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The Money Making Power of Licensing 

 
July 2013
Issue  

Greetings!

 

Welcome to the July issue of the Licensing 4 Profits newsletter.  

We begin with a little culture in the licensing marketplace.  If you are looking for a well known, classic IP brand to license, consider a visit to your local museum. Cezanne, Van Gogh, and Renoir, are just a few of the museum "brands" you'll find.  Find out more in the months Leveraging IP article.

Are you ready to start selling your licensing deals and wondering where to start? In our Strategy Session article, we review what steps to take and two secrets to getting the first licensing deal. 

If you missed it, here's another chance to experience the coaching replay on How to Identify and Inventory Your IP Assets. Click this link to view this replay: http://tinyurl.com/lmlx9ng. 

 
In a situation where the IP owner is licensing multiple partners, a current licensee may want to make sure that they will always have the best deal terms.  This is known as the Most Favored Licensee clause, which we discuss in this months Key Terms and Conditions article.

Take a look at this month's Video Licensing Lesson and find out why licensing can create a bigger money making opportunity for your IP.

Learn what beer manufacturing, a 1960's TV show and a baseball team have in common in This Month in IP History.

We conclude this month's newsletter with the question, "
Is there a way to get an option on licensing rights to an intellectual property?"

 

Enjoy!

 

New Licensing News from LCG 

 

 

Leveraging IP: The Art of Museum Licensing
Museum If you are looking for a well known, classic IP brand to license, consider a visit to your local museum. Cezanne, Van Gogh, and Renoir are just a few of the museum "brands" you'll find.

Museums are using licensing to showcase their exhibits and generate revenues.  Licensing programs focus on maintaining the integrity of the exhibit designs through either a "period" or "inspired by" collection, with the exhibit IP in their name, logos, trademarks and designs.


Some popular exhibits can develop large licensing programs. For example, the Art Institute of Chicago created a Van Gogh/Gauguin licensing program based on the collection that included several hundred products in 50 different categories.


Licensing opportunities with Museums can be lucrative. The Philadelphia Museum of Art developed a line of Cezanne products that were featured on QVC. The show grossed over $7 million and included products such as framed reproductions and scarves. Other museums doing similar programs include the Boston Museum of Fine Art, The Metropolitan Museum in New York and the Smithsonian Institution in Washington DC.

The "Experience Economy" environment has created new opportunities for licensing museum exhibits. Museums not only educate but they entertain and provide an "historic" experience for the consumer. Museums are becoming inventors and innovators of these experiences with the use of new media and technology to communicate with their audience about their collections. And consumers are attracted to the "inspired by" products that have the museum "seal of approval" and give them a tangible piece of the exhibition experience.

Strategy Session - Two Secrets to Selling the Licensing Deal

First licensing deal When you are ready to start selling your IP licensing deals, the first step is to create a written licensing agreement.

If your IP has many licensing options, then  decide how many licensees to work with. Limiting the number of licensees can make it easier to control your licensing program. On the other hand, having a variety of licensees means more revenue opportunities.

 

Finding the first partner can be challenging. They are often the most difficult to obtain, although you may get started as a result of someone approaching you about licensing. Consider a partner in close geographic proximity so it's easier to meet with them.

There are a number of resources you can use to find candidates. The Internet, trade shows and trade magazines are great for researching and meeting potential partners.  One of the best ways is through word-of-mouth networking at seminars, conferences and trade shows.

 

Create a website that explains the licensing opportunity. Use social media to connect with potential licensing partners. Focus your marketing activities on driving candidates to your website to get information about your IP.

The two success secrets to selling your licensing opportunity are building relationships and securing a reference licensee.

The first secret is the best licensing deals are created by people who build a relationship and long term partnership. The most successful licensor is one who is genuine and wants the licensee to make a profit.

The second secret is that your first partner becomes your reference licensee. Other potential partners speaking to an active licensee will be one of your strongest selling points.

Offer a great deal to your first licensing partner. Keep the licensing fee low (consider no initial payment and royalties only) so it's attractive for this partner.

This first partnership also helps you learn how to make your IP licensing opportunity more attractive to other licensees.

Feel free to pass this newsletter along to friends and associates. You can visit www.licensingcg.com to view other free reports and presentations.  If you are interested in learning about our consulting services, please contact us at (646) 395-9572 or email

[email protected].

 

Best Regards,

 

 

Rand Brenner

 

 

 

Rand Brenner

President & CEO

Licensing Consulting Group

 

 

 

 

 

 

About Rand Brenner  

Rand has licensed some of the biggest Hollywood blockbusters, including "Batman" and the "Mighty Morphin Power Rangers", both of which generated billions of dollars in worldwide merchandise sales. His career included executive positions at Saban Entertainment and Warner Bros Consumer Products where he developed numerous licensing and promotional deals with Fortune 1000 companies.  

 

Rand Brenner is the President & CEO of Licensing Consulting Group, a full service intellectual property management company.  LCG provides IP management, strategy consulting, and property representation. For more information, please visit our website or send an email to [email protected].
In This Issue
Leveraging IP - The Art of Museum Licensing
Strategy Session - Two Secrets to Selling the Licensing Deal
Video Licensing Lesson - Licensing Builds a Bigger Pie
Key Terms & Conditions - Most Favored Licensee
IP Licensing Academy - Coaching Replay Webinar
This Month in IP History
Ask Rand Brenner
Featured Article
Latest Blog Postings
Video Licensing Lesson
Licensing Builds a Bigger Pie
Licensing Builds a Bigger Pie

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Intro to Lic P1 

Trade Shows - August 2013

Surtex Asia 

 

More Trade Shows

http://www.biztradeshows.com/august-trade-shows.html  

Key Terms & Conditions - Most Favored Licensee

IP Agreement
This clause is typically used in a non-exclusive licensing deal. In a situation where the IP owner is licensing multiple partners, a current licensee may want the clause to make sure that they will always have the best deal terms. If the IP owner licenses another company at better terms (for example, a lower royalty rate), then this clause would define the process for adjusting the current licensee's agreement to the same terms.

Typically the clause requires the IP owner to notify the current licensee of a deal with better terms. Since it's usually an all or nothing option, if they want the better deal, the current licensee has to accept all the terms. There's also a time limit in which the current licensee has to respond. If they don't respond in time, they lose their option to get the better terms.

When preparing or reviewing a licensing agreement, it's always best to seek qualified legal advice before you sign anything. 

Coaching Replay Webinar - How to Identify and Inventory Your IP Assets

IPLA logo
If you missed it, here's another chance to experience the coaching replay on How to Identify and Inventory Your IP Assets.  

 

Click this link to view the replay:  http://tinyurl.com/lmlx9ng

 

Here are a few quotes from those who attended:

  • "I never realized statistics were IP."
  • "I never thought of service as IP." 
  • "The info you are giving is great....makes this IP area seem less intimidating and provides really good food for thought when starting out."
  • "The most valuable thing for me today (other than the great coaching) was to hear from others about their questions and IP ideas."

After experiencing this coaching session, you will come to realize that your customers, software, systems, procedures, work product, business practices, marketing and sales materials, service approaches, logos, titles, and dozens of other overlooked assets are ALL potentially very valuable intellectual property!

 

You can't imagine how much value you have hidden in plain sight--you just have to know how to find it. 

 

If you're ready to turn your IP into income and your wisdom into wealth, watch or listen to the coaching and Q & A replay.  

 

Click this link to view the replay:  http://tinyurl.com/lmlx9ng 
This Month in IP History
  • 1873 Louis Pasteur received a patent for the manufacture of beer and treatment of yeast.
  • 1960 The first episode of "The Andy Griffith Show" was copyright registered.
  • 1975 The Detroit Tigers name is trademark registered.

 

Source:About.com

Ask Rand Brenner 

   

Q:  Is there a way to get an option on licensing rights to an intellectual property?

 

A: Yes, this is a strategy you can use with an IP that still needs some development or to test its market potential. The option would be part of a licensing agreement.  There are a number of ways you could structure the deal. For example, the rights to the intellectual property could be acquired in stages.

 

For example, stage one could option the rights to test the IP over a period of time.  You could agree to a certain benchmark, such as number of units sold or amount of revenue that if reached, would automatically exercise the option and create a long term agreement.

 

The agreement could also require a payment of some sort when the option is exercised, or the money invested for the test marketing could be credited toward royalties. 

 

Got a question about licensing? Send an email to [email protected]. You'll get an answer to your question which will be included in a future issue of this newsletter.
Licensing4Profits Store
 
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Expertise IP - If you are a Consultant, Coach, Speaker, Author, Trainer or other service based business professional, you can license your Professional Expertise, generate more money, and take your expertise to a far wider audience than you can ever achieve single handedClick here for more details.
Acquiring IP Rights - Do They Fit - 06-12-2013 05:49:56 AM
The information in this newsletter is presented by Licensing Consulting Group as a service to the subscribers. Although the author attempts to keep this information current and accurate, he makes no warranty or guarantee that it is correct, complete or up-to-date. This newsletter may contain links or be linked to other web sites not maintained by Licensing Consulting Group. The author makes no representations, express or implied, with respect to the materials and information provided on any third-party web site linked to this newsletter, including any representations as to the accuracy, timeliness, reliability or completeness of any material or information on such linked site. Inclusion of a link in this newsletter to another web site does not imply recommendation, approval or endorsement by the author of the linked site.