In 1999, trademark and character owners generated an impressive $5.6 billion in royalty income from global manufacturers, as revealed in a recent industry-sponsored report. This figure marked an increase of $148 million compared to the previous year.

The research, conducted by Harvard Business School and the Yale School of Management at the behest of the Licensing Industry Merchandisers’ Association, highlighted the dominance of the entertainment sector in licensing. It accounted for nearly $2.53 billion, representing a substantial 45% of the total licensing market.

Following closely was the trademark and brand name sector, capturing 17% of the market share.

This study's unveiling coincided with the kickoff of the 20th Licensing International Conference in New York City, showcasing a variety of brands including Harry Potter, Nickelodeon, and the World Wrestling Federation. The conference illustrated the expanding global landscape for intellectual property spin-offs.

Networking Opportunities

“This sector thrives on unique product offerings,” noted Charles M. Riotto, president of the Licensing Industry Merchandisers’ Association. “The event serves as a hub for innovative ideas and facilitates deal-making.”

Among the participants were representatives from internet-based brands, with 24 dot-com companies making their debut just a year prior, as pointed out by show director Diane Stone from Advanstar Group.

Attendees included several online content creators eager to enhance their brand visibility. One standout was the Burundis, a vibrant group of cartoon characters from Mexico. These characters, who navigate the digital world and engage with users through web surfing, have recently been acquired by Miami’s Bouncynet. They are featured in a series of flash-animated shorts and are aiming to penetrate the U.S. market, with backing for a television launch from Grupo Televisa in Mexico.

Emerging Players on the Scene An innovative online platform focused on business-to-business licensing has been launched by whatshotnow.com at a recent conference.

This new website enables potential licensees to acquire rights for creating products inspired by well-known brands, including major names like Coca-Cola and the 2002 Salt Lake City Olympics, which are among the initial participants.

Additionally, retailers can browse and purchase from a variety of licensed products offered by these licensees, ranging from toys to apparel.

Rob Fried, the chairman and CEO of WHN and producer of the 1998 film “Godzilla,” indicated that the platform will implement a subscription fee of $1,000 per month for both licensors and licensees following a complimentary six-month trial. Retailers, however, can access the site without any charges.

Fried anticipates that by the month’s end, the platform will have approximately 1,000 registered users, breaking down to about 500 retailers, 300-400 licensees, and 100 licensors.

In the realm of traditional media, New Line Cinema has recently finalized licensing agreements related to the Adam Sandler film “Little Nicky” and the cult classic mockumentary “This is Spinal Tap.”

McFarlane Toys is set to create action figures based on “Little Nicky,” while Ubi Soft will develop Game Boy Color software tied to the film. Furthermore, New Line has been chosen by Studiocanal to oversee licensing and merchandising efforts for “This is Spinal Tap” in conjunction with MGM’s re-release of the movie, in partnership with Studiocanal.

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