Welcome to the May issue of Licensing4Profits. 

 

Board games are big business but getting a new game into the market can be a high risk venture.  In this month's featured article, Licensing Board Games: A Low Risk Strategy for a Highly Competitive Market, we discuss several ways of licensing your board game, and what to watch out for when negotiating the terms of your agreement.

A big obstacle to making money with intellectual property is the way you think about it. In this month's featured e-course, The Licensing Mindset: How to Think Like an IP Entrepreneur, you'll learn how to think outside the "tangible asset" box and why the most successful businesses are created with a licensing model.

    

Rights to renew is often an important clause in a licensing agreement...especially if the partnership proves to be profitable. In our next article, Key Terms & Conditions: Option to Renew you'll find out about two ways to negotiate this clause and how to determine which one is best for you.

Learn what ice, a soda drink, and a famous TV series have in common in This Month in IP History.

We conclude with this month's question "I have an idea for a new app that would help an on-line payment processor increase its market share. How do I go about licensing it?"

Enjoy!

 

Board games are a multi-billion dollar industry, generating over $1.8 billion dollars in 2013. Although the market is growing, getting a new game into the market is a high risk venture.

 

In today's competitive game marketplace, licensing can be a faster and lower risk way to commercialize your board game. Before licensing your game, you'll need to identify and protect your IP rights. Keep in mind, your game is developed from several types of IP including trademarks, copyrights, and in some cases even a design patent.

 

Your game name as well as character names, logos, graphic designs are part of your trademark. Distinctive card layouts and game pieces can be protected as trade dress. Your copyright covers your game theme and includes the written rules, game board, card artwork, and other elements. How the game looks can be protected as a design patent, which can prevent others from creating a game that looks similar to yours.

 

For example, one of the world's best known games is Monopoly. Its trademark is a well-known brand name. It's distinctive artwork such as the railroad icon, the images for the "Jail," "Go to Jail," and "Free Parking" spaces, game cards (i.e. Chance and Community Chest card designs), and the game's money are all protected as copyrights and trade dress. There was also a patent on the Monopoly game, covering the rules, game layout, player movement, and the real estate aspects (i.e. rent, buildings, etc) of the game.

There are several ways board games can be licensed. For example, you could make and sell your game, as well as license it to a different company for publication and distribution in another country. Another option is licensing different formats, such as a PC game played against the computer, or as an online version for multiple players. You can also license by platform, limiting each license to a one or more such as iPod or Xbox.

 

The first thing a potential licensee will want is information about your game. Develop a short licensing profile outlining the board game, why it's better, and how it fits the licensees business. Game companies get lots of submissions, so tailor it for each licensee and make sure it's concise and to the point.   

 

If you license internationally, be clear you own the rights to the foreign versions. For example, they may want to develop an expansion, such as an additional game board or new components to integrate with the original game. 

 

Make sure the royalty is payable on the licensees net sales and includes any derivatives (i.e. modifications or changes) of your board game. Detail the formula to be used when calculating the royalties, such as per unit or per download.  

 

Be sure to include performance clauses that specify when they'll start selling the game, and a minimum guarantee or amount of royalties payable during the licensing term. If a licensee wants a renewal, it should be based on reaching a certain sales or royalty payment benchmark (for example 150% of the minimum guarantee).  

   

Before disclosing any confidential information, it's always advisable to get a signed NDA. Otherwise you run the risk of someone coming up with "their" version of your game 

 

Licensing your board game is often a faster and lower risk route to the market. Before licensing your board game, make sure you've registered your trademarks and copyright elements, and if your game is unique and novel enough, consider a design patent. When licensing your board game, make sure you're clear about what makes your game unique. Research potential partners to make sure your game fits their business model. Develop a compelling presentation that shows the licensee why your game is different and how they will make money with it.  Most important, before signing any licensing agreement, be sure to review it with your legal counsel. 

Feel free to pass this newsletter along to friends and associates. You can visit our websites (www.licensing4profits.com and www.licensingcg.com) to view our blog, special reports, published articles, webinars and audio presentations.

If you are interested in learning about our consulting services, please contact us at (646) 395-9572 or email info@licensingcg.com.  

 

Best regards,

 

President & CEO