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Best Practices in Trademark Licensing

Published by: EPM Communications Inc

Published: May. 1, 2003 - 32 Pages


Table of Contents



Executive Summary

Overview of Corporate Trademark Licensing

Survey Introduction and Methodology

Organizational Structure

Responsibilities

Department Staffing



Licensing Activity

Licensing Agents

Licensing Compensation and Funding

Royalty Rates

Guarantees and Advances

Product Development Time and Contract Terms

Advertising and Marketing



Financial Contribution To Licensing

International

Accounting For Licensing

Performance Measurement



Conclusion



LIST OF FIGURES

Retail Sales Of Licensed Trademark/Brand Merchandise, By Product Category, U.S. & Canada, 2002

Retail Sales Of Licensed Trademark/Brand Merchandise By Channel Of Distribution, U.S. & Canada, 2002

Retail Sales Of Licensed Merchandise Based On Trademark/Brand Properties, U.S. & Canada, 1993-2002

Retail Sales Of Licensed Merchandise, Worldwide, By Property Type, 2001

Importance Of Corporate Trademark Licensing In Selected Worldwide Markets, 2001

Retail Sales Of Licensed Corporate Trademark-Based Merchandise, Worldwide, By Territory, 2001

Where Trademark Licensing Exists Within Corporation

Who Is The Senior Manager/Executive To Whom Trademark Licensing Reports?

Geographic Areas Handled By The Trademark Licensing Department

Product Categories Handled By The Trademark Licensing Department

Selected Responsibilities Of The Trademark Licensing Department

Number Of Full-Time Employees In The Trademark Licensing Department

Trademark Licensing Department Reporting Structures

Percentage Of Licensing Revenues Attributable To Top Trademark

Territory Covered By Master Licensing Agent

How Licensing Agents Are Compensated

On What Is Your Royalty Percentage Based?

Allowable Deductions From Net Sales

Time Period To Which The Guarantee Is Tied

Percentage of Expected Royalties Used To Calculate Guarantee

Do You Require An Advance?

How Do You Calculate Your Advance?

Average Time From First Contact To Contract Signing

Average Time From Signing of Contract To First Receipt Of Royalties

Average Term Of Original Licensing Contract

Do You Allow Automatic Contract Renewals If The Licensee Meets Certain Performance Milestones?

Do You Charge A Royalty For Merchandise Sold To Another Group Within The Corporation For Promotional Purposes?

Do You Require Licensees To Contribute To A Central Marketing Fund?

Licensing Revenue As A Percentage Of Total Corporate Revenue

Licensing Income As A Percentage Of Corporate Net Income

Contribution of Licensing To Corporate Income Versus Corporate Revenue

Percent Of Total Licensing Revenue Attributable To International Territories

Where Is Licensing Revenue Recorded Within The Company's Income Statement?

Where Are Licensing Expenses Charged Within The Company's Income Statement?

Does Your Department Have Its Own P&L Statement?

How The Licensing Department's P&L Is Used

How The Licensing Department's Performance Is Measured


Abstract

Model your trademark licensing operation on benchmarks from the best in the business with Best Practices In Trademark Licensing. In this landmark survey you'll receive integral information, such as how trademark licensing is organized, staffed, and accounted for within the corporation; how royalties, guarantees, and advances are structured for trademark licensing deals; how financial and non-financial yardsticks are used to measure performance. This report is your trusted guidebook into the trademark/brand licensing enterprise

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