Licensing SPORTS AND ENTERTAINMENT MARKETING What is licensing

Licensing SPORTS AND ENTERTAINMENT MARKETING

What is licensing? �A legal agreement that allows a company the right to use another’s brand name, patent, or other intellectual property for a royalty fee

Why is Licensing Important �Licensing generates income for sports organizations and entertainment events �Offers companies additional access to their target markets

Licensing is NOT: �Branding: Branded items do not use another company’s trademark �Sponsorship: When a company pays to affiliate itself with a team or event �Endorsement: A company pays an athlete or team to promote its products by wearing or using them

Licensors �Licensor: the company that holds the rights to trademarked property �Examples: The NFL Virginia Tech Pittsburgh Penguins

Licensors �Types of SEM Licensors: Sports Leagues Individual Teams Individual Athletes Entertainment Companies Individual Entertainers

Licensees �Licensees: The company that wants to manufacture and sell products using trademarked property �Examples: Clothing (Reebok, Nike) Video Games (EA Sports, 2 K)

Who is the Licensor? Licensee? �Licensor: Minnesota Twins �Licensee: Watch Manufacturer

Who is the Licensor? Licensee? �Licensor: NBA Kobe Bryant �Licensee: 2 K Sports

Who is the Licensor? Licensee? �Licensor: Kentucky Wildcats �Licensee: Nike is licensed (given permission to sell”) items containing the Kentucky logo.

Licensed Products �Example �ANYTHING can be licensed � Key chains, banners, furniture, jewelry �Clothing = 60% of all licensed sport merchandise sales � T-Shirts are the most popular item of all

How Do Licensors Get Paid? �Guarantees: The fee a licensee pays up front to use the trademarked property Based on Expected Sales �Royalties Percentage of the actual sales

Licensor Advantages Disadvantages Increased profits with marketing process little extra work Low Risk Free advertising Build brand awareness Loss of control over Inability to: � guarantee quality �control prices �control where merchandise is sold

Protecting Property �Trademark Without a trademark, anyone could use your logo and profit from it With a trademark, they are charged to use your logo

Protecting Property �Trade Dress Refers to visual characteristics of a product or its packaging Includes � Color schemes � Textures � Design, shape and placement of words, graphics and decoration

Trademark Infringement The reproduction, copying, or counterfeiting of a registered mark There is up to $1 Billion worth of counterfeit products each year

Review 1. What is licensing? Who is the licensor? The licensee? Answer on your own paper in 2. How do licensors get paid? COMPLETE SENTENCES! disadvantages of being a Once done, go over answers in class 3. What are the advantages and licensors? 4. Why is trading marking products and ideas important?