Licensing Europe..............................52
Overview of biggest licensing event in Europe
Turkey Special:
Market Overview...................................................60/64

Sindy in Turkey ......................................................63/67
Pricing of your IP material..................... 68/72
So, how much for that license overthere?

Welcome Willkommen Benvenuti Bienvenidos Mir se vini Pari yegak


Shchyra zaprashjem Dobro doli Vitame vs Tere tulemast
Kalos orisate Isten hozta Khosh keldiniz Aalzhy polyngar
Esiet sveicinati Sveiki Dobre dojdovte Witajcie Bun venit Vitajte Dobrodoli
Ho Geldiniz Laskavo prosimo Vtme t
mobrdzandit dvzlet dobredojde bine ai venit
Welcome to the Autumn 2013 edition of Total Licensing
New Europe magazine the ONLY magazine that specifically covers the licensing industry in Russia, the CIS,
Central and Eastern Europe.
Throughout 2013, Total Licensing New Europe will continue to bring readers information, insights and research
into the vast New Europe region. New Europe is term
which describes the region comprising 35 countries
with more then 500 million people and a highly growing
interest in brands and licensed products.
Launched in April 2012, Total Licensing New
Europe celebrate its 1st birthday and our Total Licensing flagship magazine is celebrating 10
successful years! With almost 100.000 readers
in 104 countries we can proudly say that the
Total Licensing group now consisting of 6 different editions - is the leading global publisher
of magazines specializing in licensing and merchandising.

2013
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Francesca Ash
Goran Kernyak
Publisher
Editor
francesca@totallicensing.com goran@totallicensing.com

Jerry Wooldridge
Sales Director
jerry@totallicensing.com

INFO

TOTAL LICENSING NEW EUROPE

GLOBAL PURSUIT TO REPRESENT ECO-BRAND


Global Pursuit Co Ltd, the worldwide consumer products licensing, marketing
and brand equity group, has been named as the exclusive licensing agent for
Cuipo, the international lifestyle brand and initiative dedicated to preserving
prime rainforest around the globe. Global Pursuit will represent the brand in
the United States and key territories throughout Asia, including Greater China,
South Korea, Southeast Asia and India.
Committed to saving the rainforest one meter at a time, Cuipo utilizes a
unique model for combining green education, brand activation and product licensing to raise awareness about the rainforest and deforestation. For every
Cuipo product purchased at retail or online, consumers can enter a produce
code at the companys website, www.cuipo.org, which is redeemed toward the
preservation of a meter of rainforest. Every square meter saved through the
purchase and redemption of a Cuipo product is then donated to One Meter at
a Time, a non-profit foundation dedicated to safeguarding and preserving each
square meter of rainforest in perpetuity.
The founders of Cuipo devised an incredible model that combines good corporate citizenry, eco-friendly product lines that offer strong consumer appeal
and an opportunity to reduce the carbon footprint of companies and individuals
in such a way as to protect and preserve natural resources for generations to
come, said CEO Cynthia Money in making the announcement. We look forward to developing a comprehensive licensing program for Cuipo
and are eager to introduce the Cuipo brand to potential sponsors and
licensees in the U.S. and territories
throughout Asia.
At present, Cuipo encompasses
three distinct sub-brands. Cuipo
Roots, a boutique apparel and accessories line appealing to the fashion forward eco-conscious consumer. Cuipo Kids, a premium childrens apparel and accessories line
which encompasses a variety of educational characters in a rainforest
setting. These characters include
Steve the Sloth; Cezar the Emperor Monkey, Farrah the Pink Puna Flamingo;
Tico the Toucan; Major Toma the Turtle; Hunter the Harpy Eagle; Sly the Squirrel
Monkey; Sampson the Sun Bear and his sidekick Coco, a coconut, and Howl the
Howler Monkey, who is the front man for the jungle band Van Howlen. Additionally, Cuipo Water, is a premium bottled water brand using 100% recycled plastic
bottles distributed regionally throughout the Western United States.
To date, Cuipo has developed over 70 licensed categories ranging from Sprout
biodegradable watches and SIGG reusable bottles to GUND plush toys and
Enesco giftware and home dcor items. The company has also collaborated
with the Surfrider Foundation, INT Surfboards, Panda Bamboo Bicycles, Prints
on Wood, Ubiquity Records, Nirve Bicycles and others on the development of
unique and dynamic co-branded apparel and goods that appeal to customers and
partners alike. The common thread among all Cuipo branded products is that
every item sold helps preserve prime rainforest around the globe.

VISIT THE TOTAL LICENSING


BOOTH No B055
AT BRAND LICENSING EUROPE
6

LONDON FOG BRAND


IN KARSTADT STORES
In a multi-year direct to retail agreement, Iconix Europe has announced
its first German partnership with
the iconic London Fog brand and
German department store Karstadt.
The partnership that is set to launch
in all 89 stores in late September
will bring the Classic outerwear
brand to German customers in a
collection of trench coats, padded
jackets, handbags and accessories.
The brand will be featured in 10
London Fog in-store concepts in
major cities, and is supported by a
high-level multi faceted marketing
campaign, featuring Alessandra Ambrosia as the face of the brand 2013.
Initially set to launch in ladies, there
are plans to develop the London
Fog brand into several other departments for 2014 onwards, including Mens & Kids.
Andrew Jennings, CEO of Karstadt
commented, I am delighted to be
launching London Fog - at Karstadt
for the Fall/Winter 2013 season. I
have had a long association with the
brand, and am confident that the
German customer will enjoy these
exclusive products as part of their
Karstadt shopping experience.
Angela Farrugia, Managing Director
of Iconix Europe continued, Iconix
Europe is excited to be entering the
German market with such a great
partner. Our business model allows
Karstadt flexibility whilst supporting them with targeted powerful
marketing in return. It is a fabulous
brand and Karstadt team have executed it perfectly.

TOTAL LICENSING NEW EUROPE



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INFO

TOTAL LICENSING NEW EUROPE

HENSONS FROG AND TOAD SIGNS LICENSES


Acting as the U.S. and Canadian licensing representative for the Arnold Lobel
childrens book series Frog and Toad,, The Jim Henson Company has signed the
first two licensees for the property in the U.S. - Yottoy, a hand-design toy maker
and manufacturer, and Clothworks, the textile company that designs fabrics for
quilts, clothes and crafts.
Written and illustrated by Arnold Lobel in the 1970s, each of the four Frog and
Toad books include five short stories chronicling the exploits
of a frog and his friend, a toad, simply named Frog and Toad.
Yottoy is respected for its creative interpretation of licensed
entertainment and character-driven properties. Producing
millions of units within the last 10 years, the company will develop Frog and Toad toys under its Classic Collection, which
features hand-designed toys based on characters from childrens literature. Clothworks, producer of cotton fabric for
independent quilt retailers, has designed a collection of Frog
and Toad Together fabrics based on the illustrations within
the Frog and Toad books for their broad range of fabric enthusiasts, quilters, garment-makers and crafters.
HarperCollins Childrens Books have entrusted us with introducing the cherished Frog and Toad characters to licensees in the U.S. and Canada for the first time, so we are looking for opportunities with distinct and unique licensees, said
Hensons Melissa Segal. The rollout of our licensing program begins with products based on the wonderful body of art from the original
classic books, and the unique hand-designed toys from Yottoy, as well as the
exceptional fabrics designed by Clothworks open the door to other products in
primary categories such as apparel, accessories, gifts, home furnishings and room
dcor, targeting both kids and adults through department and specialty stores.
The Jim Henson Company is also developing an animated feature film for Frog
and Toad.The books have sold more than 13 million copies to date and continue
to sell in excess of 500,000 copies annually for publisher HarperCollins. The
characters also inspired two claymation specials in the mid-1980s, directed by
John Clark Matthews and produced by Churchill Films.

LAZY TOWN
FRUIT&VEG
MONTH
In a major initiative supported by
the New South Wales Government,
250,000 primary school children
across the Australian state will
participate in a month long program
that is specifically designed to
educate them, and the community,
about one of the biggest problems
in the western world. Obesity and
diet related diseases are some of
the major burdens on the Australian
health system. The problem has
become so alarming that 1 in
4 children in Australia are now
considered overweight or obese.
Fruit&Veg Month was held in
schools at the beginning of
September. In a first for nutrition
health and education in Australia,
organiser Healthy Kids Association
has teamed up with childrens
entertainment brand LazyTown.
The LazyTown television series,
currently airing on ABC 4 Kids,
stars its creator, Magnus Scheving
as Sportacus, the athletic, superactive hero who leads by example
to inspire the residents of LazyTown
and its viewers to make healthy
choices.

ITV STUDIOS SIGNS MATT HATTER


APPAREL RANGE
ITV Studios has announced a major new UK licensed apparel deal for Platinum
Films boys property, Matt Hatter Chronicles. Licensed childrens clothing
company Smith & Brooks will produce a range of Matt Hatter-branded outerwear for boys aged 4 -10. The Matt Hatter clothing range will launch in Autumn/Winter 2014 across a wide selection of UK high street stores, specialist
outlets and online retailers.Trudi Hayward, SVP Head of Global Merchandising,
ITV Studios Global Entertainment, said, This licensed apparel deal with one of
the best-known and most respected names in the business is further evidence
of the fast-accelerating Matt Hatter Chronicles licensing programme. Matt
Hatter Chronicles fans will be thrilled at the opportunity to wear clothing
inspired by their hero and his adventures.
Mark Segalov, Managing Director, Smith & Brooks, said: The colourful, exciting
and dynamic designs inspired by Matt Hatter Chronicles lend themselves perfectly to boys apparel and we think boys will love the range we are bringing
out next year. We are delighted to welcome Matt Hatter Chronicles to our
portfolio of popular, high quality childrens properties. The Smith & Brooks
signing follows Platinum Films recent appointment of the Simba Dickie Group
as the master toy licensee. They join Penguin, Titan, Topps, TDP Aykroyd,
Character World, Trade Mark Collections, VMC and Pedigree in a rapidly expanding licensing portfolio for the Matt Hatter brand.

Eating habits formed in childhood


stay with us for the rest of our lives.
Children are influenced everyday by
their environment. Were privileged
to have LazyTowns support to help
spread our message. It is critical we
educate our children about healthy
food today, for the benefit of
Australia tomorrow, says Healthy
Kids Association CEO, Jo Gardner.

TOTAL LICENSING NEW EUROPE

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INFO

TOTAL LICENSING NEW EUROPE

VIRGIN GALACTIC LICENSED


Fluid World in the UK has been appointed by the Virgin Galactic licensing program to cover global territories outside of North America.
Fluid World will manage the licensing program from its London offices, while appointing subagents to oversee activity in localized territories outside of the UK.
Virgin Galactic, the worlds first commercial space line owned by Sir Richard
Bransons Virgin Group and Abu Dhabis Aabar Investments PJS, is in the final
stages of its test flight program, which should see the Virgin Galactic first full
space flight by the end of this year. Commercial operations will begin soon thereafter, when Sir Richard Branson and his family take off on the inaugural flight.
The global media coverage generated by that first flight will provide a platform
for the Virgin Galactic brand. Subsequent media activity, including documentaries,
reality competition shows, and concert events, will all serve to keep the brand in
the public eye. The licensing program will launch next Autumn and will cover all
major categories to further extend the Virgin Galactic brand.

APPAREL LINES FOR SONY COMPUTER


ENTERTAINMENT PROPERTIES
Sony Computer Entertainment Europe has announced details of a multi-property licensing agreement with Insert Coin, the leading name in video game inspired
apparel and accessories. Under the terms of the deal, Insert Coin has taken the
rights to develop products for a number of brands from SCEEs portfolio including the No. 1 critically acclaimed survival action title for PS3 The Last of Us, the
award winning God of War and Killzone franchises, 1990s cult classic rhythm
video game PaRappa The Rapper, Little Big Planet and the Sony PlayStation brand
which celebrates its 20th anniversary in 2014. Insert Coin has quickly gained a
reputation for being a game changer in the field of licensed apparel. The team
doesnt work from style guides preferring to let their direct experience of playing the games influence their product designs. The
result is a selection of unique products that allow
gamers to represent the games that they love in a
cool and subtle way that conveys taste and a sense
of style. The first SCEE licensed products are now
available for purchase. David Evans, European Licensing Manager, Sony Computer Entertainment Europe
says, Insert Coin has demonstrated a true passion
for our brands and have presented a new licensing
model that taps into the current trend for personalisation and provides a nice alternative to the literal application of licensed brands on apparel. Insert
Coins approach is very smart and were excited to
see the impact that it will have on our business.

10

FRIDERICO GATTI
JOINS MEGALICENSE
Friderico Gatti has recently joined
Megalicense, one of the leading licensing agencies in Russia. Formerly
Director of Rio Licensing and Rainbow in Italy, Friderico will be CEO
of Megalicense International, a part
of Megaliner Group.
For six years, Friderico Gatti held
the position of Commercial Director at Rainbow, the company that
created Winx Club. In addition, he
developed Hello Kitty, Maya the
Bee, Monsuno, Pocoyo, Babar and
other brands in Russia whilst at his
former position in Rio Licensing.
Commenting, Friderico Gatti sai,: I
found a perfect coherence of objectives and synergy in the vision and
the strategy on how to develop the
licensing business in Russia with my
new partners Zakhar Nazarenko
and Anton Grishin. I strongly believe
that our partnership is precisely
answering the expectations that licensors have for the successful development of their brands and their
business in Russia.
Anton Grishin, President of Megalicense, said, For us, being partners
with professionals at the level of
Friderico will help bring the services we offer to licensees and licensors to a new level. The new
partnership will lead services for
product development and will bring
new effective relationships between
Russian licensees/distributors and
experienced international manufacturers. Friderico will also be developing and expanding our Megalicense international business.

TOTAL LICENSING NEW EUROPE




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INFO

TOTAL LICENSING NEW EUROPE

THE SNOW QUEEN IS POPULAR


AMONG DISTRIBUTORS
Wizart Animation studio has concluded a number of successful business transactions regarding The Snow Queen feature film sales, and also started to sale
their new animation projects The Wolves and The Sheep and The Snow King
in Cannes. During the Cannes Film Market, Wizart Animation made a deal with
Vertical Entertainment company to screen the film in USA.. Wizart Animation
team created an amazing story for all generations, says Rich Goldberg, a representative of Vertical Entertainment One of the best films weve ever seen
on the market. We are happy to have this transaction made and be able to show
this film in the USA.
A film release agreement with a Swiss
company Ascot Elite Film was signed
to release the film in Germany. Moreover, Cinestar, the biggest cinema
network on the territory of former
Yugoslavia will release the film in December. The film will also be screened
in Hungary and Bulgaria. The Snow
Queen distribution deal negotiations
are still on in China, Spain and Latin
America. After a successful launch of
the first studio film in South Korea,
Israel, Turkey and Brasil, distributors
have shown a great interest to new
companys projects, pre-sales stage of
which began in Cannes. The Snow King is a follow-up of the first studio project The Snow Queen, that was released internationally in December, 2012. The
Snow King movie as well as the first one is produced by Timur Bekmambetov.
Audience will see the next part of the Orms story, who has become a trolls
hero after his victory over the Snow Queen. But thats not enough for him and
he is exaggerating his own merits and adventures, he is cramming. What does it
lead to? A funny and dangerous experience will help Orm to understand that he
cant get friends, happiness and true love by trickery.
An American scriptwriter Neil Landau was involved in working at the The
Wolves and The Sheep project. Neil Landau won a Goya prize (Spain) for the
best script adapted to a film Las aventuras de Tadeo Jones. The Wolves and The
Sheep is a story about a young wolf, which wakes up as a sheep one morning.
The film producer Sergey Seliyanov said: We have a wonderful story, that all
people of all ages can understand; we have a strong team of producers, consisting of Russians and Americans; we have a strong casting, which will have to sell;
we have a strong production team, which created The Snow Queen and we have
money. Actually we have everything. The Wolves and The Sheep are attracting
me both as a producer and as a filmgoer. Im happy to be a part of this project.

THE WOMBLES
MAKE A COME-BACK
UK-based Wombles Copyright
Holdings and Dramatico Entertainment have recently revealed their
plans to relaunch the iconic British
brand, The Wombles.
Dramatico Animation is set to produce a new 52 x 11-minute series
for Channel 5s Milkshake block in
2015.The animation will be available
to view at MIP Junior in Cannes in
October. In addition, Dramatico has
also appointed Genevieve Dexter of
Serious Lunch as co-executive producer with Mike Batt, who wrote
and sang all the Wombles original
songs back in teh 1970s when the
character first launched. Dexters
role includes raising US$7.7 million
to fund a variety of media, in addition to the series, and to source UK
and international partners for the
exploitation of ancillary rights. The
multi-platform re-launch will also
include an online Wombles World
interactive experience , a live-action/CGI feature film, promotions
and merchandising, and a Wombles
pop group tour to be announced.

LAZYTOWN AT MOSCOWS OPEN AIR EVENT


LazyTowns Sportacus and his sidekick Stephanie made an appearance at Moscows Open Air Event hosted by Russias
leading childrens TV Channel, Karusel. The event, which took place on 1st June 2013 at the All-Russian Exhibition
Centre, attracted over 700,000 visitors and reached a further 51 million children and their parents through the live TV
broadcast on the Karusel channel. The shows sporting hero Sportacus delighted the crowd with his performance of
flips, somersaults and his signature sidekicks. As his young fans mimicked his warm-up moves, Sportacus advocated that
everyone can be a superhero if they eat fruit and vegetables, known as Sports Candy in LazyTown, and drink plenty of
water and practice. Visitors to the event had the opportunity to meet and greet Sportacus and Stephanie and have their
photo taken with their TV heroes. They were also issued with a Superhero Passport both a keepsake and a means to
be rewarded with a surprise from their parents or carers once they fulfill the passport mission of eating 5 Sports Candies a day. A Turner-owned franchise, LazyTown is the only global preschool brand dedicated to encouraging children to
be active and healthy by providing them with entertainment that echoes these core values in a fun way.

12

TOTAL LICENSING NEW EUROPE

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13

INFO

TOTAL LICENSING NEW EUROPE

THOMAS & FRIENDS GO TO MEXICO


HIT Entertainment has recently announced that personality and actress Galilea Montijo
has signed on to represent the
Thomas & Friends brand in Mexico. The announcement follows
the launch of the new Thomas
Facebook and Twitter pages
dedicated to reaching parents
in Mexico, and the launch of the
Thomas & Friends television series on Televisa.
Montijo will support the new Friends to Grow (Amigos para Crecer) campaign
in the region and will also endorse the brand via Twitter and Facebook. She
recently hosted a Thomas & Friends fun day and story time at the Museo Tecnolgico in Mexico City and more than 100 children attended.
Televisa launched Thomas & Friends last November three days a week and the
series rated amongst the top ten childrens shows for ages four to twelve.
This November,Thomas & Friends will celebrate the release of its newest movie,
King of the Railway, titled El rey de las vas in Spanish, with a premiere in Mexico
City that Montijo plans to host. The Blue Carpet premier will be the final destination for Thomas as he celebrates the King of the Railway movie around the
world in stops including London, Los Angeles and Toronto.

MOVIESTAR STATIONARY
The online tween hit, MovieStarPlanet,
has partnered with Scandecor to launch a
back-to-school range in time for the start
of the new school year. This new partnership was established through Beanstalk,
who have been working with MovieStarPlanets licensing program since 2011.
This year, MovieStarPlanet has reached over 100 million registered users
around the world.This new partnership with Scandecor is designed to further
propel MovieStarPlanet into the physical world and offer fans products to use
at school.
The new MovieStarPlanet products include posters, greeting cards, stationery
sets, folders, desk mats, water bottles, lunch boxes, book labels, pencil cases
and much more. All these products can be purchased across the Nordic region in stores such as Bog & Id in Denmark, Barnes Hus in Sweden, NorliLibris in Norway and Prisma in Finland.
MovieStarPlanet has been working hard on expanding its licensing range. We
are extremely happy to be adding a back-to-school range to our existing licensing portfolio said Claus Lykke Jensen, CEO and Founder of MovieStarPlanet. MovieStarPlanet the game, is all about encouraging creativity and we
believe this range of products developed with Scandecor will now allow tweens to be creative in the classroom, at home and with friends.
Lotta Andersson, Scandecors Product and Licensing Manager is also excited about the partnership.
Partnering with MovieStarPlanet seemed like a natural step for Scandecor said Andersson. We believe
MovieStarPlanet is a strong license and the target age
group is perfect for our products. In fact, the success
of sales has resulted in many-reorders across the region which is very positive to see.

14

NEW MOFY
SEASON IN
PRODUCTION
Sony Creative Products Inc in Tokyo,
together with Italys Rai Fiction, Misseri Studio and ZDF Enterprses have
agreed to co-produce the new series of Mofy, and have already begun
production on the 26 x 5 minute episodes. The new season is scheduled
for completion in end 2014.
The Mofy series was created by Misseri Studio, who are famous for their
stop frame techniques. What makes
Mofy outstanding compared to other
stop frame animation is the unique
element used in the animation - cotton puffs. Not only the characters,
but everything that viewers will see
in the animation is entirely made
from cotton puffs. Among different
trials with various materials, cotton
was chosen to best depict the soft
and warm world of Mofy.
Since its announcement, Mofy animation has attracted the attention
of major broadcasters around the
world. The first series has been sold
to NHK Japan, France Television,
ABC in Australia, RAI in Italy, ZDF in
Germany, EBS in Korea and Karusel
in Russia. By the end of 2013, the series will launch in over twenty countries. Season 1 was selected at the
Annecy Film Festival 2013, and also
won Best TV Series for Preschool
at Cartoons on the Bay earlier this
year. Merchandising and licensing demands are also growing. Mofy products have already launched in Asian
countries such as Japan, Hong Kong,
and China. The best sellers are plush
toys whilst stationery and digital
accessories are also popular. Mofy
merchandise will launch in parts of
Europe this Christmas.

TOTAL LICENSING NEW EUROPE


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15

INFO

TOTAL LICENSING NEW EUROPE

MAYA THE BEE FLIES IN NEW EUROPE


Studio 100 launched Maya the Bee, the popular childrens CGI animation series in the Czech Republic.The new Maya series
began airing on CTVs new kids channel CT:D on 2nd of September 2013 daily on weekdays with reruns each morning.
The series is broadcast during the popular prime-time show Kouzelna skolka.
The CGI series, produced by Studio 100 Animation is a modern reworking of the classic Maya the Bee, which sees Maya,
the central character, breaking free of the hive to seek adventure in the big, wide world.With her friends Flip and Willy she
explores a world steeped in mystery, with magical encounters around every corner.
The CG1 Maya the Bee has already been sold into 134 territories worldwide, including countries within New Europe.
Its international presence continues to grow. Broadcast
partners In Central & Eastern Europe are TVP 1 and Mini
Mini in Poland; Ceska TV in Czech Republic; OTO and Pop
TV in Slovenia; RTVS1 in Slovakia and M2 in Hungary. In Turkey, the broadcast partner is high rating childrens channel
TRT Cocuk. In 2014, a feature film Maya the Bee - Movie
in stereoscopic 3D will also launch in cinemas worldwide.
The classic Maya the Bee series was launched in 1975, based
on the first Maya book written by Waldemar Bonsels Maya
and her adventures. The loveable character has been popular all over the world and loved by TV audiences (children
aged 2-6 and parents) for the past 35 years.
Over the past 10 years, the classic 2D series has been
broadcast by 136 TV stations in 120 countries.
The success of the brand is evident, with over 300 licensees worldwide covering all major categories and 1300 products
developed in 2012 alone - new products will also be at retailers this year.
In the Czech Republic the licensed product range includes Maya plush and cushions, a Maya memo game, cup, bath toys,
placemat, stamp set, ironing beads all by Studio 100, a calendar (Presco group), milk bar & dessert with surprise (Dairy4Fun), rugs (Associated Weavers). And from September, more Maya the Bee branded products hitting the shelves at retailers across Czech Republic.
Evy van Nederkassel, Licensing & Sales Manager says: We are delighted with the continued success of Maya the Bee
animation series; the new CGI format gives the series a fresh modern look, while keeping alive the gentleness and colourful playfulness of the original. We are delighted that audiences in Czech Republic also now have the chance to view this
fantastic series.

WOOLLY AND TIG IN NEW RAVENSBURGER DEAL


Woolly and Tig, the UKs CBeebies pre-school property has recently announced a new deal with Ravensburger for
puzzles and jigsaws. The deal was done by Brands with Influence, and adds to the growing list of British licensees which
includes Golden Bear, Random House Childrens Publishing, Abbey Home Media, Cooneen and Alfred Franks Butler.
Talking about the deal Helen Doherty of Tattiemoon, the production company, said: We are delighted to be working
with Ravensburger, they are an absolutely brilliant company and produce really great quality products. Having seen the
amazing sell-through on Golden Bears toys I am sure this is going to be a success.
Woolly and Tig toys and videos have
been on sale across the major multiples and high street stores, as well
as major online retailers since April,
and the initial demand has outstripped
supply with new product being fast
forwarded into stores.
Tim Hall, MD of Ravensburger UK
said, Woolly and TIg has been doing
incredibly well at retail and we can see
the long term potential in this exciting
new brand.We look forward to developing an exciting range of products to
complement the licenses already out
there.

16

TOTAL LICENSING NEW EUROPE

From Russia
With Masha
How a cartoon series became one of the strongest brands
in Russia and Eastern Europe

Masha and the Bear is the first Russian animated series which has the
potential to speak to families all over
the world. Released in 2008 by Animaccord Animation Studio, the brand
becomes more recognized and in
demand year by year.
According to research carried out
by Kidz Global in 2013, Masha and
the Bear is the most popular brand
amongst girls and boys aged 3 to 9,
and is one of the leading brands for
other audiences including 7-9 year
olds and 10-14 year-olds. The generation who watched the first episodes
on TV (the series started airing in
2009 on a primetime slot show
Spokoinoy nochi, malyshi) are
continuing to follow each
new episode and are interested in consumer products aimed at their age.
Based on humor and
kindness, Masha and the
Bear, created by Oleg Kuzovkov, is a brand that has
great appeal to audiences.
Since the main character, Masha,
is a modern child, all the educationalists stay away. While she cant sit
still interfering in everything
and making it all her business, the Bear lets Masha be
herself. Thanks to all-round
humor, and original catchy
music, each seven - minute
episode sends an important

18

message: a modern child needs to be


given the freedom of expression and
creation and be helped to put her
energies to proper use.
The high-grade animation quality,
controlled by a professional team, has
placed the studio among the strongest in Europe. Every child knows the
original soundtrack comprising both
musical themes and songs.
As a result of all these advantages,
Masha and the Bear is a family show
that appeals to everyone and stays up
to date no matter when.

Masha and the Bear is a real phenomenon within the digital content
market, achieving success without any
advertising investment. One of the
episodes, Laundry Day, became the
most popular video on Russian YouTube in 2012, surpassing the worldleader Gangnam Style. Nearly 36.5
million views in December increased
to 86 million within seven months.
According to Google Analytics data,
the episode is also very popular
amongst men from 35 to 44 years
old. One more fact that summarises
the series success: Recipe for Disaster racked up 100,735,000 over
an eighteen-month period. Thanks to
the rare genre of clownery, the plot is
easily understood by everybody - that
is why the Masha and the Bear YouTube channel is in demand in the
USA, Germany, Turkey, UK, France,
Lithuania, Argentina, Brazil,Vietnam and Thailand.
Take a look at the facts:
Laundry Day became the
most popular video on Russian
YouTube in 2012;
Picture Perfect achieved the
Number 2 position on the YouTube ratings in 2013;
Masha and the Bear is the
absolute leader in the largest
search engine in Russia Yandex (7,869,853 requests per
month)
In fact, the KidzGlobal report

TOTAL LICENSING NEW EUROPE

Masha and the


Bear is the most
popular brand
amongst girls and
boys aged 3 to 9,
and is one of the
leading brands
for other audiences including
7-9 year olds and
10-14 year-olds.
shows that Masha and the Bear is
well-known in China (37%), Malaysia
(30%), Poland (25%) and many other
territories, where the series is not
broadcasted yet.
Games and applications featuring
Masha achieve top ratings in the AppStore and Google Play, being uploaded more than 775,000 a year. Based
on augmented reality technology, the
game Masha in Town allows players
to create an interactive series.
An arcade game, where Masha flies
around on a balloon and saves forest
dwellers from trouble, is planned for
release this Fall. Its a complicated
task to create a worthy and understandable arcade game for children,
but we have succeeded said Maxim
Kochurin, Manager of the mobile apps
development team of Apps Ministry.
Masha and the Bear is more than
just a well-known brand, but so far it
lacks a good wide-scale game. We aim
to correct that and provide a game
that will be appealing to everyone both adults and children. Another
premier this Fall was the launch of
the multilingual developmental gaming
portal.
In 2012 a spin-off series - Mashas Fairytales - was released. It is aimed at
children aged from 2 to 6. The 6-minute episodes combine 3D CGI and
traditional 2D animation and feature

Masha retelling well-known fairytales,


adding her own unique twists to the
stories. Confusing plots and characters, Masha finishes each episode with
an unexpected and witty moral. The
spin-off series was a success and has
been broadcast since February 2012
on the Karusel channel and released
on DVD. The first episode uploaded
on YouTube has been viewed 11 million times in the last 6 months. The
main goal of the series Mashas Fairytales is to maintain the popularity of
the core Masha and the Bear series
as well as creating a sequel featuring
the main character Masha, where we
see her in a whole new light.
Moreover, the simple process behind
the animation of Mashas Fairytales
enables an increase in the overall
animation content featuring Masha
in a comparatively
short period of
time. From a licensing point of view,
Mashas Fairytales
is seen as a separate franchise that
has great potential
and proven success
for the developers of the games
and applications
for mobile devices
thanks to its simple
2D Flash graphics.

Several foreign broadcasters have


expressed interest in the project.
In a matter of a few years, the animation project was able to turn itself
into a strong full-scale brand amongst
pre-school franchises. The licensing model of the project is one of
the most effective and successful in
both the Russian Federation and CIS:
the brand has built a relationship
with over a hundred licensees and is
present in over 50 different product
groups. The total turnover of licensed
products reached $100 million US in
2012. This allowed Masha to become
the first Russian brand to be listed
along such successful and recognizable brands such as Mickey Mouse
Club House, Peppa Pig and Miffy &
Friends.
The brands goal is to constantly

19

TOTAL LICENSING NEW EUROPE


increase both the quality
of the product and levels
of cooperation with
partners who really
appreciate Mashas uniqueness
and who can
provide a high
level of product
awareness. The
brands growing popularity
is supported
by such strong
players as Ferrero, Perfetti van Melle,
Panini Group, Egmont
International, Rosman, Nordisk Film, Ministry of Sound,
Metro, Sela, Simba Toys,
Grand Toys, Art-Design,
Alfa-Studio, 1C Softclub
and others.

Profile of
Masha and the Bear
Target Audience:
Children 3-9 years
of age
Episode length:
About 7 minutes
Every episode has a
stand-alone plot

Thanks to the growing


popularity, leading international
companies continue to partner with
the Masha and the Bear brand to
launch their products in Russia and
CIS. By way of illustration, after several successful promotions featuring the
characters from the series, Ferrero
MPG reached a decision to release
the first Russian line of toys as part
of their Kinder Surprise range. A ma-

jor event of the new school year was


the release of the Masha and the Bear
collectible sticker album published by
Panini Group.
The main characters of the series
were chosen as the symbols of the
International Martial Arts Games that
will take place in Saint-Petersburg
from October 18 to 26. The Masha
and the Bear series has an enormous
following, said Pavel Zhuravleb, the
Head of the Committee of the International Martial Arts Games 2013.
Its an ideal example of the relationship between an adult and a child, a
teacher and his pupil. The decision
to work with the series attracted the
attention of both young viewers and
their parents towards the upcoming
competition and, as a result, towards
martial arts and sports in general.
Masha and the Bear became the first
Russian brand in history to be showcased at the main international licensing tradeshow, Licensing Expo 2013,
that took place in Las Vegas on June
18-20. It created significant excitement amongst international distribu-

tors, manufacturers and agencies and


became one of the most memorable
assets of this years event.
Even the first day of the Expo
showed how vast the interest is in
our brand, said Dmitriy Loveiko, the
General Manager of Masha and the
Bear. Having heard about this Russian phenomenon, participants from
foreign markets came to introduce
themselves and offer to collaborate
with us. Countless guests passed by
our stand and stayed to watch several episodes till the very end. The
launch of the brands international
licensing program can be summed up
as a definitive success as a number
of important and potentially profitable agreements and preliminary
agreements were reached during the
Licensing Expo.
Solid proof of consumer product
sales ability;
Award-winning Brand of the Year;
DVD sales totaling 1.2 million in
2012;
4.7 million books and 1 million magazines printed throughout 2012;
Over 1500 SKUs;
The first local brand used in Kinder
Surprise toy collections in Russia,
Ukraine and Kazakhstan;
Nutella and Kinder Mix promo
campaigns launched in Ukraine with
great results.
Being a strong pre-school franchise,
Masha and the Bear is broadcast in

20

TOTAL LICENSING NEW EUROPE

Masha and the


Bear licensing
covers more than
50 product
groups and, in
2012, generated
retail sales of
$100 million.
16 countries: Ukraine (Inter, 1+1),
Denmark (DR), Germany (KIKA),
Switzerland (RTS), France (France 5,
Canal+), South Korea (Tooniverse,
EBS), Indonesia (R ANTV) and others. In response to growing demand,
Animaccord Studio has dubbed and
fully adapted the series into English,
Spanish and French.

Find
Masha and The Bear
at
MipCOM
> Booth R28.12<
&
BLE 2013
> Booth D080 <

Thanks to partnerships with such


licensing agencies as Ink Brands, Lisle
and UDC, product lines with Masha
continue to appeal to consumers in
childrens markets ourside Russia/CIS.
Animaccord Animation Studio has
created an extraordinary project that
has the potential to become a transcultural hit, infecting everybody with
waves of kindness, music and humor.

Follow us!
www.youtube.com/user/MashaMedvedTV
www.facebook.com/MashaAndTheBear
www.vk.com/MashaMedvedTV
www.twitter.com/MashaAndTheBear
www.mashabear.com | www.animaccord.com
129075, 22A Murmansky proezd, Moscow
info@animaccord.com

21

TOTAL LICENSING NEW EUROPE

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TOTAL LICENSING NEW EUROPE





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TOTAL LICENSING NEW EUROPE

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TOTAL LICENSING NEW EUROPE


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!
www.youtube.com/user/MashaMedvedTV
www.facebook.com/MashaAndTheBear
www.vk.com/MashaMedvedTV
www.twitter.com/MashaAndTheBear
www.mashabear.ru | www.animaccord.ru
129075, , 22
info@animaccord.com

25

TOTAL LICENSING NEW EUROPE

Sochi 2014 Licensed Food Products Go On Sale

A wide range of Sochi 2014 licensed


food products have gone on sale
throughout Russia. These include
chocolate, ice cream, sushki (dried
tea bread rings), sunflower seeds,
cookies, gum drops and even for
the first time in the history of all
Winter Olympics licensing programs
baked goods. Altogether, more than
100 name-brand products have been
rolled out for purchase at more than
200,000 retail sales locations from
small grocery stores to large shopping
centers all over Russia. Edible products bearing the Olympic symbol have
become a real hit of the Sochi 2014 Licensing Program since sales began and
consistently enjoy high demand among
consumers. Children and adults alike
are unable to resist the tasty treats in
bright packaging. For example, a total
of roughly 1 million Sochi 2014 candy bars and nearly 1 million packets
of sunflower seeds, peanuts and mini
candy bars with nuts and cranberries
have been sold in packaging designed
to look like Olympic T-shirts.
The line of licensed sweets satisfies
even the most demanding consumer.

26

For instance, Sweetexim is issuing


jelly beans, chewy
candies, caramels,
gum drops, cookies, hematogen, as
well as packaged
candy gift sets. In
late August, Sochi
2014 chocolate
eggs and chocolate balls went on sale. Collectible
3D-toy figurines of the mascots of the
Sochi Olympic and Paralympic Games
are being offered as surprises. And in
September, New Year Sochi 2014 candy sets are going on sale. These make
great gifts not only for business partners, but also for young sweet tooth
sports fans. New Year gifts in the style

of the Sochi 2014 Olympic Winter


Games are filled with sweets: chocolate and chewy candies, gum drops,
caramel on a stick, vitamin-enriched
jelly beans. Every gift contains an indispensable collectors Olympic mascot.
The unique Vanilla Light ice cream flavor from Baskin Robbins released specially for the Games in Sochi will offer
not only a delicious, full-bodied flavor,
but also keep you fit! It contains 50%
less fat and 20% fewer calories than
ordinary cream varieties.
Another official licensee, Ozersky
Souvenir, has developed and launched
an exclusive collection of chocolates
in the style of the Sochi 2014 Winter
Games brand. The chocolate cubes
contain only natural ingredients with
no artificial colors or flavors. And
young consumers are in for a real surprise childrens chocolates in colorful packages with pictures of the Sochi
2014 mascots. Children will find interesting stories about the mascots on
the boxes of chocolates, and another

surprise for them will be a series of


stickers with the mascots playing various winter sports.
Very popular among consumers are
delicious and original products from
the Moscow Nut Company. Candy
bars, nuts and sunflower seeds in colorful packaging in the form of T-shirts
with Olympic designs are hit sales
items. Everyone also relishes delicious
milk chocolate gold medals in particular, medals on a ribbon in the colors
of the Russian flag.
The Sochi Games will also have official,
licensed backed products. The Sochi
Bread-Baking Complex will offer residents and visitors of the Olympic city
fresh bread, pastries, gingerbread and
bagels in packaging bearing the Sochi
2014 symbol. In the near future, gingerbread and sushki
will be sold in the
same packaging.
The
Organizing
Committee continues to select licensees in other openings
in the food products category such
as sausage products,
honey, etc. You may find a list of openings and submit a bid here: http://www.
sochi2014.com/team/licensing/.
The Sochi 2014 Licensing Program was
launched in February 2009. Within 5
years, licensees will release around 5,000
items of merchandise with the unique
mark and brand. Total sales of official Sochi 2014 products at selling prices of the
licensees may total over $500 million. Direct revenue for the Sochi 2014 Organizing Committee from Licensing Program
sales may exceed $30 million.

TOTAL LICENSING NEW EUROPE





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27

TOTAL LICENSING NEW EUROPE

LICENSING SALON will launch in


Moscow, Russia within the framework
of BUYBRAND - the International
Exhibition on Franchising, Investment
and Partnership opportunities. The
show takes place on October 2-4,
2013.

opportunity for licensing in Russia to


spread far beyond childrens market.
Licensors and agencies, represented
at the Expo will be able to meet new
partners not only among participants
but in the midst of attendees as well,
who represent small and medium
businesses, manufacturers, (non-fran-

Recently big chains are paying close


attention to licensing, said Ekaterina
Soyak organizer of the exhibition. Licensing in Russia is at the dawn of its
development and with estimates that
there will be 15-20% annual growth.
There are a few licensing events that
take place in Moscow already, but
they are mostly local and concentrated around the market of childs goods
and services. Our Licensing Salon
will be oriented on various types of
business, such as publishing, entertainment, fast-food, retail and others.
Having started as the first Russian
franchise exhibition in 2003, Buybrand
Expo is now one of the biggest business platforms in Eurasia. The exhibition is one of the top 5 in the world
franchise events bringing in more
than 220 business concepts and over
8000 investors. Leading foreign and
domestic brands choose Buybrand
Expo as the ground for development
not only in Russia but also in the Baltic states, the CIS countries, countries
of Eastern Europe and Asia.
The organizers of Buybrand Expo believe that Licensing Salon will become
one of the key events in Eastern Europe. This confidence is based on the
fact that almost all Buybrand Expo
exhibitors are potential licensors
and licensees from different spheres
of business, including fast-food, retail
and service chains. This creates the

28

chise) chain owners and others.


The Business Forum part of Licensing
Salon will begin with a Roundtable
discussion entitled, International
experience and Russian practice
of licensing. Within this framwork,
the following topics will be covered:
Basics of licensing: what is what; the
World licensing market:
history, structure, trends
and players;
Licensor and
licensee collaboration
- benefits and
risks from
both points
of view; Licensing from
the consumer

viewpoint; and a look at the types of


licensing brands and key principles of
working with them.
Among the speakers at the roundtable are Elena Evseenkova, head of
licensing products development at
STS Media, Andrey Ivashkin,Vice president, Head of Retail at Disney Russia,
Francesca Ash, Editor, Total Licensing
and others.
The comprehensive Business Forum will also highlight the following
themes; Law and the ideology aspects
of celebrity licensing; The advantages
of Life-style brands; The collaboration between retailers and licensors;
A franchisor as a licensor; How to fit
licensing to your own business and
a number of other key topics. The
speakers will be Russian and overseas
experts with significant experience in
licensing.
For anybody looking for opportunities to expand your brand, welcome
to the Moscow Licensing Salon at
Buyband Expo.
For more information,visit:
www.buybrandexpo.com

TOTAL LICENSING NEW EUROPE

BRAND EXTENSIONS RUSSIA


EXPAND THEIR PORTFOLIO
Brand Extensions Russia JJP is a
licensing agency focused on bringing some of the major names in the
world to the vast Russian market
through branding and licensing programmes.
Formed by respected European
licensing companies JELC and PJB
Brands, Brand Extensions Russia JJP
is less than two years old, but is built
on decades of licensing experience
experience that has already given
BER a strong presence in this massive
market.
Not only have BERs founding partners successfully introduced many of
their existing portfolios of brands to
Russian licensees but their expertise
and marketing insight has also attracted some major US and international brands. Already making inroads
into this immense and developing
market with Pepsi, NBA, The Very
Hungry Caterpillar, Forever Friends,

Royal County of Berkshire Polo Club,


Gem Fairies, Turizmo, My Cat Pip,
Lillipippins, and The Little Prince, the
company is expecting to expand its

portfolio further in the coming


months.
But this success didn't happen overnight. Before, and even after, BERs
arrival in the Russian market the
partners carried out in-depth market
research on manufacturers, licensees
and distributors, consumer buying
habits, and the retail environment.
And this strategy has paid dividends,
with multiple licences signed across
the whole BER portfolio in such areas

categories and excellent TV ratings.


The new digital presence has also
increased Winx visibility. The Russian website attracts more than
3 million visitors per year and 22
million page views.

WINX CLUB AT BUYBRAND


Russia is the most profitable market
for Winx Club, generating around
80% of the total consumer products
business turnover. The brand enjoys
very strong awareness and is still the
number one kids brands (boys and
girls) with more than 50% of market
share in terms of consumer products
units in the market. It also represents
a lifestyle brand for girls thanks to
the successful fashion collection
which reaches not only under 10s
but also tweens and teens.
Winx Club has a full coverage of
consumer products under the various

Rainbow Russia has a number of


major projects in the pipeline for
2014. These include the launch of
the new 6th series both on CTC
and Nickelodeon channel; the
release of the 3rd movie in 3D
from October 2014 (the Russian
back-to-school period); new live
events including Winx on Ice and
a new musical; and the opening of
new Winx fashion stores in Moscow
and other regions, as well as theme
parks in collaboration with local and
international partners.
Rainbow is amongst the leading
exhibitors at the Buybrand Expo,
where they will present new business
projects designed to contribute to
and consolidate brand success and
power in the market. These include
the franchising stores, theme parks
and the development of the family

as publishing, stationery, ceramics


and housewares, apparel, toiletries
and bags. Popular girls brand Gem
Fairies in particular has already been
signed up in multiple
categories with
more pending as
well as many other
deals across the whole
portfolio.
This wide-ranging success across numerous
categories reflects
BERs international expertise in diverse consumer products
and categories, as well as the strength
of the company on the ground. That
strength has been underlined by the
launch of a website (http://www.
berussia.ru) and the appointment
as Licensing Manager in Moscow of
Marina Semenikhina. Marina brings
more than ten years experience of
marketing, licensing and sales within
the Russian market to her role.
BER is exhibitor at Buybrand Expo.

entertainment centres.
Marco Angeletti, Head of Rainbow
Russia, commented, Rainbows presence at the BuyBrand Expo as one
of the top exhibitors, just confirms
the huge potential for our brand to
support the large projects that the
Russian market is looking for nowadays to satisfy the demands of kids
and families.

BUYBRAND Expo is 10,000


sqm of exhibition space
with more than 220 business concepts, investment and partnership
solutions from around the
world.
The Congress (business
program) comprises 35
speakers and more than
700 participants and, in
terms of visitors, the show
is expected to attract
more than 8000 Russian
and overseas companies
looking for business partnerships in the region.

There is also a lot of activity planned


on the marketing side, with a strong
calendar of initiatives planned to
celebrate the Winx 10th anniversary
in 2014. A host of events and partnerships will strengthen the brands
following and Rainbow is organising a range of promotions involving licensees across all categories.
Rainbow is also working with major
Russian retailers to create Winx Club
permanent areas in shops, which will
not only to increase the propertys
presence in the market, but will also
engage and entertain kids and families
in-store thanks to weekly entertainment activities.

29

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Sporty view of the work with the brand


will be heated with major sporting
events to be held in our country in the
near future - the 2014 Winter Olympics and the FIFA World Cup 2018.

Ilya Slutskin, head of licensing projects


at FC Zenit, has shared his views on
licensing activity in Russia with the
editors of BUYBRAND Inform.
How do you see the development
of Russian licensing market in the
next five years? What are the major
trends?
IS: In my view, the outlook for the
Russian market is very optimistic. The
market is clearly not saturated and
many of the manufacturers have yet to
discover the benefits of a well-known
brand. That is why the main task of
professionals in the market is to raise
awareness of licensing as a business
opportunity amongst potential licensees. I would note that the Russian licensing market has a strong bias towards childrens cartoon brands.
And while in the world market, for example, the share of the sports licensing is variously estimated as being between 13% and 15% of the market, in
Russia this figure is unlikely to exceed
a few percent. Thats why, personally, I
expect the emergence of a large number of licensed adult brands, including sports brands. Interest in sport

What are the goals in terms of licensing development for the Football Club Zenith?
IS: The direction we are taking allows
us to solve complex tasks assigned to
the club. In addition to the revenue element, the presence on the shelves of
a large number of high-quality products in different categories makes an
important contribution to strengthening the image of our club. It is worth
noting that our own network of stores
is very interested in the emergence of
a new and exciting range of products,
marketed under our brand name.

How at the FC Zenith is built work


on search of licensees: the brand is
going to potential licensees or licensors find the brand?
IS: Of course, we are always actively
seeking new licensees in the categories that are available. But, in addition
to direct approaches to potential partners, we are improving the business
processes in FC Zenit. We are actively
involved in the day to day licensing
market.
Due to the stable sporting success of
our team and sophisticated marketing
strategy used to promote the brand,
we have a significant number of incoming requests about the opportunities to produce goods using our logo.
Can you name the most successful licensing agreement concluded
by FC Zenith? What kind of return

30

have you had from it?


IS: Recently, we have entered into several interesting and promising deals
in various categories. So I would not
want to risk these by specifically naming any.
In a relatively short period of time,
the club became a full-fledged player
in the licensing market and we have a
lot of ideas for furtherr development.
The FC Zenith brand will be on
show at the Buybrand Expo / Licensing Salon. What are your expectations in terms of participation?
IS: Our expectations are primarily related to the appearance of new licensees in various categories. It is always
interesting to talk with colleagues, discuss the latest news from the market
and to share experiences. I also see an
important function in terms of information - to increase awareness and
knowledge of licensing amongst participants in the market.
We also plan to announce a new project with one of the largest participants in the market whilst we are at
Licensing Salon.

TOTAL LICENSING NEW EUROPE

2013: The Year of Kikoriki


adults brands work under the principles of franchise famous shoes and
clothing brands, for example Christian
Dior, Ecco, Intimissimi, Bulgary, Finn
Flare and many others. I expect the
popularity of adults brands licensing
will grow as the market grows.

One of the participants at Licensing


Salon is The Riki Group Russian
leader in animation brands creating,
licensing and management. The Riki
Group celebrates a round-year anniversary in 2013 10 years since the
Kikoriki were created.
Here is an interview with Olga Kritskaya, Director of Marmelad Media
Agency about perspectives of licensing sector in Russia.
Nowadays licensing activities in
Russia are mainly concentrated
on the childrens market segment.
What is your opinion concerning the development of the Russian licensing market in any other
spheres in the near-term prospects?
OK: Russian licensing market today is
on the initial stage of the development,
and there is going to be a lot of things
to go through. Thats exactly why the
main directions of licensing activity
for the present moment are childrens
goods and food products, though
there are such brands for adults like
Salvador Dali, Mr. Freeman, South
park, Zenit. But most of the Russian

Turnover of licensed goods in the


FMCG market segment in Russia
makes up approximately 10-15%,
according to the data of 2012. This
indicator for developed markets
reaches 35-40%. What are the factors, which could make us closer to
the developed markets indicators?
Is it real to achieve them?
OK: World famous brands like Marvel,
Warner Brothers, Disney and Nickelodeon enter the Russian market,
which means new trademarks are
going to be introduced. And as a consequence - growth of a competition,
an increase of advertising budgets,
stimulation of a customers interest

and a great impulse to the whole market growth. According to the LIMA
forecasts, Russian licensing market is
going to develop rapidly in the nearest
5 years and of course it will lead to
significant changes.
What is the common point of franchisors and licensors?
OK: Actually I wouldnt say this point
exists, but there are some minor exceptions. Perhaps it could be Grand
Toys company (Begemot trade network, Next-time company) and Kikoriki. In most cases it happens as follows:
franchisor sets up a business, for instance restaurant or clothing brand
and then starts to sell a franchise for
the business. While the Riki Group
and owners of the Begemot network
are licensors, licensees and franchisors
at the same time.
What do you think about opening

of the Licensing salon in the frameworks of a well-known franchising


project BUYBRAND Expo?
OK: I think its a very prospective
area. For a business development its
crucially important to show licensing
prospects and abilities to the nowadays market.
What are your expectations concerning the participation
at Buybrand Expo and
Licensing Salon?
OK: Expectations
of
course are very optimistic.
We hope to show ourselves
off, to meet old partners and to
find some new.
The Riki Group consists of more than
18 companies, including Riki productions Ltd, Marmelad Media the first
Russian multi branded rights management agency, Petersburg studio of
computer animation, Umnaya Masha
publishing house, New Media internet
projects division, network of Kikoriki
childrens centers and others.
The Riki group is an exclusive agent of
VIACOM for Russian and CIS markets.
More than 4200 items are currently
produced by the Riki Group in 30
product categories in collaboration
with more than 60 licensees. A franchise network of 50 shops and clubs
under Kikoriki brand has been established on the territory of Russia.

31

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TOTAL LICENSING NEW EUROPE


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TOTAL LICENSING NEW EUROPE

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Interview
Kimberly Kociencki Billoni
Chief Executive Officer, SPLiCE

SPLiCE - The Society of Product Licensors Committed to Excellence is a trade


organization founded as a best practice think-tank for trademark brand licensors.
By Goran Kernyak,
Editor of
Total Licensing
New Europe
goran@totallicensing.com

In an exclusive interview, TLNE


talked to Kimberly Kociencki Billoni,
CEO of SPLiCE to find out more
about the organization and plans for
future.
Goran Kernyak: The name of
your organization immediately
attracts attention. What is
SPLiCE?
Kimberly Kociencki Billoni:
SPLiCE is a trade organization
founded as a best practice think
tank for trademark brand licensors.
SPLiCE was founded in 2004 with
the vision to continuously improve brand
licensing. Our goal in
carrying out our mission is to act responsibly as a Licensors
Community of Practice
who share best practices for protecting,
promoting and enhancing brand integrity.
GK: The organization was
founded 9 years ago. Tell us
more about the history of the
organization?
KKB: In my previous life, I worked
as a global liaison in the consumer
product testing industry. At that
time, in the late 1990s and early
2000, consumer products testing
was not as heavily regulated as it is
today and testing was not even mandatory. Licensing programs varied
drastically from one brand program
to another. On the surface, branded

36

products seemed to appear at retail


effortlessly; however, there was an
undertow of chaos for licensees who
lacked resources and knowledge
about understanding the complexities of the importance and frequency
of testing. When a new licensee
would contact me and ask what they
had to do on behalf of the brand
they were licensing, I would first
congratulate them on their business
accomplishments and then say Welcome to the Family!

For trademark brand Licensors, the


licensing contract stipulated product
integrity due diligence from licensees. However, many times training
resources were lacking for licensees.
This truly supported the desire by
Licensors to benchmark the overall
licensing process. Furthermore,
during this snapshot in time, many
Licensors in general did not have internal cross-functional meetings on
a regular basis between marketing,
legal, and quality/product integrity.

Again, testing at this time was not


mandatory in many cases; I needed

Many of my clients at that time


were major manufacturers and also
Licensors. Their goal
was to facilitate robust
licensing programs
that enabled a strong
due diligence process
that the licensee would
follow. As I witnessed
many times within
licensing programs,
overall communication
was weak and best
practice sharing among trademark
brand Licensors had not been formalized as an industry norm. That is,
until 2003.

to help the licensee understand that


the brand they now were in the
process of licensing came with the
assurance that all licensees producing for that brand followed the same
process and due diligence protocol.
The understanding is that if everyone is pulling for the same integrity
and standards, it will strengthen an
overall community effort, whatever
that may be a brand, an investment
or both. There was a strong desire
by brand owner Licensors to benchmark best practices. However a
venue or formalized group exclusively for brand owners did not exist.

After attending many Toy Fairs and


Licensing Shows in NYC, coupled
with numerous conversations with
various brand owners, it was evident
they all had an aspiration to learn
and share licensing best practices. It
was clear the overall licensing industry was not supported by test labs
and that a forum did not exist for
trademark brand Licensors to share
best practices.

TOTAL LICENSING NEW EUROPE


After gleaning such diverse collective input, I designed a business plan
for my company to adopt in an effort to delight existing clientele and
support the licensing industry. Part
of the strategic plan was to invite
clients who licensed their marks
to a roundtable session where we
would have presenters on key topics address brand protection and
allow for meaningful conversation.
My then-company decided to support a roundtable event which
would last for one and a half days.
Existing and potential clientele were
invited to attend for a small fee. The
event was hosted in Sunny Buffalo,
New York in September 2003. We
anticipated 10 to 12 individuals to
participate; we had 46 in attendance
and 22 companies represented. The
success of the event was due
to three key factors: 1) the
Creative Problem Solving
Process was the blueprint
for the overall meeting
facilitation; 2) deliberate
break-outs were scheduled to share knowledge; and 3) no sales
people were invited
so it would be a pure
educational environment.
Energy was so high
amongst the attendees, it was almost

magical. Most prominent was the


collective voice to do it again and
keep the conversation going. By
December of 2003, the group of attendees formed their first website,
ProtectYourBrand.net. In January
2004, McDonalds Corporation
hosted our first New Year Meeting with the objective of identifying
next steps for organizing a more
formalized group. We broke into
task force teams to investigate if
there was an existing organization
that could house our collaborative
group. We then reported back by
March verifying we needed to organize on our own as a nonprofit.
On April 26, 2004 SPLiCE was
incorporated in the State of NY as

a 501c6 trade association. Our Licensor Founding Members included


Anheuser-Busch, The Coca-Cola
Company, Fisher-Price, Mattel,
Inc., McDonalds Corporation, Rich
Products, and The Walt Disney
Company. Today, The Coca-Cola
Company, Mattel, Inc., and The
Walt Disney Company remain active
within our organization and maintain
a seat on our Board of Directors.
GK: SPLiCE is a successful and
much respected organization.
What is its secret for success?
KKB: The people. Within SPLiCE, a
company is the Member. But its the
individuals within those companies
that have created our Community
of Practice. The individuals actively
engaged within SPLiCE are some of
the leading licensing industry global
experts. As a formal Community of
Practice the desire for those involved is to share best practices,
learn from one another, and
most importantly, elevate those
best practices in play to an
even higher level as one overall
collective culmination. As our
Members adopt SPLiCE checklists, models, and/or playbook
best practices created by
benchmarking efforts, this
action in itself elevates the
playing field within the

37

TOTAL LICENSING NEW EUROPE


licensing industry for a framework
that supports: solid education; responsible manufacturing; delivery of
safer consumer products; and protecting the brand.
As a Community of Best Practice,
our benchmarking success is built
upon our foundation cornerstones
of legal, marketing and quality that
support licensing initiatives. As a
community, we encourage participation from individuals in those function groups to embrace a full schematic of the intellectual property
realm to protect the brand. Content
discussed at our meetings is specific
to process as we adhere strictly to
our SPLiCE Antitrust Charter and
antitrust policy guidelines.
GK: What is the organizational
structure of SPLiCE?
KKB: In 2005, Goran, we adopted a Governance as Leadership
model, which allows for the CEO
at SPLiCE to collaborate with the
Board of Directors. This model
permits us to act responsibly as a
single unit. We are all responsible
to our budget, however, it is up to
the SPLiCE Team to manage the
day-to-day transactions while reporting to the Board accordingly.
Our organization is based on the
fundamental of transparency in all
that we do as Thought Leaders
to include creation of vision and
mission for our initiatives, and as
a voice to our membership. This
model also enables us to collaborate
on important functions on behalf of
the organization, including strategic
planning, annual events, and supporting our Standing Committees
and Benchmark initiatives. As the

CEO, I am grateful for my Board of


Directors. They are an extraordinary group of individuals who are
extremely talented in their fields
and so dedicated to SPLiCE. Again,
it is the people within SPLICE that
make our organization so valuable.
However, the leadership is unparalleled to anything I have experienced
in the past.
As an organization, we are a mature
best practice think tank for brand
owners. We are not a collective of
brands that assist other brands to
initiate or build a licensing program.
Per our bylaws and antitrust charter,
we share historical best practices
within the licensing industry to
teach another brand owner how
they might help protect their own
brands. We also are not a consulting
organization that brings licensees
together with Licensors. We truly
are the house that creates a venue
for brands to discuss benchmarking
initiatives for harmonized collaboration.
GK: Who are the members of
the organization?
KKB: Our members are composed of business, government, and
nonprofit organizations. Our over
50-member companies represent
eighteen percent (18%) of the Dow
Jones Industrial Average (DOW)
and thirty-three percent (33%) of
Interbrands Top 100 Global Brands.
As Licensors, our members currently have license agreements with over
2,000 licensees with sales of these
licensed goods exceeding USD$30
billion. The brand name licensed
consumer goods industry aligns enhanced brand equity with licensees

that produce goods and services for


consumers.
More than eighty-percent (80%) of
our SPLiCE Members license consumer goods globally with ninety
percent (90%) having a licensing
program in existence for five years
or more and ninety-three percent
(93%) having two or more brands to
license. Over eighty-percent (80%)
of our members engage in licensing
activities to seek metrics that will
identify consumer satisfaction, brand
awareness, brand loyalty, product
quality & safety, brand image, brand
preference, and manufacturing compliance.
GK: Present members of
SPLiCE are some of the top
multinational corporations with
many US-based headquarters.
Who can become a member
and under what conditions?
KKB: SPLiCE membership is based
on a companys brand value and royalty revenues. Additional membership requirements per our bylaws
include that an individual cannot be
a Member and only brands that are
currently licensing out their marks
are eligible. It is important to note
that no agencies or consultancy
affiliations are represented in the
membership roster as this is a pure
Licensors-only organization for the
benefit of brand protection best
practices.
GK: Once a year SPLiCE members gather at Licensors Workshop. Tell us more, please,
about this event.
KKB: Licensors Workshop is our

SPLiCE Members represent over 40 industry sectors: Aerospace, Apparel, Amusement Parks, Appliances, Art,
Automotive, Beverages (Soft Drinks), Beverages (Wineries and Distilleries), Business Equipment, Celebrity
Estates, Cellular Technology, Childrens Products, Cleaning Supplies, Collegiate /University, Confections,
Consumer Products, Construction, Dental Technology, Digital Imagery & Technology, Electronics, Entertainment
& Character, Farming, Fashion, Food & Beverage, Footwear, Gifts & Novelties, Government, Health & Beauty,
Household Goods & Housewares, Industrial & Commercial Equipment, Infant Products, Juvenile Products,
Motorcycling, Music & Video, Nonprofit, Outdoor Lifestyle, Photographic Equipment and Supplies, Publishing,
Racing, Rubber and Plastics, Spirits/Alcohol, Sports, Sporting Goods, Stationery Goods, Telephony, Textiles
(Apparel Clothing), Textiles (Apparel Footwear and Accessories), Tools (Commercial and Residential), Toys &
Games, Trademark Brands, Transportation, and Wellness.

38

TOTAL LICENSING NEW EUROPE


annual Member meeting where we
formalize our newly elected Board
of Directors, share benchmark work
completed since the last Licensors
Workshop and specifically address
hot topics that affect the licensing
industry.
This year Caterpillar Inc. will host
our annual meeting in Peoria, IL. We
will converge Monday, September
30th through Wednesday, October 2nd for this event. Our agenda
will focus on meeting Caterpillar
in person and highlighting them in
spotlight sessions. We will present
benchmark findings from the SPLiCE
Social Media, Brand Licensing Metrics and Objectives, International
Development Program, and Contract Management Teams. Also, we
will highlight hot topics within the
legal, marketing, social accountability and product integrity function
focus groups, along with a focus on
anti-counterfeiting initiatives that
encourages all stakeholders within
the licensing dynamic to participate.
You can learn more at http://www.
SPLiCEonline.com.
GK: SPLiCE is the host of
Licensors Summit as well.
What is the purpose and goal of
this event?
KKB: As with all our business collaborations, we have a deliberate
vision and mission statement for
the event with the goal to positively
impact the licensing industry. The
SPLiCE Licensors Summit vision
is to facilitate best practice licensing
process management. The SPLiCE
Licensors Summit mission is to set

the stage for Licensors and expert


Service Providers to have an educational forum that builds awareness
of best practices in the licensing
industry. The SPLiCE Licensors
Summit affords opportunities for
Licensors and Service Providers to
understand business challenges and
generate connections. 2012 was our
inaugural year and we sold out a
month in advance!
This year, 2013, four new topics
were featured for our presentation
roster. Overarching topics included
Retail, eCommerce, and Social Media Trends Affecting Brands; Best
Practices for Strategic Brand Collaboration; International Best Practice Strategies for Your Licensing
Program; and Brand Protection and
Consumer Impressions.
We are delighted with the wealth
of expertise that created this years
roster including executive leadership
from Beanstalk, SureSource, McDermott Will & Emery, Cary Francis
Group, Credit & Financial Services,
Inc., RoyaltyZone, Global Icons, Dependable Solutions, ArentFox LLP;
Octane5, Continental Enterprises
and Intertek, NA.
We welcomed approximately 75%
of our SPLiCE Member companies
along with non-member Licensors
interested to learn more about
SPLiCE and take advantage of this
stellar event. Service Provider companies that presented were invited
to attend Licensors Summit.

extend your activities internationally/globally?


KKB: Interesting that you ask, Goran. We recently asked our Members what was most important for
them with regard to their SPLiCE
membership and strategic growth
for our organization. Our Members
find the top three reasons SPLiCE
membership is important to them
and their organization is 1) to learn
2) to network and 3) for best practice sharing. They feel our strengths
are identified by the collaborative
brands, networking, and sharing of
best practices. Within this thought
context, SPLiCE Members would
like to see more Licensors join our
organization whose HQ are located
outside of the US. We will do this
by recruiting international brands
that meet our criteria, identifying
and collaborating with international
organizations, identifying international service provider experts and
resources and conducting international SPLiCE Member meetings.
We are so pleased with the new
relationships developed from attending the Bologna Licensing Trade
Fair, as with Total Licensing. I believe
through future collaborations we
can positively influence the licensing industry. Thank you so much for
your interest to learn about SPLiCE!

GK: What are the strategic


plans for the future? Will you

SPLiCE Members:
3M, AGCO, AT&T, Billboard, The Biltmore Company, Boy Scouts of America, Brown-Forman, Caterpillar
Inc., Church & Dwight, The Clorox Company, The Coca-Cola Company, Crayola, Deere & Company, Dorna
Sports MotoGP, Dr Pepper Snapple Group, DuPont, Electrolux, Energizer, Ford Motor Company, Fruit of the
Loom, GE, General Mills, Hamilton Beach Brands, Hallmark Cards. Harley-Davidson Motor Company, Hasbro,
Inc., Hewlett-Packard, Jarden Consumer Solutions, HGTV, Kimberly-Clark Corporation, Kodak, Kraft Foods,
Mars Retail Group, Mattel Inc., Meredith Corporation, Motorola, National Football League, NBCUniversal,
Newell Rubbermaid, Nike Inc., The Ohio State University, P&G, PBS, Reebok International, S. C. Johnson Inc.,
Saban Brands, Stanley Black & Decker, Textron, Inc., US Army, US Postal Service, The Walt Disney Company,
Whirlpool Corporation, Xerox Corporation, Yamaha Motor Corporation USA.
For more informations please visit the SPLiCE web site: www.SPLiCEonline.com

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Koe o
, SPLiCE

SPLiCE - ,
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By Goran Kernyak,
Editor of
Total Licensing
New Europe
goran@totallicensing.com

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TOTAL LICENSING NEW EUROPE


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TOTAL LICENSING NEW EUROPE


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42

TOTAL LICENSING NEW EUROPE


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SPLiCE:
3M, AGCO, AT&T, Billboard, The Biltmore Company, Boy Scouts of America, Brown-Forman, Caterpillar
Inc., Church & Dwight, The Clorox Company, The Coca-Cola Company, Crayola, Deere & Company, Dorna
Sports MotoGP, Dr Pepper Snapple Group, DuPont, Electrolux, Energizer, Ford Motor Company, Fruit of the
Loom, GE, General Mills, Hamilton Beach Brands, Hallmark Cards. Harley-Davidson Motor Company, Hasbro,
Inc., Hewlett-Packard, Jarden Consumer Solutions, HGTV, Kimberly-Clark Corporation, Kodak, Kraft Foods,
Mars Retail Group, Mattel Inc., Meredith Corporation, Motorola, National Football League, NBCUniversal,
Newell Rubbermaid, Nike Inc., The Ohio State University, P&G, PBS, Reebok International, S. C. Johnson Inc.,
Saban Brands, Stanley Black & Decker, Textron, Inc., US Army, US Postal Service, The Walt Disney Company,
Whirlpool Corporation, Xerox Corporation, Yamaha Motor Corporation USA.
: www.SPLiCEonline.com

43

TOTAL LICENSING NEW EUROPE

BRAND LICENSING
PROCESS STEP BY STEP
THE BRAND LICENSING PROCESS

In the last three editions of Total


Licensing New Europe we have
given our readers an insight into
different types and styles of licensing.
In this issue, Pete Canalichio, an
expert in brand licensing, gives
readers an guide into 8 critical
steps in launching Brand Licensing program.

44

Perform Due
Dilligence

Define
Licensing
Opportunity

Negotiate
Contract

Conduct
Orientation

Establish
Business Plan

Figure 1:
Brand Licensing Process

Figure 3: Brand Licensing Process

Negotiate
Deal Terms

Prototype
Approval

PO Issued

Prospect
Licensees

Determine
How to Win

therefore, adds value and certainty


to an otherwise unknown product.
The stronger a brands reputation,
We know that when consumers bethe higher the value of the brand
come delighted by a particular brand
and the greater revenue it will drive
experience, they begin to bond
for its owner. Prospective licensees
emotionally with the brand. They
want to license brands with the
become brand loyalists and advocates buying the brand more often strongest reputation, as these are
the brands consumers demand and
and recommending it to others. This
retailers prefer most. The stronger
behavior serves to build the brands
the brand, the higher likelihood rereputation. Consumers will often
tailers will buy the licensed products
purchase a brand for the first time
because of its reputation. The brand, and that they will be subsequently
purchased by consumers. Brand loyalists and advocates
look to their preferred brands to deDefine
liver more and better
Identify Where
Agree to
Due
Licensing
to Play
Deal Terms
Dilligence
products year after
Opportunity
year. When this occurs, the brand gains
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec
permission to extend
2013
into categories that
complement its original offering. This is
known as brand exConcept
tension.
Development Starts
Production & Shipping
with Samples
For example, the
Mr. Clean brand,
owned by P&G, was
Jan Feb Mar Apr May Jun
Jul
Aug Sep Oct Nov Dec Jan14
launched in 1963 as
2014
the first household
liquid cleaner. Over
Figure 2: Product Commercialization Timeline
Commercialization

For more information,


please visit website:
www.brandlicensingexpert.com

Prospect
Licensees

STEP 1:
IDENTIFY WHERE TO PLAY

Line
Review

In 2009, Pete founded


Licensing Brands, Inc.,
a company dedicated
to helping brand owners and manufacturers
harness the power
of brand extensions
through licensing.

Brand licensing can be very beneficial for both brands and licensees
if done in a step-by-step manner.
We have divided the brand licensing
process into eight steps. This article
will provide you with an overview of
each of the steps. Later articles will
look into each of them in greater
detail. The Brand Licensing Process
starts several months prior to the
commercialization or launch of the
licensed product. Figure 2 below will
give you a timeline of each of the
processes listed in Figure 1. Licensees and licensors should also keep in
mind that missing crucial deadlines
such as a line review can push the
product launch out by up to a year.

Conduct
Orientation

Having worked
in brand licensing
more then 15 years
for companies such
as The Coca-Cola
Company and Newell
Rubbermaid, Pete is
recognized as leading
expert on the subject
and is frequently
asked to speak at
branding and licensing
conferences and leading business schools
globally.

Determine
How to Win

8 CRITICAL STEPS

Contract
Signed

By Pete Canalichio
Brand Strategist and
Licensing Expert
pete.canalichio@
brandlicensingexpert.
com

Identify Where
to Play

TOTAL LICENSING NEW EUROPE


brand owner to determine whether
Lets look at
it makes sense to even enter the
their brand arcategory. Techniques to use include
chitecture
first.
Immortality
Strengths Weaknesses OpThe key emoEmotional
Benefits
portunities Threats (SWOT)
tional
benefit
of
Captures
Precious Moments
analysis or a Porters Five Forces
the brand is that
analysis. These methods are helpful
it captures preFunctional
in evaluating a business or a project
cious
moments
Benefits
Long-lasting Image
from a strategic point of view. They
but the som
involve specifying the objective of
thing bigger the
the venture and identifying the exbrand
provides
Product Attributes
High Quality Paper
ternal and internal factors that are
is immortalfavorable or unfavorable to achieving
ity. With this in
Figure 5: Kodak brand architecture
mind, the compa- that objective and to determining
ny decided to enter the photography the attractiveness of the venture.
time, the brand gained a strong
paper market. In the diagram above
reputation for its ability to clean efSTEP 2:
you will see how selling photography
fectively on a variety of surfaces. By
DETERMINE HOW TO WIN
paper
fits
in
so
perfectly
with
the
delighting its consumers, Mr. Clean
Once the product category that
brands
architecture
and
positioning.
built significant brand loyalty and
satisfies the brand extension goals
Before
brand
owners
extend
their
allegiance. When asked, consumand creates positive associations for
brands
into
categories
in
which
ers told the Mr. Clean brand team
your brand has been identified, the
they
intend
to
license,
they
should
that they expected the Mr. Clean
next step is to determine how to go
conduct
market
research.
This
brand to offer additional products
about executing the extension. Any
would
include
reviewing
secondary
that simplified and enhanced the
marketing activity requires substanresearch,
holding
focus
groups,
conhousehold cleaning experience. To
tial resources and before a project
ducting
interviews
and
performing
satisfy these consumers, Mr. Clean
is begun, the brand owner must
field
surveys
to
clearly
understand
developed a line of branded mops,
determine whether the company has
what
consumers
believe
about
the
brooms, and brushes.
enough resources to complete the
brand
and
what
their
expectations
These products were met with enendeavor. There is nothing worse
are.
Once
this
is
obtained,
brand
thusiasm and eventually, consumers
than starting a project and then
owners
will
be
able
to
identify
suitdemanded even simpler and more
having to terminate midway due to
able
categories
in
which
to
extend.
effective ways to clean their homes.
lack of resources. So how should
Each
category
should
then
be
evaluToday, the Mr. Clean brand can be
the brand owner determine the best
ated
on
the
prominence
of
brand
found on an expansive list of prodway to go about entering the prodassociations,
favorability
of
assoucts including scrubbing tub and
uct category that has been selected?
ciations
inferred
by
the
extension
shower pads, Magic Eraser cleaning
A first step would be to mobilize key
and
uniqueness
of
association
from
pads, auto dry car wash systems,
departments within the organization
the
new
category.
Once
the
list
of
multi-surface disinfecting wipes,
possible
extenrubber gloves and many other products. Many of these Mr. Clean prod- sions has been
STRENGTHS
WEAKNESSES
ucts are licensed. By owning a brand trimmed, brand
. Advantages
. Disantavantages
that can be extended into numerous owners should
. Capabilities
. Gaps in capabilities
then
conduct
categories, companies are able to
. Resources, assets, people
. Reputation
an
industry
attract and retain multiple prospec. Marketing reach,
. Financials
and competitive licensees. Using licensing to
distribution, awarennes
. Reliability
. Innovation
. Processes, systems
tive analysis of
augment internal resources actually
. Geographical
the
category.
accelerates a companys overall time
. Processes, systems
Specifically, reto market.
search includes
How can you determine your
OPPORTUNITIES
THREATS
the size of the
brands extendibility and identify
market, curwhat product categories it can sell
. Market developments
. Political
rent competi. Industry trends
. Legislative
in? It takes understanding your
. Technological
. Economic
tors, industry
brands vision, architecture and
developments
. Technological
growth
rate,
positioning and the value that the
. Global Influences
. Competitor intentions
and competitive
brand provides. Kodak is a well. Tactics
. Vital contracts
. Financial backing
nature. This
known company in the camera
analysis
will
business. What would be a natural
enable the
Figure 6: SWOT Analysis
extension for them from cameras?
Higher Order
Brand Identity

45

TOTAL LICENSING NEW EUROPE


to conduct their own due diligence.
risk in terms of investment. You
THREAT OF NEW ENTRANTS
When contemplating entering a new
may decide to enter a new product
. Barriers to entry
product category, the first step is to
category via licensing as you evalu. Economies of scale
determine whether the company has
ate your go-to-market strategies.
. Capital requirements
. Switching costs
the competency to design, produce
Alternatively, your brand could be
. Government policies
and market the product with intersolicited by a manufacturer who benal resources. When we refer to
lieves his product would be a good
internal resources,
fit for your brand.
BUYER POWER
we are referring to
This would then
SUPPLIER POWER
RIVALRY
. Number of buyers
relative to sellers
either the companys
start the process of
. Supplier concentration
. Number of competitors
. Product differentiation
. Product differentiation
. Size of competitors
manufacturing capathe brand marketing
. Switch cost to another
. Switch cost to another
. Industry growth rate
product
bility to produce the
team evaluating the
input
. Product differentiation
. Buyers margins
. Threat of backward or
. Exit barriers
product, or its ability
product category of
. Threat of backward or
forward integration
forward integration
to source the prodthe manufacturer
uct competitively
from a brand extendfrom one of its third- party suppliibility perspective. Refer to Figure
THREAT OF NEW ENTRANTS
ers. One way to accomplish this is
8 above to get an idea of how the
to delegate the operations team to
process would flow.
. Price of substitutes
. Quality of substitutes
evaluate the competency of manu. Switching costs to
facturing or sourcing the product
STEP 3:
buyers
and the finance team to conduct a
PROSPECT LICENSEES
cost/benefit analysis of manufacturOnce the product category that
Figure 7: Porters Five Forces Analysis
ing versus sourcing the product. If
best fits the brand extension plans
the analysis confers with the ability
has been identified and brand licensto produce the product, the next
ing is determined to be the most
thing, a company would need extra
step is to determine whether there
beneficial way to achieve this extencash flow to fund such a transaction.
is sufficient budget and capability to
sion, it is time to scout for prospecAlso, acquiring new businesses is a
market the product. Are there adetive licensees within the selected
time-consuming proposition. First,
quate resources to invest in product
product category. Before short
potential target companies must be
development, advertising and prolisting the licensees, it is important
identified. Next, due diligence must
motional activities? Do relationships
to put together a basic checklist of
be completed before negotiating on
exist with distributors and retail
parameters in which to evaluate the
a price. Once acquired, the company
channels through which the product
licensees.
must be integrated within the existwill be sold? Is there sufficient presThese parameters, which we recoming company structure. Because of
ence in enough geographic locations
mend be defined by the brand ownthe lengthy process, critical time
to make the brand extension viable?
er, may include the following: Size
can be lost in launching the product.
Even though it may be preferred to
Even if a company decides to go with of the company Market share in
manufacture the product or source
the product category Current or
this option and the timing fits, it still
it and price it competitively to earn
previous licenses held by the commay not have the marketing budget
a healthy margin, the company may
pany Financials Once the checklist
or the capability to go forward.
lack the resources or the capability
has been developed, the next step is
The other way to extend the brand
to market the product effectively.
to identify companies that manufacexternally is to license the brand to
This can affect the decision whether
ture the selected product category.
a manufacturer of the product in
to manufacture the product interThese can be found easily with
the same category. As mentioned in
nally. If at the end of the analysis,
some research. The most common
previous sections, there are several
its determined that the company
sources of information are trade
advantages to licensing a brand. To
has the capability to design, produce
directories, trade magazines, trade
begin with, the manufacturer (or
and market the product, it should
shows, and research companies
licensee) not only possesses the cago ahead and proceed with product
like Hoovers, Dun and Bradstreet,
pability to manufacture the product
development. However, if a company but also to market it, having done
Frost & Sullivan, and Vault Reports.
does not possess the capability to
Another way for the licensor to
so for unbranded items or lesserproduce the product internally, it
known brands. They also possess the identify prospective licensees is to
should look at the other options
conduct primary research such as
necessary relationships with distribavailable. One way to extend thutors and retailers to make a success store walks. Once a comprehensive
brand into the new category is to ac- of the program. On the downside,
list of prospects is identified, these
quire a manufacturer of the product
candidates should then be evaluthe brand owner forgoes some
to make it and then market it using
ated based on the parameters listed
control when they choose to license
your own resources. This option is
earlier. This will leave the licensor
their brand. However, entering a
often harder than it seems. For one
with a pool of qualified companies
new market via licensing has lower

46

TOTAL LICENSING NEW EUROPE


to investigate further. To make a
licensing agreement a success, both
parties must be willing to commit
equal time and resources. The best
way of assessing their interest level
is to ask them directly. This can be
accomplished by calling them over
the telephone or meeting them in
person. Based on comprehensive
interviews, the licensor would then
shortlist the most qualified candidates with whom they desire to
move further in the process.

STEP 4:
PERFORM DUE DILIGENCE
This is the stage when the brand
owner begins rigorously qualifying
the prospective licensees to determine whether they will progress to
the next phase. This stage involves
conducting a comprehensive due
diligence on the selected companies from a business, financial, legal
and risk management perspective.
The more comprehensive this is,
the less likely the licensee will have
unforeseen issues going forward. A
good first step in this process is to
develop a Licensee Application that
requests all of the information that
is required from the licensee. The
information from the application
would substantiate whatever secondary research was garnered on
the prospective licensee. A Licensee
Application should typically include
the following:
LEGAL CHECK: Is the company a
legitimate legal entity? How long
have they been in business? Where
are they incorporated? Are they doing business under a different name?
What is their structure? Are they
a shell corporation or do they have
actual employees, assets and liabilities? Have they been the subject of
any major lawsuits in the last three
to five years? If so, what was the
nature of the charges and how did
the company resolve them?
FINANCIAL CHECK: To fully understand the financial strength of
an organization it is important to
obtain the prospective licensees
financial statements going back at
least three years. Financial statements help assure the licensor that

the licensee has the resources to


commit to the licensing program
from the beginning to the end of the
contract. Many prospective licensees
are privately held companies. As
such, they will be reluctant to share
their financial statements. However,
it is critical for a licensor to have this
information. Therefore, this should
be a non-negotiable item. Licensors
should also conduct a credit check
on all licensees. The credit check
tells the licensor the timeliness and
reliability of the prospective licensee
to pay their bills. Given the systematic royalty payment requirements of
the licensing contract, understanding
the credit-worthiness of the prospective licensee is critical.
BUSINESS CHECK: Is the company
reputable in the selected product
category? Do they possess any other
brand licenses or have they had
them in the past? If so, what do their
current or previous licensors have
to say about the way they manage
Eligible
Product
Categories

Solicitation
for
Your Brand

Sales &
Marketing
Ability
Yes

Manufacture
or Source

selling the product? What is their


rank by revenue, distribution, employees? Are they a market leader?
What channels are they present in?
How have they been growing? What
kind of product innovations have
they launched in the past? What are
their strengths? How well do they
understand the marketplace and
branding? How are they currently
promoting their products?
Reference check: Reference checks
are an important component of
the due diligence process. Licensors should interview at least three
buyers from among the retailers
that the prospective licensee intends to sell. This helps the licensor
understand quickly the quality of
company from a delivery, manufacturing, service, marketing and sales
perspective. In addition, licensors
should interview up to three licensors if the prospective licensee holds
other licenses. These interviews will
enable the licensor to understand
Evaluate
Product
Category for
Brand Fit

Alignment
of
Brand Team

No
Acquire
or License

License

Licensing
Process
Acquire

License

Licensing
Process

Issue
License

their licensing programs? What is


their reputation in the marketplace?
What do their current customers
have to say about their reliability and
serviceability? How well managed is
the company? How eager are they to
get their license? How collaborative
do they seem? What are their estimated sales forecasts for the selected product, as well as sales history,
over the past three years?
MARKETING CHECK: What is the
prospective licensees market share
position in the selected product
category? How long have they been

Issue
License

Figure 8: Different approaches to licensing

how effectively they can expect the


candidate to execute a licensing
program.
QUALITY AND COMPLIANCE
CHECK: Does the licensee own
their own manufacturing or do they
outsource it? If they source their
product, how long have they been
working with their manufacturers? Will they be able to meet the
brands quality expectations? How
have these manufacturers performed
on previous audits? Do they or can
they meet the social and environmental compliance standards of the
brand?
To be continued...

The second part of


this article,
The Brand Licensing
Process Step by Step,
will appear in the
next issue of Total
Licensing New Europe

47

TOTAL LICENSING NEW EUROPE



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Rubbermaid,



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pete.canalichio@
brandlicensingexpert.
com

TOTAL LICENSING NEW EUROPE


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49

TOTAL LICENSING NEW EUROPE



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TOTAL LICENSING NEW EUROPE



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51

TOTAL LICENSING NEW EUROPE

SPOT THE NEXT BIG


THING AT BLE 2013
15-17 October | Olympia | London
Brand Licensing takes place
from the 15-17 October 2013, at
Olympia, London.
In its 15th year, the show is becoming
increasingly international.
Retailers, licensees, brand owners and
more will gather from around
Europe and the rest of the world to
see the latest brands, characters and
images available for license, create
new partnerships and network. The
worlds leading consumer brands will
be there, including fashion, character,
food, drink, sports, publishing, lifestyle
and celebrity.
There are also nine free-to-attend
seminars and panel discussions taking place in the Licensing Academy,
as well as a new zoned floor plan,
which includes Brands, Character &
Entertainment, and Art, Design & Image.Other highlights will include the
Brands Experience Seminar Theatre,
Brands Bar & Meeting Place, and The
Advice Centre.
Rovio has been announced as the
Keynote Speaker, on Tuesday 15 October at 13.00. The speakers will be
Rovios Jami Laes, EVP Gaming, and
Naz Cuevas, SVP Licensing and the
Keynote is titled Angry Birds How
Rovio Disrupted the Entertainment
Industry.
Naz Cuevas, Rovios SVP Licensing,
said: Jami and I are delighted to have
been asked to give the keynote at

52

BLE this year. Its the perfect forum


in which to share stories and lessons learned about the past, present
and future of Angry Birds and to talk
about how it is re-shaping the entertainment industry. We are preparing
something we hope will be full of
special insights, humour and expertise
we have learned along the way.

Over 280 leading


brand owners, more
then 2200 of the
hottest brands and
9,000+ licensing
professionals
Visitors to BLE 2013 will be able to
hear what lies behind the brand, what
keeps its heart beating, what adventures there have been along the way
and the vision is for its future.
BLE event director Darren Brechin
said: Were thrilled to welcome
Rovio to the show floor this year and
delighted that Naz and Jami will be
giving the keynote and sharing some
of the magic of the Angry Birds brand
with our visitors. I am looking forward to hearing how Rovio created,
built and extended a mobile IP into
one of the most soughtafter brands

of all time.
Kelvyn Gardner, MD, LIMA UK, comments on the show: Brand Licensing Europe has matured into a truly
international licensing event. 2013
entices visitors with the biggest
show to date, more exhibitors from
more countries than ever before. The
new brand zone rightly reflects the
growing importance of this sector
of licensing and provides a suitable
home for businesses with IP quite
distinct from the entertainment offerings on the main hall floor. LIMAs
activity includes our flagship gathering the Global Networking Party on
the middle night of the show, where
senior executives from all over the
world come together in a moment
of calm away from the pitching and
buying on the show floor. What to
look out for this year? The brands, of
course, new to explore for many visitors. The battle of the movie giants,
Marvel and Star Wars from Disney.
Transformers from Paramount, Jurassic Park from Universal, Batman and
Superman from Warner Bros. Digital
platforms aplenty, apps, MMOs, Skylanders, Disney Infinity. The return of
Brit favourites like Thunderbirds and
Bagpuss.Can anyone from the music
world follow One Direction into the
licensing big-time? As ever, many (exciting) questions that visitors can do
their best to answer in three days of
high-intensity. I cant wait.

TOTAL LICENSING NEW EUROPE

RAFA WILL PRESENT NEW


RUSSIAN ANIMATION FOR THE
FIRST TIME AT BLE
Russian Animated Film Association (RAFA) was organized in 2012.
Among the founders of the Association are Yuriy Norshteyn Fund,
Soyuzmultfilm studio, an animation
film school SHAR. The association
includes studios: RIKI (Kikoriki, TV
series), Animaccord Animation Studio
(Masha and the Bear, TV series),
Airplane (Fixies, TV series), Toonbox
(Qumi-Qumi, TV series) and Russian
best art-house animation studios.
RAFA members create and produce
many bright and interesting animation films each year. 3D and 2D in
full-length segment, a lot of TV series
and short art-house projects are
produced every year.
The RAFA main goals are to build
animation industry in Russia, attract state and private investments,
participation in legislative initiative
for animation industry developing
in Russia, to grow level of educa-

40 YEARS OF THE CHILDRENS


SERIES VIC THE VIKING
Studio 100 will celebrate 40 years of
the much-loved childrens animation
series,Vic the Viking, at Brand Licensing Europe. The 40th anniversary of
the 2D classic Vic the Viking series
will see a host of celebratory events
taking place throughout the year. This
autumn, a new CGI series of Vic the
Viking is also set to launch, and has
already been sold to 60 countries
worldwide.
To kick-start the 40th anniversary
celebrations, Studio 100 will be hosting a Vic the Viking themed drinks
reception on stand (D010) at BLE

tion for animation professional staff,


support technical re-equipment for
studios, promotion of the Russian
animation achievements in Russia and
abroad. The Association is open to
cooperation with the worlds largest
animation communities, distributors,
companies, studios and government
organizations to develop, promote
and co-production of animated films
and TV series. RAFA will take part at
Brand Licensing Europe for the first
time. At the Booth dozen different
animation studios will be presented.
New Russian animation has a lot
to show. At present time, Russia is
actively developing as the market for
licensing. There are more and m ore
cartoon heroes.Varieties of animation
brands for licensing are surprising.
Masha and the Bear are among very
popular Russian animation brands.
These popular cartoon heroes were
born from authentic Russian fairy
tales. Their TV series has already won
the childrens audience in Russia and
are becoming more and more popu-

giving guests the


opportunity to learn
more about the
brand, global licensing opportunities
and the new upcoming CGI series. The
40th anniversary
celebration will also
be supported by
a dedicated social
media campaign across different platforms including a special Vic the Viking
Anniversary Facebook page, website
and viral videos hosted on You Tube.
Based on Runner Jonssons book,
the original series of Vic the Viking
enjoyed worldwide broadcast success
in the 1970s and inspired musicals
and movies across Europe.Vic the
Vikings story welcomes children on
board the Drakkar to sail the seven
seas and share the adventures of the
Viking crew! The shipmates often
find themselves in perilous situations
and the Vikings instinctively try to
settle their problems with force. Vic,
our resourceful little hero, prefers to

lar around the world.


Also Soviet classic animation heroes
that were made by greatest Soviet
artists like Yuriy Norshteyn and Fyodor Khitruk are still very popular.
You can find Kikoriki among the most
recognizable Russian animation characters abroad. The adults and children
audience love them.
The big licensing potential is in Fixies
from education Russian TV animation
series and in Belka and Strelka, whose
are patriotic astronauts and Gagarin
followers and dogs.
Also cosmopolitan Qumi-Qumi characters from Toonbox studio, original
animation characters based on Tatar
national fairy tales heroes created
by Tatarmultfilm studio will be very
interesting for licensing worldwide.
Feel Russian hospitality, exam Russian
animation brands for licensing.
RAFA - Booth D125.

seek peaceful resolutions and uses


quick-thinking to get them out of
trouble!
Vic, the ingenious little hero who
relies on brain power to untangle
the most complicated situations, has
had long-lasting success since 1974
and has seen more than 60 licensing
partners for the 2D classic series in
German speaking countries mainly.
The new CGI animated series of
Vic the Viking has been produced by
Studio 100 Animation in France and
Flying Bark Productions in Australia
and will air this autumn in France
(TF1), Belgium (Kidz RTL) and Netherlands (Z@ppelin), supported by a
new global licensing programme.
As part of the 40th Anniversary
celebrations, Studio 100s theme park,
Plopsa La Panne in Belgium opened
a new Vic the Viking zone within the
park this summer, including two brand
new Vic themed attractions and a restaurant. The new zones opening led
to a four per cent increase in footfall
at the theme park this summer.

53

TOTAL LICENSING NEW EUROPE

LEADING CAKE ARTIST A BEHIND A


MAJOR NEW LIFESTYLE BRAND
Lindy Smith, whose cake designing
skills have established her as an internationally successful author, teacher
and businesswoman with 13 books
and a busy online store to her name,
is now the focus of a global licensing
campaign.
Lindy Smith as a sugarcraft artist and
a personality already enjoys a high
level of awareness in dozens of countries across the world. Now JELC
has been appointed to build on that
awareness and roll out a licensing
strategy for the Lindy Smith brand. It
will use Lindys distinctive mix of pat-

CONTINUING SUCCESS OF
CAROLINE MICKLER LTD
Bringing together the continuing success of classic brands like The Beatles,
Yellow Submarine and Moomin alongside the biggest literary phenomenon
of the century, the cutest retail star
in years and one of the first and
greatest gaming sensations, theres
no shortage of diversity on the
Caroline Mickler Ltds booth at Brand
Licensing - B078.
UK-based Caroline Mickler has
been successfully implementing the
UK brand licensing strategy for The
Beatles on behalf of Apple Corps Ltd
since 2003. This programme has successfully taken the multiple associations of The Beatles brand into a large
number of categories, ranging from
calendars, board games, cushions
and playing cards to slippers, awardwinning fashion bags and high-end
heritage t-shirts.
The latest success has been in apparel with a Tommy Hilfiger range. In
addition, there has been wider distribution of product in outlets ranging
from stores like Selfridges to retail
giants like Primark
Yellow Submarine is a highly creative
and innovative property. It works
equally well as a kids, adults or fashion and design brand. Thats why the
UK product extension programme
has developed Yellow Submarine as
an art and design-based property
with both mass market and high end

54

terns and colour palettes as the basis


of a comprehensive style guide.
Work on the look and feel of the
brand is already well advanced. Working with UK design agency Minnow
Creative (creator of The Great British
Bake Off branding and style guide),
Lindy has put together a collection of
colours, icons, prints and finishes that
can be combined to generate a range
of products that will be both eyecatching and instantly recognisable.
Strong licensee interest and enquiries have already given the campaign
an early boost. The vision for Lindy
Smith is to create a leading British
lifestyle brand with products in key
categories worldwide.

To meet the growing demand for


information about the brand and its
potential Lindy herself will be making an appearance at Brand Licensing
Europe at the JELC stand (D065).

appeal covering categories as diverse


as t-shirts, greeting cards, designer
jewellery and specialist prints.
The imminent launch of the official Fifty Shades Of Grey lingerie
line from British lingerie company
BlueBella was announced at Moda,
the UKs largest fashion trade show,
a few weeks ago. Now the popular
adult romance fiction is targeting
sleepwear, apparel, beauty products,
bedding, home furnishings, stationery,
jewellery and adult products. In fact
licensing potential is continuing to
grow as the Fifty Shades of Grey

led retailers and fashion influencers


to wider-ranging categories and
outlets, the most recent of which is
Primark for ladies sleepwear. Apparel,
homeware, fashion accessories and
toiletries are all part of the recent
activity of this highly successful licensing campaign.
A parallel effort has focused on
the pre-school market. It is led by
a publishing programme for kids
with Puffin and strong, related promotional efforts.The Tetris name
and recognisable interlocking Tetris
shapes are classics in their own right
with a strong licensing presence in
numerous countries. Now the UK is
building a licensing business beginning
with the first-ever Tetris costumes
from the MorphCostumeCo: pop-up
costumes that come in a flat pack
style, and pop up into shape quickly
and easily.
Finally, Boo, the five-year old Pomeranian also known as the Worlds Cutest
Dog is on his way to the UK. Starting
out as a US internet sensation Boo
now has millions of Facebook fans
and a growing number of licensing
partners backing him to repeat his
US retail success in the UK, including
Blueprint Collections as the licensee
for stationery. Boo t-shirts and sleepwear are launching in a major retailer
this autumn and licensees have also
signed up for homeware, giftware,
novelty accessories, plush and publishing.

books continue to sell strongly and


media coverage of the forthcoming
film version further raises consumer
awareness. Caroline Mickler Ltds
strategy for Moomin has addressed
the young womens market that has
long responded to the charming,
friendly characters. The licensing
programme has quickly grown from
its beginnings in independent design-

TOTAL LICENSING NEW EUROPE

RAINBOW
BLE 2013!
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55

TOTAL LICENSING NEW EUROPE

RAINBOW BRANDS SET TO


SHINE AT BLE 2013!
Rainbow, one of the largest animation
studio in Europe, will be presenting
a selection of major global brands at
Brand Licensing Europe 2013.
Winx Club is the hugely popular
brand that boasts over 15m viewers
each day through 115 broadcasters
worldwide. The property comprises
over 130 animated episodes as well
as two feature-length movies and
follows the adventures of a group
of young fairies, combining action/
adventure with comedy. Winx Club
has massive appeal to girls from 4 to
10 right up to tween/teen and boasts
over 500 licensees across a multitude
of categories with more than 6000
products developed.
Winx Club marks its 10th anniversary next year, which offers opportunities to celebrate the success of
this popular girls property! New
initiatives start with new content. The
sixth series will be released globally,
which features 26 episodes and mixes
2D and 3D animation, and a third
movie is currently in production. The
anniversary calendar is also full of ac-

FIRST TWITTER PROPERTY


LICENSED
Brand Licensing Europe will be playing
host to the first ever licensed Twitter
property in the shape of @IQuoteForHer. Represented by Game of 2
Halves, @IQuoteForHer has built up
a huge following thanks to messages
such as Lifes so much better when
youre tanned, Shoes speak louder
than words and The best women
are a little crazy. @IQuoteForHer
has over 81,000 followers, including
celebrity fans such as Nicola McLean,
Amy Childs, and Danica Thrall, and

56

tivities thanks to a huge programme


of events, promotions and strategic
partnerships designed to engage
all target markets. Entertainment
continues on the interactive field,
as fans from around the world will
finally be able to attend Alfea College
thanks to the multiplayer game Winx
Fairy School, which will launch next
Christmas. Last but not least, the first
E-commerce site entirely dedicated
to Winx Club will debut this Autumn
with exclusive products and dedicated activities for European and Russian
audiences.

becomes the guardian of the lands


unicorns.

Mia and Me is the outstanding hybrid


of live action and CGI animation and
is a co-production with Lucky Punch
GmbH. The award-winning show
combines fantasy, adventure and comedy and chronicles the adventures of
12-year old Mia as she juggles her life
in the real world with another role
in the magical kingdom of Centopia,
where she turns into an elf who

The first series, which has been


picked up by more than 70 broadcasters in over 80 territories, is set to
be followed by a second in 2015, as
well as a feature film, making Mia and
me a strong opportunity for licensing.
The collectibility of the characters
has led to a strong programme of
over 100 licensees that have developed over 600 products. A full range
of licensed merchandise will launch
next year and this will include the toy
line from global toy partner Mattel.
Other partners include Ravensburger,
Egmont, Unilever, Nestle and Panini.
Rainbows continued global expansion
and the licensing communitys nterest in their brands have led to the
appointment of a host of agents to
promote the properties and deal with
enquiries within the New Europe
territories: B-Rights (Mia and me,
PopPixie and Huntik) in Greece, ELC
in Eastern Europe and the Ukraine
(Winx, PopPixie and Huntik), Filma
in Turkey, License2Brand (Winx) in
Greece and Yooka in Israel.

continues to grow all the time.


The brand has already signed its first
licensing deal thanks to an agreement
with Copywrite Stationery, which
will be producing a wide range that
includes notebooks, post-its, cosmetic
cases, mugs and bags.
The brand offers over 600 humorous
quotes, offering huge potential across
sectors such as apparel, accessories,
greetings, stationery, publishing and
more. @IQuoteForHer is hilarious, edgy and a cut above any other
word-based property on the market,
so we are really looking forward to
presenting it on stand N40 in the

Brands area at BLE 2013, said Paul


Comben, Game of 2 Halves Managing
Director. Its a simple but brilliant
concept that can work across any
number of categories and we are
very excited about talking to potential partners at the show.

One of the strategic strengths of the


Winx Club brand is its fashion appeal
and original style - a clear expression
of how the Made in Italy stamp has
an effect even in the animation world.
This fashion power is an integral part
of the brands status as a popular
girls in Europe and is made possible
by Rainbows flexibility and skill in
the fashion field, where they have the
ability to generate compelling style
guides to satisfy market demands,
supporting the licensing partner with
its internal fashion style department.

TOTAL LICENSING NEW EUROPE

INK
BLE 2013
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57

TOTAL LICENSING NEW EUROPE

INK BRING TWO HOT PROPERTIES


TO BLE 2013
Ink Brands, Stand D080 at BLE, will
be showcasing two of their hottest
new properties in the market Subway Surfers and Masha and the Bear.
Subway Surfers is the highly addictive
3D platform game puts the player in
the role of young graffiti artists as
they evade the attentions of a railway
security guard and his dog; challenges
involve dodging oncoming trains and
other hazards, whilst picking up coins
and useful objects. Developed by top
Danish digital company SYBO Games
and distributed by Kiloo, the apps
combination of exciting gameplay and
sumptuous animation-style graphics
is proving to be popular. 200 million
downloads were recorded within less

FILLY FUNTASIA SHOWCASED IN


LONDON
Dracco and BRB Internacional from
Spain will present two full-length Filly
adventures at the Magic Royal Academy of Funtasia for the first time at
Brand Licensing this year. Dracco and
BRB Internacional, the distributor of
the series on a global level (with the
exception of Germany), will show the
highly anticipated first two adventures
of this new animated cartoon sitcom.
The series features the popular Filly
characters and a new world of magic
and fantasy. Produced by Screen 21/
Black Dragon and created in dynamic

GEM FAIRIES AT BLE


Gemmas girls property Gem Fairies is casting a powerful spell in a
growing number of territories. As the
brand makes its second appearance
at Brand Licensing it brings with it
a long list of licensees around the
world. The show is also the ideal platform for brand owner and creator
Gemma, the UK market leader in

58

than twelve months of launch and


the consumer appetite for the brand
is showing no signs of dropping off.
Ink has appointed a global network
of sub-agents to help popularise the
brand and a successful consumer
product programme is already in
place in North America, with all key
categories signed. Future plans for the
property will ensure it stays fresh and
dynamic and secure brand presence
for years to come.
Visitors to BLE will also be treated
to a whole area dedicated to Masha
and the Bear - the Russian animation
that chronicles the adventures of a
little girl called Masha and the bear
who becomes her reluctant playmate.
Having established itself as the biggest
brand in its home territory, Masha

and the Bear is now going global and


agreements are in place with major
broadcasters across the world to
screen the cartoon. (Read full story
about Masha and The Bear at pages
18 to 25)
We are very excited about bringing
these brands to BLE 2013, says Ink
Director Claus Tmming. They both
represent something new and fresh
but also have a proven record of success that underlines their enormous
potential.

3D hi-def, the series has top-tier


scriptwriters from Hollywood. The 26
x 30 minute episodes will be ready
for broadcast early next year.
This new series will provide entertainment for the entire family. Filly
Funtasia revolves around the adventures of Rose, a Unicorn Filly who is
the newest student at the School of
Magic in the kingdom of Funtasia. In
attendance are all of the wellknown
young princes and princesses from
all the Filly kingdoms be they Elves,
Fairies, Unicorns, Princesses or
Witches. The Funtasia television series is the latest step in the success-

ful march of the Filly brand across


multiple platforms around the world.
Present in over 50 countries, the
success of the brand is supported by
partners such as master toy licensee
Simba Dickie Group.
BRB Internacional distributes the
series Filly Funtasia throughout the
world, except in Germany, and manages the rights to the Filly brand in
Spain and Portugal. Dracco manages
the television series in Germany and
the Filly license throughout the world
except on the Iberian peninsula. BRB
and Dracco can be seen at booths
B025 - F020 at Brand Licensing.

licensed greetings, to present its plans


for the three princesses who transform into Gem Fairies.
To date JELC, global licensing agent
for Gem Fairies, has secured licensees
in territories as far-flung as Thailand,
the Philippines, Mexico, South Africa
and Russia in categories that range
from stationery, apparel, party paperware, toys and publishing to arts and
crafts and of course greetings cards.
And greeting cards have also been
popular in the UK for Gem Fairies.
Gemmas range is proving to be a
success in retailers such as Toys R Us,
Sainsburys, Asda and most recently
Clintons.
Now, building on growing international awareness, Gemma is investing

heavily in the Gem Fairies brand with


new artwork, style-guide, website and
ftp on-line approvals, assets site and
a brand new Gem Fairy. Visitors to
Brand Licensing can hear more about
these plans and see some real-life
Gem Fairies! on JELCs stand, D065.
Gemmas Amanda Parkin, said, Our
design and marketing team, alongside
our licensing partner JELC, have
worked hard to develop a strong,
quality brand and campaign, with
wonderful results. We are delighted
that Gem Fairies have been a success
with their young audience across
so many very different territories
and are looking forward to further
strengthening the brand message
over the coming year.

TOTAL LICENSING NEW EUROPE

NEM 2014 - THE DESTINATION FOR THE GLOBAL MEDIA INDUSTRY


The New Europe Market (NEM) 2014
will be the largest gathering of media
professionals in the region and will be
held June 10 to 13, 2014 at the Dubrovnik Sun Gardens and Radisson
BLU Resort & Spa.
The first ever New Europe Market,
NEM 2013, held in April, surpassed
expectations. Bringing over 250 companies from all over the world to Dubrovnik, NEM 2013 was one of the
largest content markets in the region.
In addition to the content market,
NEM 2013 included 14 panels; presenting the perfect opportunity to discuss the newest global media trends.
NEM 2014, will continue to bring together the most prominent experts in
the global media industry, guaranteeing an active and dynamic market, and
providing endless networking opportunities. The success of NEM 2013 is a
testament to the CEE regions importance and appeal.
The event is organised by Mediavision,
the only regional company that specializes in representing and promoting
TV channels in the Croatian as well as

regional markets.
By organizing NEM,
Mediavision hopes
to promote new
content, production, and marketing
services for the telecommunications
industry in the
CEE region. NEM
2014 will continue
to bring together
leading figures in
the global media
industry, many of whom decide television content in the region and around
the world.
There was talk about this event for a
long time, and we always said we were
supportive. It makes sense to create a
market here. People who visit other
conferences are usually from the region, so why not come here to discuss
the market. NEM definitely combines
business and pleasure. said Balazs Hajos, Director of Affiliate Sales, Chello
Central Europe.
This is a very important moment

in time for Croatia, because we just


joined the European Union. This conference and the ability to bring everyone together in one place to discuss
our next moves, the opportunities,
the ability to acquire, distribute and
produce content is very important.
continued Ivica Mudrinic President
of the Management Board, T-Hrvatski
Telekom.
For more information about NEM
2014, visit www.neweumarket.com
or via Facebook, Twitter, LinkedIn, and
Instagram.

KAZACHOK FORUM SCHEDULED FOR APRIL 2014

Over the last 10 years, the Kazachok


Licensing Forum has attracted licensees, agents, rightsholders, retailers,
manufacturers and others to Paris and
2014 will be no exception.
Scheduled for April 1 and 2, the forum will highlight 2,500 properties
and exhibitors confirmed to date include CPLG, Warner Bros Consumer
Products, 4K Media, Wiley, Toei Animation Europe, Nelvana, Biplano, Nickelodeon Consumer Products, Turner

CN Enterprises,
as well as French
companies such as
TF1 Licences, M6
Licences, France
Tlvisions
Distribution, Glnat
Editions, Gaumont
Animation, etc.
The event also
presents an opportunity to meet
young
creators
such as Yomzeo,
Boumaga, Azarel, Luluben or iD: the
brand of wit, who will present new
brands that emanate from different
backgrounds.
For exhibitors, the forum is more than
just a physical booth. The organisers
have created an array of tools and services to offer brands greater visibility
before, during and after the event. Exhibitors have a personal space online
that optimizes brand communication
and, importantly, allows advance con-

tact with registered visitors. Before


the fair opens, exhibitors have free
access to the complete details of preregistered visitors. They can organize
appointments before or during the
Forum, the goal being to make it easy
for interested parties to meet and do
business.
For visitors, the forum offers a personal space created to maximize their
time during the fair enabling them to
find out about exhibitors attending,
their latest news, and contact them
for an appointment; pre-register for
the exhibitors Strategy Pitching Sessions, and access the program of conferences and special events.
On the conference side, the forum is
hosting an extensive program covering
a wide range of topics as well as pitching sessions where exhibitors unveil
strategy and brand communication
plans and a number of special events.
For further information visit:
http://forumlicence.kazachok.com

59

TOTAL LICENSING NEW EUROPE

TURKEY
By Hamdullah Yalvak,
Brand and Licensing
Director,
License Time
Magazine & Lisans
Medya Co. Ltd.
hyalvak@licensetime.com

The State of the [Licensing] Market


Economy
The Turkish economy has shown
remarkable performance with its
steady growth over the last eight
years. A sound macroeconomic
strategy in combination with prudent
fiscal policies and major structural
reforms in effect since 2002 has
integrated the Turkish economy
into the globalized world, while
transforming the country into one
of the major recipients of FDI in its
region.
According to the Turkish Statistical
Institute, The structural reforms,
hastened by Turkeys EU accession
process, have paved the way for
comprehensive changes in a number
of areas. The main objectives of these
efforts were to increase the role
of the private sector in the Turkish
economy, to enhance the efficiency
and resiliency of the financial sector,
and to place the social security
system on a more solid foundation.

60

As these reforms have strengthened


the economic fundamentals of the
country, the economy grew with an
average annual real GDP growth rate
of 5.2 percent over the past nine
years between 2002 and 2011.
Together with stable economic
growth, Turkey has also reined in
its public finances; the EU-defined
general government nominal debt
stock fell to 39.4 percent from 74
percent in a period of nine years
between 2002 and 2011. Hence,
Turkey has been meeting the 60
percent EU Maastricht criteria for
public debt stock since 2004. Similarly,
during 2002-2011, the budget deficit
decreased from more than 10
percent to less than 3 percent, which
is one of the EU Maastricht criteria
for the budget balance.
As the GDP levels more than tripled
to USD 772 billion in 2011, up from
USD 231 billion in 2002, GDP per
capita soared to USD 10,444, up from

USD 3,500 in the given period.


The visible improvements in the
Turkish economy have also boosted
foreign trade, while exports reached
USD 135 billion by the end of 2011,
up from USD 36 billion in 2002.
Similarly, tourism revenues, which
were around USD 8.5 billion in 2002,
exceeded USD 23 billion in 2011.
Significant improvements in such a
short period of time have registered
Turkey on the world economic scale
as an exceptional emerging economy,
the 16th largest economy in the
world and the 5th largest economy
when compared with the EU
countries, according to GDP figures
(at PPP) in 2011.
While many economies have been
unable to recover from the recent
global financial recession, the Turkish
economy expanded by 9.2 percent in
2010, and 8.5 percent in 2011, thus
standing out as the fastest growing
economy in Europe, and one of the
fastest growing economies in the
world.
Moreover, according to the OECD,
Turkey is expected to be the fastest
growing economy of the OECD
members during 2011-2017, with an
annual average growth rate of 6.7
percent.
Therefore its a successful growing
economy:
Booming economy; more than
tripling its GDP, reaching USD 772
billion in 2011, up from USD 231
billion in 2002 (TurkStat)
Stable economic growth with an

TOTAL LICENSING NEW EUROPE


average annual real GDP growth rate
of 5.2 percent over the last 9 years
(TurkStat)
Promising economy with a bright
future as it is expected to become
the fastest growing economy among
the OECD members during 20112017 with an annual average real
GDP growth rate of 6.7 percent
(OECD Economic Outlook No. 86)
18th largest economy in the world
and 7th largest economy compared
with the EU in 2011 (GDP at current
prices, IMF WEO)
Institutionalized economy fueled
by USD 110
billion of FDI in
the last 9 years
and ranked as
the 13th most
attractive FDI
destination
in 2012 (A.T.
Kearney FDI
Confidence
Index)
A dynamic and
mature private
sector with USD
135 billion worth
of exports and an
increase of 275
percent between
2002 and 2011
(TurkStat).
Of course, population has great
amount effect on economic growth,
A population of 75 million (2011,
TurkStat)
Largest youth population compared
with the EU (Eurostat)
Half the population under the age
29.7 (TurkStat)
Young, dynamic, well-educated and
multi-cultural population
So, there is a growing nation in terms
of economy in a short period of time
with its young generation.

of agricultural products; textiles;


motor vehicles, ships and other
transportation equipment;
construction materials; consumer
electronics and home appliances.
Rapid increase in constructions and
real estate sales is also an important
and distinct indicator of fast growth.
In recent years, Turkey had a
rapidly growing private sector, yet
the state still plays a major role in
industry, banking, transport, and
communications.
Moreover, Turkeys political position
in West Asia region has changed
over the last 12
years thanks to
governments
critical decisions
and actions such
as public-friendly
regulations aiming
EU participation.
Along with
economical
growth, there has
been a noticeable
floor for
competition with
China as higher
quality products
in better price. Its
also a priceless
advantage of
Turkey that being located in the
centre of Eastern and European
regions and being surrounded by
CIS and EMEA countries is a unique
position to define Turkey as a long
and close bridge between Europe and
East. All together, with regional and
industrial advantages, Turkey is still a
central point of interest in the world.

Turkish TV Dramas
Turkish television dramas are wildly
popular in Turkey and are among the
countrys most vital exports, both in
terms of profit and public relations.
The television drama industry has
played a pivotal role in enhancing
Turkeys popularity in the Arab
world. In a survey carried out in
16 Middle Eastern countries by the
Turkish Economic and Social Studies
Foundation, three out of four of
those surveyed said they had seen a
Turkish television series.
Turkish dramas feature relatively high
production values, with production
costs of nearly $100,000 per hour
for high quality series, compared
to $35,000 to $40,000 for Arab
productions. Since 2001, 65 Turkish
television series have been sold
abroad, bringing in over $50 million
to the booming Turkish television
industry. Annual income from soap
opera exports in 2012 was expected
to reach $90 million, from just $1
million in 2007.
Turkish television channels producing
drama series include TRT, Kanal
D, Show TV, Star TV, and ATV. The
Turkish drama market is marked by
stiff local competition: out of the
60 dramas produced every year in
the country, almost 50% dont run
for longer than 6 episodes due to
the strong competition among the
different local channels. This explains
the high-quality of its products, and
consequently their popularity.
Some Turkish dramas are more
appealing to women, while some
action series attract male audiences,
which helps attract different types of
advertisers for different viewerships.

Trkiye

Noticeable economic growth


The economy of Turkey is defined as
an emerging market economy by the
several international organizations
and is largely developed, making
Turkey one of the worlds newly
industrialized and commercialized
countries. The country is among
the worlds leading producers

61

TOTAL LICENSING NEW EUROPE

Trkiye

For example, Muhtesem Yzyl which


is about the life of Sultan Suleiman
the Magnificent, proved popular in
both Turkey and the Middle East,
being broadcast in 43 countries and
watched by 200 million people.
The success of soap operas has
boosted tourism as well, as visitors
are keen to see the locations used for
their favourite shows.

Brand Licensing
LICENSING AGENTS
There are over 20 Brand Licensing
Agents in Turkey with strong brand
portfolios specializing mostly in
cartoon characters, sports and other
TV brands.
Here are major licensing agents
with the brands and properties they
represent in Turkey:
ANIMAX: Keloglan, Bocuk FM, Anka
CORDOBA: Cille, Nane and Limon
(Mint and Lemon).
DISNEY TURKEY: Spiderman, Mickey
Mouse Clubhouse, Cars, Iron Man,
Disney Princesses, Winnie The Pooh,
Muppets, Brave, Tinker Bell.
ELASTIC RIGHTS: Flash KickerTsubasa, Wow Wow Wubbzy,
Slugterra, Cloud Babies, Artzooka
FILMA LTD: Winx, Pop Pixie, Huntik,
Le Petit Prince
GAMMA MEDYA: Sponge Bob
Squarepants, Chuggington, Dora
The Explorer, Garfield, Barbie, Polly
Pocket, Smiley, South Park, Popeye,
Betty Boop, Bob The Builder, Ninja
Turtles, Thomas and Friends, Roary
the Racing Car, Monster High and
Dreamworks Animation Properties.
HASBRO TURKEY: Transformers, Play
Dough, Monopoly, Kreo, Baby Alive,

62

Beyblade, Nerf, Playskool, Littlest Pet


Shop, My Little Pony.
KAYNAK LISANS-LIMA TURKEY:
LIMA Representative, NT, Aku and
Kamu.
LISANS A.S.(LDI)- SINERJI: Warner
Bros.and Cartoon Network
properties including; Ice Age, The
Simpsons, Looney Tunes, Tom and
Jerry, Bakugan, Ben 10, Batman,
Superman, The Flintstones.
LISANS MEDYA: Zadex, Bean World,
Withit, Domo-Kun, Angel Cat Sugar
MART AJANS: Sizinkiler (Olive and
Lemon)
MAX LICENSING: Hello Kitty,
Strawberry Shortcake, In the Night
Garden, Star Wars, Pink Panther, Miffy,
Care Bears.
MERMEDYA: Beyblade, B-Daman, Da
Vinci Learning.
METROPOL LISANS: Tarcin and
Friends, Caillou, Arthur, Louie, Pin y
Pon, Marsupilami, Pocoyo.
LICENSEES/LICENSED PRODUCT
MANUFACTURERS
Here is a list of the 25 major

Licensed Product Manufacturers and


Distributors in Turkey in alphabetical
order:
ABKA KIRTASIYE - Stationery and
Paper Products
ADORE TOYS - Toys
ARIKAN SAAT - Watches and
Accosories
BANAT - Toothbrushes and
Hairbrushes
BUCURUK - Kidswear
DEDE / FEN TOYS - Plastic Toys
DEGAR KIDS - Plastic Toys and
Furnitures
DOGAN EGMONT - Publishing,
Regular Magazines
DOLU PLASTIK - Plastic Toys
DONMEZLER LISANS - Stationery
and Paper Products, Fashion Bags,
School Bags, Backpacks, Toys
FURKAN GROUP - Toys
HAKAN CANTA - Fashion Bags,
School Bags, Backpacks
HOBBY / OZANTEKS - Home
Textile and Beddings
STIKBAL MOBILYA - Home
Furnitures, Home Textile and
Beddings

TOTAL LICENSING NEW EUROPE


KESKIN COLOR - Gift Cards, Paper
Products and Note Books
MARKAEVI - Candies and Toy
Candies
OZDILEK TEKSTIL - Home
Accessories, Home Furnitures, Home
Textile and Beddings
PANINI Publishing, Regular Magazines
PASABAHCE - Glassware
ROLY POLY / YASIN - Kidswear
ROYAL HALI - Carpets
SESLI TEKSTIL - Blankets
TAC / ZORLUTEKS - Home
Accessories, Home Furnitures, Home
Textile and Beddings
UGUR / ZIYLAN/ FLO/ POLARIS Footwear
YAYGAN CANTA - Stationery and
Paper Products, Fashion Bags, School
Bags, Backpacks
LICENSED BRANDS AND PROPERTIES
Here is the list of the leading 25
Licensed Brands/Properties in Turkey
in alphabetical order:
ANGEL CAT SUGAR
BAKUGAN
BARBIE
BEN 10
CAILLOU
CARS
CHUGGINGTON
CILLE
DOMO-KUN
DORA THE EXPLORER
HELLO KITTY
ICE AGE
KELOGLAN
LOONEY TUNES
MICKEY MOUSE CLUBHOUSE
MY LITTLE PONY
NINJA TURTLES
POCOYO
SPONGEBOB SQUAREPANTS
STAR WARS
STRAWBERRY SHORTCAKE
SUPERMAN
THE SIMPSONS
TRANSFORMERS
WINX

Sindy is back in Turkey


Britains top teenage doll was
launched in September 1963 by
Pedigree Toys Ltd, a division of the
famous Lines Bros Ltd who had been
in the toy business for over 100
years.
In 2013 the Sindy brand will be celebrating 50 years of success.

The Sindy Look!


Sindy has been a role model, best
friend and fashion icon to millions of
young girls over the years and today
she continues to reflect the interests
of her core market (4 to 8 year old
girls) and all that is best of a modern,
fashion conscious teenager.
For her special anniversary, Sindy has
a newly sculpted face modeled on
her classic natural beauty, a flexible
jointed body and a great new wardrobe of fashions and accessories on
trend for the coming year.
Sindys original sculpt and face paint
is unique, timeless and very special.
Young, fresh, fun, innocent are words
regularly used to describe Sindy.
These are qualities often specified in
the design of other dolls but rarely
achieved. Somehow with Sindy it
came together with her classic sculpt
universally recognized for its natural
beauty. Sindys eyes look to her right,
traditionally painted with large,
black pupils including a white
dot of light in each to enhance
the deep blue irises. The result
shows Sindy as a confident
but not too young girl, a look
which has endeared her to all,
over the years.
Todays Sindy embraces everything
that made her number one fashion
doll for all Sindy Girls throughout
the world.

Lisans Medya is excited to be working with the Sindy brand and is looking forward to re-introducing her
to the Turkish market with intensive
marketing activities and a wide ranging merchandising programme.
The company aims to give the Sindy
brand a strong momentum in Turkey
with the help of both offline and
online promotions and marketing
activities to be undertaken by their
dedicated team.
Lisans Medya added that there are
currently four licensees in Turkey
with tens of products and they aim
to increase the number of licensees
at least to ten by early 2014.
M.Esat Yalvak, General Manager of
Lisans Medya told TLNE that by
investing a serious amount of time
and financial support in social media
promotions, they will always back the
brand and will be in close contact
and interaction with Sindy fans.
They will also be in close communication with their licensees to cooperate with them regularly to ensure
the product placements at retail and
to organize retail promotions and
conduct cooperative digital media
planning.

Trkiye

Sindy In TURKEY
In 2013 celebrating Sindys 50th anniversary, Pedigree Dolls & Toys has
repositioned the Sindy brand with
the intention of rolling out a strong
global licensing programme.
In Turkey, they have appointed Licans
Medya Yahinclik Reklam Paz. Dag.
Ve Dis Tic, Ltd, Sti as their licensing
agent for Turkey.

63

TOTAL LICENSING NEW EUROPE


Hamdullah Yalvak,

License Time Magazine


& Lisans Medya Co. Ltd.
hyalvak@licensetime.com



.



,
2002
,

.
,
,
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,


.
,

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,
; -
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64

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:

TOTAL LICENSING NEW EUROPE


;
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Economic Outlook 86)
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65

TOTAL LICENSING NEW EUROPE

Trkiye

1 . 2007 .
,

TRT, Kanal D, Show TV, Star TV ATV.

:
60
, 50%
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.

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,


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66

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,
:
ANIMAX: Keloglan, Bocuk FM, Anka
CORDOBA: Cille, Nane and Limon
(Mint and Lemon).
DISNEY TURKEY: Spiderman, Mickey
Mouse Clubhouse, Cars, Iron Man,
Disney Princesses, Winnie The Pooh,
Muppets, Brave, Tinker Bell.
ELASTIC RIGHTS: Flash KickerTsubasa, Wow Wow Wubbzy,
Slugterra, Cloud Babies, Artzooka
FILMA LTD: Winx, Pop Pixie, Huntik,
Le Petit Prince
GAMMA MEDYA: Sponge Bob
Squarepants, Chuggington, Dora
The Explorer, Garfield, Barbie, Polly
Pocket, Smiley, South Park, Popeye,
Betty Boop, Bob The Builder, Ninja
Turtles, Thomas and Friends, Roary
the Racing Car, Monster High and
Dreamworks Animation Porperties.
HASBRO TURKEY: Transformers, Play
Dough, Monopoly, Kreo, Baby Alive,
Beyblade, Nerf, Playskool, Littlest Pet
Shop, My Little Pony.
KAYNAK LISANS-LIMA TURKEY: LIMA
Representative, NT, Aku and Kamu.
LISANS A.S.(LDI)- SINERJI: Warner
Bros.and Cartoon Network
properties including; Ice Age, The
Simpsons, Looney Tunes, Tom and
Jerry, Bakugan, Ben 10, Batman,
Superman, The Flintstones.
LISANS MEDYA: Zadex, Bean World,
Withit, Domo-Kun, Angel Cat Sugar
MART AJANS: Sizinkiler (Olive and
Lemon)
MAX LICENSING: Hello Kitty,
Strawberry Shortcake, In the Night
Garden, Star Wars, Pink Panther,
Miffy, Care Bears.
MERMEDYA: Beyblade, B-Daman, Da
Vinci Learning.
METROPOL LISANS: Tarcin and
Friends, Caillou, Arthur, Louie, Pin y
Pon, Marsupilami, Pocoyo


25
:
ABKA KIRTASIYE -

ADORE TOYS -
ARIKAN SAAT -
BANAT -
BUCURUK -
DEDE / FEN TOYS -

DEGAR KIDS -
DOGAN EGMONT - ,

DOLU PLASTIK -

DONMEZLER LISANS - ,
, , ,

FURKAN GROUP -
HAKAN CANTA - ,
,
HOBBY / OZANTEKS -

STIKBAL MOBILYA - ,

KESKIN COLOR -

MARKAEVI -
ZDILEK EKSTIL -
, ,

PANINI - ,

PASABAHCE -
ROLY POLY / YASIN -

TOTAL LICENSING NEW EUROPE


ROYAL HALI -
SESLI TEKSTIL -
TAC / ZORLUTEKS -
, ,

UGUR / ZIYLAN / FLO / POLARIS
YAYGAN CANTA -
, ,
,

25 /
:
ANGEL CAT SUGAR
BAKUGAN
BARBIE
BEN 10
CAILLOU
CARS
CHUGGINGTON
CILLE
DOMO-KUN
DORA THE EXPLORER
HELLO KITTY
ICE AGE
KELOGLAN
LOONEY TUNES
MICKEY MOUSE CLUBHOUSE
MY LITTLE PONY
NINJA TURTLES
POCOYO
SPONGEBOB SQUAREPANTS
STAR WARS
STRAWBERRY SHORTCAKE
SUPERMAN
THE SIMPSONS
TRANSFORMERS
WINX



1963
Pedigree Toys Ltd,
Bros Ltd, 100 .
2013 50 .

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2013 50-
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Licans
Medya Yahinclik Reklam Paz. Dag. Ve
Dis Tic, Ltd, Sti
.

Trkiye

Lisans Medya

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Lisans Medya ,
,

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M.Esat Yalvak, Lisans Medya TLNE ,

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67

TOTAL LICENSING NEW EUROPE


By Danny Simon,
President of
The Licensing Group
danny@tlgla.com
+1.323.653.2700 x20

Pricing your Intellectual Property


material for licensing
So, whats the price of that license over there?
In every licensing course or seminar
I have conducted on the topic of
licensing, and there have been many,
I always make it a point to remind
those in attendance that licensing is
all about the money. That is the most
significant reason that most undertake the effort to make their intellectual property rights available for use
by third parties.
I know, someone reading this is muttering to himself, that I got it wrong.
The real underlying reason is based
on the concept of use it or lose it,
putting IP material into the market in
order to keep trademarks current by
proof of use in various categories. As
logical as that may sound, for most of
us the real reason we pursue licensing of our properties is that we want
to see profit from such use of the
material.
Looking objectively at a property,
mark, trademark, or IP material I
list them all here as I plan to use
them interchangeably and figure
that by telling you this up front I will
lessen the chance of any confusion
it is hard to know what if any value
that raw mark has. Frankly, it may
not have much value at all. Did I just
hear someone cough? Simply because
you spent a bunch of time and some
money to create a property, then
spend cash to have it trademarked,
more money on slick artwork and
sales materials does not guarantee
that you have produced something
that has significant monetary value.
Return for a moment to the statement above concerning IP materials
not being guaranteed a value. The
value being referenced here is that
which pertains to its value in the
marketplace as a licensed property;
specifically, what the property is

68

search engine out there, or by calling


LIMA, the licensing industry trade association. No such thing exists.

worth in terms of advances, guarantees and royalty percentages. What


should not be inferred from that
statement is that if a (new) property
does not have an established value
then likely it has no value. The very
fact that as a trademark a property
acquires certain legal protections accords it some added value.
The question then becomes what
is the key element that determines
whether or not a property has value
or will become valuable in the sense
that it translates to the generation of
royalty income? The answer: demand.
Properties that can capture attention,
fulfill a need, touch the heart, entertain, provide services, or maybe just
evoke laughter on a scale sufficient
to attract the attention and desire of
qualified third parties to obtain certain rights, generates value.
This all sounds good, trademarks
have an inherent value, and demand
is the key ingredient in establishing a
market for a property, but where do
you locate a licensing industry rate
card that provides the guidelines for
the sale and purchase of a license in a
particular product category? You will
not find it on Goggle, or on any other

Name an industry, a product, service,


or any thing else bought and sold that
operates on the scale that the licensing industry does (about 140 billion
worldwide) without the benefit of
any pricing guidelines whatsoever. As
an example, a T-shirt license deal can
closes with no advance or guarantee,
whereas a license for the identical
product rights for a disparate license
can fetch a seven figure advance.
Clearly, it is not the product category
that is the determining factor in setting the financial terms. If it were,
then there would be some consistency between the costs of licenses
within each product category, which
there is not. However, the product
category does play a role in formulating the level of financial terms.
We are going to digress for a moment (Note: digression is like a literary bump in the road, but without
the need to hold on). I often say that
there are no dumb questions, only
stupid answers. Actually, there is one
dumb question: how much is that
license? You would be amazed how
often that question is asked. As proof
that my statement above is true regarding dumb answers, I know many
of my fellow licensors who would be
ready with to respond with a price
quote.
How in the world can anyone quickly
respond with what the cost would
be to obtain the exclusive rights to
a property for use in say the T-shirt
product category?
The only answers I have ever come
up with are the following:
Department budgets demand that

TOTAL LICENSING NEW EUROPE


each licensing deal negotiated generate not less then X dollars per
deal. Therefore, every deal has base
terms which any license cannot drop
below. This base level price becomes
the licensors bargain basement
structure, the cheapest deal that can
be offered.
Department budgets demand
adherence to a set of negotiating
standards by which each category of
product will generate not less than
X dollars. Therefore, in order to
meet the years projections, the licensor must obtain not less than X
for any deal he/she negotiates for
that product category.
Licensor simply makes up a number,
hoping the potential licensee will say
yes.
In my opinion, none of these are
acceptable methods of negotiating a
license for the reason that the word
rational can be applied to whatever
terms the licensor is seeking. There
is simply no means by which the
licensor can rationally explain what
his terms are based on, other than
the old department favorite, we
just cannot do a licensing
deal for less than that.
Personally, I have
never understood the
logic of that response.
I will share with you my
method of negotiating a license,
which quite frankly, is a relatively easy formula to comprehend.
It is based on placing the
licensee in the position as
the party most responsible
for developing the terms
(advance and guarantee) of the offer,

as it is dependent on understanding
what the potential sales volume of
the license product will be over the
life span (term) of the license.
The following are the steps:
1. Determine the royalty rate.
2. Obtain the licensees estimated
wholesale price per unit.
3. Multiple the royalty rate times the
units wholesale price to determine
the royalty per unit cost.
4. Obtain from the licensee his estimated sales of licensed article(s)
during the term.
5. Multiple the per unit royalty times
the estimated sales figure this will
provide you with the estimated gross
royalties you should receive during
the term of the license.
6. Use this gross royalties earning
figure as the basis for negotiating the
guarantee and advance.
7. As it is doubtful that any licensee
will commit to a guarantee and/or
equal to the gross royalty number,
most likely the both will be a percentage of that number, often 50%25% of the estimated gross
sales.

There are several important factors to consider when negotiating a


licensing agreement. As a property
owner, in most insistences the income you will derive from licensing
your property will be from royalties
paid by the licensee. For the vast
majority of these licenses the royalty
is based on the wholesale price of
the licensed product not the retail
price point. Furthermore, royalty
rates can fluctuate not only between
categories, but also within the same
product category.
Before you begin the negotiating
process, you should already know the
royalty percentage figure you want
to achieve. If you are unfamiliar with
what royalties are for a certain product category, I highly recommend
the following publication: Licensing
Royalty Rates. The book is published
yearly by Aspen Press, and it features
a complete listing of just about every
conceivable product and (separate)
corresponding average royalty rate
for: Art, Celebrity, Character/Entertainment, Collegiate, Corporate,
Designer, Event and Sports categories. A marvellous work, this handy
guide will help insure that you do not
make a mistake by accepting a royalty
that is below industry standards
for the category for which you
are negotiating.
Another important factor
is whether or not you are in
agreement with the sale estimates
as provided by the licensee. As
the licensees sales estimates
provide the basis for negotiation of the financial

69

TOTAL LICENSING NEW EUROPE


terms under the formula presented,
the question is how accurate/believable are sales estimates provided by
the opposing side of a negotiation,
knowing that such numbers could
or will have impact on negotiating
the financial terms of the agreement? Simple, knowing that any sales
estimates provided are going to be
below actual sales forecasts (perhaps
by as much as 50%), it means that the
sales estimates already provide a discounted sales percentage, which you
can then factor into negotiating the

METHOD OF
NEGOTIATING
LICENSE COST

EXAMPLE:

STEP 3
Multiple the royalty rate
times the units wholesale
price to determine the
royalty per unit cost.
Royalty per unit:
$1.00 x 10% = $0.10

securing a few more dollars in advance or guarantee commitments.

cases, generic (non-licensed) product


which may be very similar to the
licensed version but minus a cartoon
One note of caution concerning the
character or nifty graphic adorning
level of royalties, there is a very real
its packaging and sitting not too far
limit on what the licensor can or
away -- can retail for twenty cents
should demand in terms of the level
less, and still provide the consumer
of royalty. It is very important to rewith the same basic product. Also, as
member that the cost of the royalty
the royalty cost ads to the overall
is actually borne by the consumer, as
cost of goods, it may impact on the
it will be reflected in the sales price
ability of the licensee to place the
of the product; the amount of which
product with retailers. This is espewill be twice the sum paid by the licially true when licensees are selling
censee to the licensor. As the royalty
into mass market retailers. At this
level of retail where margins
can be razor thin, the royalty
level is even more critical. In
STEP 2
many cases, licensees will
STEP 1
Obtain the licensees
often negotiate for a lowDetermine the royalty rate.
estimated wholesale price
er royalty level on sales
per unit.
of products to the mass
market due to the need to
bring down the wholesale
Royalty rate: 10%
Wholesale unit price: $1.00
price point to the lowest price point possible.
The rational for agreeing to a
STEP 5
stipulated lower royalty for
STEP 4
Multiple the per unit royalty
mass market sales is that
Obtain from the licensee
times the estimated sales
the potential for high
his estimated sales of
figure this will provide
you with the estimated gross
sales volume compenlicensed article(s) during
royalties you should receive
the term.
sates
for the reduction in
during the term of the license
the royalty rate.
Gross sales estimate:
1000 units

STEP 7
As it is doubtful that any licensee
will commit to a guarantee and/or
equal to the gross royalty
number most likely the both
will be a percentage of that
number, often 50%-25% of the
estimated gross sales.

Gross royalties:
1000 units x $0.10 = $100.00

is calculated on the
wholesale cost of
goods, the licensee
will factor the royalty cost into the
product cost when
quoting a wholesale
Advance: 50%-25%
Guarantee: 50% of $100 = $50.00
sales price. If for
of $50-$25 = $25-$12.50
or 25% of $100 = $25.00
example the royalty
per unit is ten cents,
advance and guarantee figures based
when the manufacturer adds
on the sales forecasts provided.
that cost to his product, when the
All too often we place a disproporproduct reaches the consumer, the
tionate importance on the obtaining
retail price is likely to have doubled
a high advance and/or guarantee,
due to the retailers markup. Thus the
when in fact the most important
ten cents of royalty has now become
factor in most licensing agreements,
a cost to the consumer of an adin terms of generating income to the
ditional twenty cents added to the
licensor, is the question of the royalty
products cost.
level. An extra point of royalty well
may be far more valuable over the
While this may not sound like much
term of a successful license, then a
difference, consider that in some
STEP 6
Use this gross royalties
earning figure as the basis
for negotiating the
guarantee and advance.

70

How Much Is That License? Hopefully, based


on what you have read
above, you have a better perspective on that question. The answer is
it cannot be found on any rate card,
nor should it be a knee jerk response
from the licensor based what the
needs are to meet some internal
income forecast projection.
The answer can only be achieved
through meaningful dialogue between
the licensee and the licensor based
on an understanding of what is a likely and reasonable quantity of product
that is likely to be manufactured,
produced and distributed throughout the territory during the term of
the license. It is the only basis, in my
opinion, to reach a fair and rational
licensing deal between the parties.
As always, wishing you

HAPPY LICENSING!

TOTAL LICENSING NEW EUROPE


,
,
The Licensing Group
danny@tlgla.com
+1 323 653 2700 x20

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TOTAL LICENSING NEW EUROPE


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TOTAL LICENSING NEW EUROPE

Whats on

Buybrand/Licensing Salon - Moscow.............. Oct 2 - 4.......................................................................www.buybrandexpo.com


MIP Junior............................................................. Oct 5 - 6.............................................................. www.mipcom.com/mipjunior
MIPCOM............................................................... Oct 7 - 10............................................................................... www.mipcom.com
Frankfurt Book Fair............................................ Oct 9 - 13............................................................................. www.buchmesse.de
China Licensing Show........................................ Oct 15 - 17............................................................................ www.tjpa-china.org
Brand Licensing Europe - London................... Oct 15 - 17......................................................................www.brandlicensing.eu
Toyzeria - Istanbul............................................... Oct 31 - Nov 3............................................................... www.toyzeria.com/en/
Dubai Licensing Show........................................ Nov 18 - 19..............................................................................www.character.ae
Hong Kong Licensing Show.............................. Jan 6 - 8 2014...............................................www.hktdc.com/hklicensingshow
Toy Fair - London................................................ Jan 16 - 19.................................................................................www.toyfair.co.uk
Nuremberg Toy Fair............................................ Jan 29 - Feb 3................................................................................ www.toyfair.de
Kidscreen Summit - New York......................... Feb 9 - 12..............................................................summit.kidscreen.com/2014/
Toy Fair NY - New York.................................... Feb 16 - 19............................................................................. www.toyfairny.com
DISCOP West Africa - Istanbul........................ Mar 4 - 6.....................................................................www.discopwestasia.com
Toys & Kids Russia - Moscow.......................... Mar 12 -14......................................................................... www.toyrussia.ru/en/
Bologna Licensing Trade Fair............................ Mar 24 - 26.............................................................. www.bolognalicensing.com
Bologna Childrens Book Fair........................... Mar 24 - 27...........................................................www.bookfair.bolognafiere.it
Kazachok Licensing Forum - Paris.................. Apr 1 - 2................................................................................ www.kazachok.com
Surtex - New York.............................................. May 18 - 20 ............................................................................... www.surtex.com
NEM [New Europe Market] - Dubrovnik..... June 12 - 14..................................................................www.neweumarket.com
Seoul Licensing & Character Fair 2014.......... June 16 - 20........................................................................ www.characterfair.kr
Intl Licensing Expo - Las Vegas........................ June 17 - 19.................................................................. www.licensingexpo.com
NATPE Europe - Prague.................................... June 23 - 26.................................................................................www.natpe.com

76

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