LICENSING IS ALL AROUND YOU

1
LICENSING IS ALL AROUND YOU

• BRAND CHARACTER LICENSES
• Star Wars and Mattel
• Eddie Bauer and Ford Explorer
• CULTURAL INSTITUTIONS LICENSE
• MNM, Smithsonian, Williamsburg
• DESIGNER LICENSES
• Virgil Ortiz Tucci, Beaulieu, Casillas
• Todd Scalice G. Coles Christianson Rugs
• Ramona Sackistewa Pendelton

2
WHAT IS LICENSING

• Contractual agreement between two business
  entities in which the licensor (Martha Stewart,
  MNM, NBA) permits the licensee (Kmart, King
  Hickory, Nike) to use a brand name, designs,
  archives or other proprietary right, in exchange
  for a fee or royalty.
• Licensing enables the licensor to profit from the
  skills, expansion capital, or other capacity of
  the licensee. Licensing is often used by
  manufacturers to enter markets in which they have
  no prior exposure or to stand out from the
  competition.
• The creators of popular comic strip and movie
  characters often license the use of a character's
  likeness to manufacturers of lunch boxes,
  clothing, and toys. The popularity or familiarity
  of the character helps otherwise undistinguished
  products to stand out from their competitors.
• The licensee benefits from the name recognition
  and creativity of the licensor. Licensing fees
  range from 5 to 25 of the wholesale price.

3
WHO ARE THE PLAYERS

• LICENSOR the owner of the property, brand,
  design or character. (MNMF, Disney, Martha
  Stewart, artists, designers)
• LICENSEE manufacturer of product to which the
  Licensors brand, logo or character is applied.
  Or retailer developing and selling product to
  which the Licensors brand, logo or character is
  applied. (Ford, King Hickory, Kmart, Target,
  attendees at seminar)

4
RESPONSIBILITIES OF LICENSEE LICENSOR

• LICENSEE responsible for manufacturing,
  warehousing/shipping, selling and marketing
  product, and paying royalty fees.
• LICENSOR oversees design process and approval of
  all products. Responsible for providing access to
  designs and/or logos, guidance on design/logo
  use, sales marketing materials, and aiding in
  promotion of the product.

5
BASICS OF A CONTRACT

• LICENSED PRODUCT products to be developed
  (rugs, furniture, lighting)
• TERM length of contractual obligation
• ROYALTY RATE -- of the net wholesale paid to
  licensor (avg. between 5-25).
• DISTRIBUTION CHANELS dept. stores, big box,
  specialty retailers
• TERRITORY US, Asia, Europe, Worldwide?

6
IS LICENSING AN OPPORTUNITY FOR YOU?

• If you are a painter does your style lend itself
  to surface design? Would your images be
  interesting to audiences beyond New Mexico in
  other words are they marketable nationwide?
• If you are a designer can your translate your
  designs to other mediums or products?
• If you are a furniture maker or manufacturer and
  have the capacity to make/market/and sell product
  perhaps you want to partner with a designer
  and/or seek out a license to elevate your brand.

7
WHAT KINDS OF PARTNERS IS MNMF SEEKING?

• MANUFACTURER/PRODUCER this means using MNM
  archives to develop product sold and distributed
  by manufacturer
• Categories MNMF seeking lighting, furniture,
  table top, bedding, throws, pillows, hardware,
  paint.
• In considering potential licensees, MNMF asks
  manufacturer do you?
• have sizable market share or representation in
  particular market?
• ability to sell the product in multiple
  distribution channels?
• adequate production capacity to service demand?
• national sales force and/or capital to promote
  product nationwide?
• ARTISTS/DESIGNER this means partnering with
  MNMF to develop designs we license to
  manufacturers and share in the royalties.
  Questions to consider Are you?
• Skilled at surface and/or industrial design
• Is your style particularly unique or is your
  product or artwork unique
• Are you willing to adapt your designs and share
  in royalties

8
WHAT LICENSING CAN DO FOR YOU

• Introduce your brand/art/designs into markets
  beyond New Mexico
• Generate additional revenue without large
  investment
• Provide new opportunities for collaboration
• Challenge you to look at your work in a new way