LEGAL: The Growing Importance of Morals Clauses PAGE 2 MARKETING: Webinar Wrap: What You Need To Know About Mexico PAGE 3 TRENDS: How 3d Printing Works PAGE 4 DEALS: Who’s doing what with whom PAGE 6 CALENDAR: Shows, Conferences and Meetings PAGE 8 INSIDELICENSING OCTOBER 6, 2014 As 3D Printing Trickles Into Consumer Market, IP Owners Dip Their Toes In The Water As 3D printing trickles into the consumer market, companies in the licensing business are trying to get ahead of the game -- to begin to understand how the technology works, to try to project how quickly it will become a meaningful player in the licensing business, and to figure out how they’re going to deal with potential IP rights issues that undoubtedly will arise when consumers gain the ability to “print” their own toys, collectibles and other goods. Sesame Street and Uglydoll displays at the MakerBot retail store in New York’s SoHo neighborhood. At least one entertainment industry executive compares these early days of 3D printing to the beginning of other businesses that challenged traditional models of IP ownership, saying the rights owners will have to learn how to account for 3D printing the same way “we had to learn how to deal with Café Press. “The 3D printing evolution could be thought of in a similar fashion,” said this executive, “as the power shifts more and more to the fan/consumer. Nobody is going to halt the trend; the challenge is to figure out how to embrace, legitimize CONTINUED ON PAGE 4 Licensing Is Global and Local, And Sometimes It Comes Out of Nowhere “Think Global. Act Local.” It’s a phrase that, by most accounts, dates back to the early ‘70s, and is widely referred to in an array of business, environmental and other applications. This is an age when communicatins technology -- the Internet, e-Commerce, etc -- makes it imperative that companies consider opportunities beyond their immediate vicinity, almost from inception. But even as the global nature of the licensing business is apparent, it’s important to remember that www.licensing.org many things start and take hold locally, and that even global competitors needs to be cognizant of individual competitive landscapes. The global nature of the business is brought into sharp focus when looking at box office figures from several of the recent months’ big theatrical film hits. As this is written, for example, DreamWorks Animation’s How To Train Your Dragon 2 has reaped 75% of its box office revenue from outside the U.S. That’s similar to the percentage of nonU.S. business done by Transformers: Age of Extinction. For Disney’s Frozen, the percentages are slightly less, according to the most recent count we’ve seen. About 32% of that film’s global box office has come from the U.S.; another 19% had come from Japan, the second-largest market for the film, as of mid-August. What makes the “Frozen” story – the business story -- so compelling is that nobody really saw this coming. That includes Disney. In region after region, as the film was rolled out globally, Disney and its licensees have struggled CONTINUED ON PAGE 2 Licensing Is Both Global And Local, And Sometimes it Comes Out of Nowhere CONTINUED FROM PAGE 1 – often unsuccessfully – to keep up with demand for product. When I polled LIMA offices around the world, anecdotal comments on Frozen were remarkably consistent. From Australia came word that “Disney have been scrambling to get key Consumer Products partners to bring forward shipments of most key category merchandise.” From Hong Kong the report was that “at HK Disneyland…costumes were sold out immediately when [cartons were] opened; the staff didn’t need to put them on the rack. There wasn’t nearly enough merchandise when the movie was released. Though we see more and more licensed merchandise recently in stores, there is still a strong demand and many of the better items are out of stock.” Reports from Europe and elsewhere told the same story. So the Frozen experience is a reminder that even from the biggest global entertainment companies, there is room for surprises. It’s also an object lesson that licensees and retailers need to keep an open mind about identifying the next big “ The Frozen experience is a reminder that even from the biggest companies, there’s room for surprises. It’s also a lesson that licensees and retailers need to keep an open mind about identifying the next big potential success. ” potential success. One of the refreshing aspects of this business is that a lot of the biggest hits initially flew into the marketplace at least a little bit under the radar. But as much as the huge global entertainment properties tend to dominate discussion, a property owner or licensee disregards local competitors at their own peril. A look at the first data from LIMA-commissioned research into kids’ favorite brands/properties in 31 markets around the world (conducted as part of the Brand Trends Research Project by Kidz Global), gives a great illustration that while kids around the world are attracted to many of the same properties and brands, a raft of local characters also play major roles. (In this research project, children were asked unaided to identify their favorite brands/properties, eliciting a melange of entertainment, toy and food/restaurant brands. The youngest age groups were asked through their parents.) If you have a property aimed at 3-6-year-olds and looking at the Indian market, for example, you have to keep in mind that you’re not just going to be concerned with such global names as Spider-Man, Mickey Mouse and Tom & Jerry; the most mentioned property in that age group in the survey in April was the locally-produced Chhota Bheem. (It also scored highest among 7-9-year-olds.) Looking at marketing a children’s property in Sweden? Make sure that you take Bamse into account; it scored the highest recall for kids through age nine. For kids through age six, the classic Pippi Longstocking also scores within the top five most recalled characters and brands. • For more information on the Kidz Global study, available free to all LIMA members, visit the LIMA website at www.licensing.org. LEGAL The Growing Importance of Morals Clauses By: Jed Ferdinand, Ferdinand IP, LLC and 24 IP Law Group We are living in the era of celebrities behaving badly. Whether it’s entertainers, athletes or “celebutantes” engaging in acts of violence, sex or drugs, the news cycle is filled with seemingly endless stories of celebrities gone wild. The potential for criminal conduct or indecent behavior is an important issue for any licensing program based on a celebrity or other prominent individual licensor-brand owner. In the past, “morals clauses” calling for the termination of the license for certain defined behavior were rarely a concern. But times have changed, and now, with the advent of TMZ.com and 24-hour cable news, celebrity behavior is publicized like never before. Why are morals clauses so important? Because an entire licensing and merchandising program can be tarnished or perhaps even irreparably damaged from a celebrity’s inappropriate conduct, which could end up costing the manufacturer millions of dollars. As a result, every celebrity license, endorsement or sponsorship agreement should have a morals clause. The questions become: what conduct is considered a morals violation, what is the penalty and when should the licensee terminate? There are many ways to structure the morals clause. The first is the most manufacturer-friendly provision: CONTINUED ON PAGE 3 WWW.LICENSING.ORG OCTOBER 6, 2014 INSIDELICENSING 2 LEGAL CONTINUED FROM PAGE 2 The Growing Importance of Morals Clauses “Celebrity agrees to conduct herself with due regard to public conventions and morals, and agrees that she will not do or commit any act or thing that materially degrades her in society or brings her into public hatred or contempt, or that shocks public morals or decency in her community or otherwise substantially and materially devalues the value of this license grant. Licensor’s violation of this paragraph shall constitute a material breach of this Agreement.” This is a broad provision that would seemingly cover any instance of violence, sex or drugs, whether it rises to the level of a crime or not. Hence, a celebrity exposed in a sex-tape or found to have committed an act of spousal abuse would be in breach of contract regardless of whether or he or she is charged with a crime. Moreover, the penalty for breach here could be both termination of the agreement and a claim for damages by the manufacturer against the celebrity. A middle-ground approach would be to include language similar to the clause above, but to require “a criminal indictment or legal complaint filed with a court for a felony involving moral turpitude” to declare a morals violation. This would give an added level of protection to the celebrity, while still protecting the manufacturer. Finally, the most celebrity-friendly provision would be to require a criminal conviction in order to declare a morals violation. One example of such a clause is: “In the event that Celebrity is convicted of a felony crime of moral turpitude under federal or state laws which, in the reasonable exercise of Licensee’s good faith judgment, will bring Celebrity or the Licensed Marks or the Licensed Products into public disrepute, contempt, scandal or ridicule, then Licensee shall have the right to terminate this Agreement by written notice to Celebrity. With respect to the occurrences described in the preceding sentence, notwithstanding anything to the contrary in this Agreement, Licensee’s sole remedy shall be its right to exercise its termination.” This clause is favorable to the celebrity both because it requires a conviction in order to find a morals violation and because it limits the remedy to termination of the agreement only, meaning that the manufacturer could not also pursue a claim for damages against the celebrity. Beyond the legalities, the licensee will have a difficult practical decision to make in terms of when to terminate the license for breach of the morals clause. Having invested heavily in the licensing program, this will surely prove to be a difficult decision and one driven by the overarching economic consideration of whether or not the program can be salvaged. Has the program been merely LIMA Webinar Wrap: What You Need To Know About Licensing In Mexico Mexico, with a population of 120 million people, and annual sales of licensed goods estimated at $1.8 billion, is ripe for industry growth, according to speakers on last week’s LIMA webinar, “What You Need To Know About Licensing In Mexico.” AS Javier Garza of Warner Bros. Consumer Products pointed out, the estimated retail sales of licensed goods in Mexico translates into about about two percent of relevant retail sales, compared to 4-5% in other markets. But it’s also a market that property owners need to ap- WWW.LICENSING.ORG tarnished or has it been irreparably damaged by the celebrity’s conduct? A particularly heinous crime will surely leave the licensee with no choice because retailers will likely look to return licensed products and will stop all purchases. The more difficult decisions will lie with the gray areas – should a licensee terminate because of a DUI, a sex tape or another type of immoral or indecent act? This will depend on the level of public scrutiny and the reactions of the retail buyers. In the event of termination, the licensee will want to pursue a claim against the celebrity-licensor to recoup its investment in the program and may also pursue a claim for lost profits. For this reason, it is critical that the licensee-manufacturer preserve the right to seek money damages from the celebrity-licensor in addition to its right to terminate the agreement. As with all agreements, the scope of the morals clause will depend on the parties’ negotiation. • Jed Ferdinand is the founding member of Ferdinand IP, LLC with offices in New York, California and Connecticut, and is a member of the 24 IP Law Group, with offices in Germany, France and the U.K. Jed’s practice focuses on the protection and exploitation of brands in the United States and internationally. He can be reached at: [email protected] proach with a large dose of pragmatism, given a major counterfeting and piracy problem, and a business culture built on “informality.” Or, as Dalia Benbassat of Tycoon Enterprises put it: “Formality [in licensing relationships] becomes especially challenging when you are surrounded by informality.” The webinar, conducted in cooperation with Promarca, the local Mexican licensing group, included presentations by Javier Garza of Warner Bros. Consumer Products; Eduardo Figueroa of Mattel; Maca Rotter of Televisa Consumer Products, as well as Warner Bros.’ Garza and Tycoon’s Benbassat. Market Realities In addition to a facts-and-figures look at the Mexican economic, retail and media landscapes, they offered a look at licensing business realities, including the piracy and counCONTINUED ON PAGE 8 OCTOBER 6, 2014 INSIDELICENSING 3 As 3D Printing Trickles Into Consumer Market, IP Owners Dip Their Toes In The Water CONTINUED FROM PAGE 1 and derive revenue from it. Instead, then, of licensors fighting against fan-generated 3D printing in some misguided attempt to protect other licensed product and to hold on to control, we’re all jumping in to give real licenses to the 3D printing companies, provide appropriate assets and differentiate the offering from other licensed product in the marketplace.” 3D printer suppliers including Stratasys’ MakerBot and 3D Systems are offering licensing agreements carrying royalty payments based on the number of file downloads and unit, industry executives say. But in a nascent 3D printing market where total global sales are forecast to rise from a mere $75 million this year to $1.2 billion in 2018, according to Jupiter Research, licensing agreements are being tailored to include a product’s physical and digital components. “There are a lot of considerations that need to be taken into account since it’s a physical product, but also has a digital component, so there is a little bit of a learning curve as you enter this realm,” said Jeff Chapp, senior licensing manager at Sesame Workshop, which already has a deal with makerBot. Deal Narrows In Scope With the emergence of 3D printing for licensed products, the deals being struck are initially narrow in scope as companies test out the market, industry executives said. Sesame has a licensing agreement with MakerBot for a handful of Sesame Street characters that are being sold both as downloadable files for 3D printing individually ($1.29) and as a set ($4.99). The characters also are available as finished collectibles that sell through MakerBot’s own three retail stores for $10 apiece. Five Sesame Street characters are available so far including Mr. Snuffleupagus, Guy Smiley, Two-Headed Monster, Honker and Yip-Yip. All can be printed using Makerbot’s Replicator 2 ($1,999) and Fifth Generation Replicator 2 machines ($2,899). Toymaker/licensor Uglydoll as a similar pact with MakerBot that gives consumers access initially to four dolls including Wage Hits the Beach, Babo Delivers Treats, Ice-Bat Takes Flight and Ox Sails High Seas. Custom Collectibles Some companies’ first involvement with 3D printing is coming via the customized collectibles business, in which the licensees themselves “print” versions of characters with the scanned faces of consumers, and then ship them to the customers’ homes. For example, CBS Consumer Products signed a deal to use 3D Systems’ 3DplusMe service for custom Star Trek collectibles, a selection that includes both the Star Trek characters in their original forms, and the ability to customize them (for $70 apiece) to add the user’s image. 3DPlusMe also has separate licensing pacts with Major League Baseball, videogame developer Ubisoft and Disney’s Marvel. Hasbro also partnered with Shapeways on the SuperFanArt website for 3D printing based on the toymaker’s IP, including My Little Pony, Transformers and Monopoly. Hasbro also has a shortterm deal with 3D Systems for customized collectibles ordered through a handful of Walmart stores. The arrival of 3D printing raises some issues feared by licensed brands includCONTINUED ON PAGE 5 WWW.LICENSING.ORG OCTOBER 6, 2014 How It Works: A Brief Look At 3D Printing Technology While 3D printing dates to 3D Systems’ Founder Chuck Hull’s inventing and patenting stereolithography in the mid-1980s, the consumer market only took hold in recent years as downloadable files became available. At the high end of the market, 3D printing is done using animation modeling software that divides an object into digital cross-sections, enabling a printer to build an object layer by layer. For the consumer market, Shapeways, Sculpteo and MakerBot’s Thingiverse have released downloadable pre-made designs. Once a design has been selected, it is sent to the printer with a standard file extension containing 3D polygons that are sliced into thin slivers. The 3D product is built by adding material in layers that are fused together, a process that in many cases takes two to six hours to complete, depending on the complexity of the design. In the case of 3D Systems’ Cube 3 printer, 13-14 mid-size objects can be created from a single spool of filament. The prices for filament range from $48 to $130 per spool, the latter being for a glow-in-the-dark color. The range of materials used to print 3D products includes rubber, plastics and polyurethane. Some printers have a plastic filament roll spooled at the back. The printers themselves vary widely in price. The entry-level model from 3D Systems – the Cube 3 – is priced at $999 for a device that allows for dual color operation. MakerBot’s line starts at $1,399 for the Mini printer that allows for the building of products up to 4.9 inches in height with 200-micron layer resolution and ranges up to Z18 ($6,499) that features 100 micron layer resolution and 18-inch figures. INSIDELICENSING 4 3D Printing CONTINUED FROM PAGE 4 ing counterfeiting, copyright violations and trademark infringements, said Beanstalk CEO Michael Stone. But while it represents an unchartered legal and retail distribution area for licensed goods, companies should embrace the technology, Stone says. In terms of more tightly connecting licensed goods to consumers, “this is as close as it gets.” With consumers gaining the ability to print products at home, companies with licensing businesses “had better start addressing” the issues of 3D printing “sooner rather than later so they can make money later on,” Stone said. “As these printers become more affordable” within three to five years “there will come a time when consumers can make their own products. Look what happened to the music industry with the sharing of music. That was the end of the CD business.” Yet 3D printing of products longer term raises the specter of cutting into licensed product sales through brick and mortar stores, as consumers print what they previously bought at retail, industry executives say. While sales of 3D printed products currently are a miniscule part of the licensed goods business, there’s general agreement that, longer term, suppliers will likely run into overlap with their retail business. Sesame launched 3D printed product with lesser known characters, but will add some well-known collectibles by year-end, Chapp said. Uglydoll has sought to separate its plastic printed 3D figures from those sold at retail by In addition to its own store in Soho (seen on previous page), MakerBot has pilot displays in a dozen Home Depot stores to explain the tecnology and its possibilities. materials being used. Uglydoll licensee Funko used vinyl materials in manufacturing Uglydoll characters for retail, Uglydoll Licensing Director Teresa Fazio said. “Right now there are separate channels of distribution because those consumers that might go into a retail store to buy a manufactured product might not be the same ones that have the technology in their homes” to print the products, said Chapp in noting 3D printing’s initial appeal to collectors. 3D printing cutting into retail business isn’t “a concern right now, but four to five years down the road, who knows what is going to happen.” MakerBot and 3D Systems have so far addressed many of the licensing issues that have crept up as 3D printing enters the market. But “it will be interesting to see how it changes as the prices for printers” drop and they move into the mass market, Stone said. The manufacturing of licensed products also will likely change, industry executives said. • CONTACT INFO: Beanstalk, Michael Stone, CEO 212-421-6060, michael.stone@ beanstalk.com Sesame Workshop, Jeff Chapp, Senior Licensing Mgr., 212-875-6531, [email protected] MakerBot, Tom James, VP Business Development, 347-334-6800, Thomas. [email protected] Uglydoll, Teresa Fazio, Licensing Director, 732-589-9521, teresa@ uglydoll.com NEWS SHORTS: Disney, Smartwatches, TRU/Claire’s The Disney Princess fashion doll license generated $400-$500 million in annual revenue for Mattel, accounting for 6-8 percent of the toymaker’s annual revenue, B. Riley & Co. said in a research note to clients. Hasbro last month signed an agreement with Disney to develop dolls starting in 2016 based on Disney Princess stories and characters including Cinderella, Beauty and the Beast and WWW.LICENSING.ORG Little Mermaid. Frozen also was included in the agreement. Smartwatch supplier Pebble Technology is entering the licensing business, having signed a pact with Big Tent Entertainment to bring Domo to watch faces. The watch will allow consumers to use motions to activate animations. Meanwhile, Big Tent also signed a cobranding pact with NFL Players Inc. OCTOBER 6, 2014 that will bring Domo and the names and likenesses of NFL players to plush, novelty items, bags, hats and other products. Toys R Us plans to expand the number of Claire’s in-store shops across Europe to 100 by year-end as it opens the first U.S. locations through October, a company spokeswoman said. Toys R CONTINUED ON PAGE 7 INSIDELICENSING 5 RECENT DEALS PROPERTY LICENSED BY LICENSED TO LICENSED FOR CONTACTS Biggest Loser Universal Partnerships & Licensing Garmin Fitness Devices (U.S.) Cindy Chang, Universal, 818-777-2067, cindy.chang@nbcuni. com Dinosaur Train The Jim Henson Co. Kosmos Travel Games (Eur.) Panini Verlags Magazines (Eur.) Klaus Herding Housewares (Eur.) Jim Henson Co., Richard Goldsmith, 323-802-1500, [email protected]; Panini Verlags, Gabriele El Hag, 49+ 711 94768 819,gelhag@ panini.de; Klaus Herding, Susanne Litzel, +49 2871 284 3000, [email protected] Kellogg’s Kellogg Dophes Home textiles (U.S.) Agent: The Joester Loria Group, James Slifer, 212-683-8548, [email protected]; Dophes, Joseph Aziz, 800-836-5037, [email protected] Lemmings Sony Computer Entertainment Europe Bioworld Adult and kids apparel (EMEA, Australia) Gaya Plush, bags, keychains (EMEA, Australia) Sony Computer Entertainment Europe, David Evans, +44 771 856 0433, [email protected] Paladone Mugs, refrigerator magnets (EMEA, Australia Mr. Bean Tiger Aspect Productions Cafe Press T-shirts, mugs, notepads (U.S., Canada) Tiger Aspect Productions, Katherine Senior, +44 207 434 6700, [email protected]; CafePress,Ty Simpson,. 859-393-4805, tsimpson@cafepress. com Nashville ABC Studios Opry Entertainment Stickers, magnets, shirts (U.S.) Agent: Knockout Licensing, Tamara Knepfer, 212-9475958, [email protected]; Opry Entertainment, Kim O’Dell, kim.odell@ opry.com Penguins of Madagascar Dreamworks Animation Disguise Halloween Costumes (U.S.) Dreamworks Animation, Kimberly Deziel, 818-695-5000, [email protected]; Disguise, Virginia Reneau, [email protected], 310-456-7799 WWW.LICENSING.ORG OCTOBER 6, 2014 INSIDELICENSING 6 RECENT DEALS PROPERTY LICENSED BY LICENSED TO LICENSED FOR CONTACTS PopCam Mind Candy Penguin Children’s Books Children’s Books Mind Candy, Darren Garnham, +44 207 501 1900, darran@ mindcandy.com; Penguin, Susan Bolsover, +44 20 7010 3000, susan.bolsover@ uk.penguingroup.com Strawberry Shortcake AG Properties Tactic Games Coloring and activity boos, games and puzzles (Nordic) Agent: Alicom Licensing, Roland Lindholm, +46 (0) 8702 2433, roland@alicom. com: AG Properties, Lindsay Martinez, [email protected]; Tactic Games, Markku Heljakka, +358 500 222 04, markku. [email protected] Tango Britvic Bon Bon Buddies Snack foods (UK) Agent: Ian Downes, Start Licensing, Ian@ startlicensing.co.uk, +44 0203 377 958 Bon Bon Buddies, Emily Howarth, +44 0 1495 241 600 Veggie Tales Dreamworks Animation Disguise Halloween Costumes (U.S.) Dreamworks Animation, Kimberly Deziel, 818-695-5000, [email protected]; Disguise, Virginia Reneau, [email protected], 310-456-7799 University of Oxford University of Oxford Smith & Fellows Wallcoverings Agent: Performance Brands, David Ball, +44 207 730 9606, [email protected] NEWS CONTINUED FROM PAGE 5 Us and Claire’s launched the format last year via a pilot program in Europe, and have since expanded it to Austria, WWW.LICENSING.ORG France, Germany, Spain and the UK McFarlane Toys will unveil a new brick building blocks set based on AMC Network’s The Walking Dead at Comic Con in New York this week. The blocks are available exclusively this fall at Toys R Us stores, the company says Warner Brothers opened a popup Central Perks Café for a month-long run in New York City promoting the 20th anniversary of the debut of “Friends series. The 1,800-square-foot store is OCTOBER 6, 2014 serving free coffee, supplied by promotional partner Eight O’Clock Coffee, and stocked with Friends-related products. Penguin Young Readers Group will launch the Cartoon Network imprint in summer 2015, focusing on Mad Libs, fiction novels and chapter books and activity and doodle formats. The books will be based on Cartoon Networks’ Uncle Grandpa, Steven Universe, Clarence and We Bare Bears programs, with the Powerpuff Girls due in 2016.• INSIDELICENSING 7 Calendar Shows, Conferences & Meetings New York Comic-Con 10/9 - 12 Javits Center, New York, NY www.newyorkcomiccon.com/Home/ Brand Licensing India 10/11 - 12 Hall No. 12 Gate No. 7, Pragati Maidan, New Delhi, India www.licenseindia.com/brandlicensing-conference/ China Licensing Expo 2014 10/14 - 16 Shanghai New International Exhibition Center, Shanghai, China www.tjpa-china.org/ LIMA Seminar in Toronto: “How to Define & Reach Your Audience in a Digital Age” 10/21 Nelvana Enterprises 25 Dockside Drive, Toronto www.licensing.org/events LIMA – Digital Hollywood Evening Keynote Roundtable 10/21 Ritz Carlton Hotel, Marina del Rey, CA www.digitalhollywood.com/ Dubai International Brand Licensing Fair 10/27 - 28 The Dubai International Convention & Exhibition Centre http://licensingdubai.ae/ SEMA Show 2014 11/4 - 7 Las Vegas Convention Center, Las Vegas, NV www.semashow.com/the-sema-show Licensing Market 2014 11/11 Hotel Bayerischer Hof, Munich, Germany www.licensing.org LIMA Board of Directors Michael Brown, American Greetings Marilu Corpus, Click! Licensing Asia Ciarán Coyle, Beanstalk Paul Flett, United Talent Agency Christian Fortmann, 24IP Law Group Dell Furano, Epic Rights LLC Darran Garnham, Mind Candy Elias Hofman, Exim Licensing Tim Kilpin, Mattel Cindy Levitt, Hot Topic Inc. Sara Nemerov John Parham, Parham Santana James Slifer, LIMA Vice Chair, The Joster Loria Group Henry Stupp, Cherokee Group Inc. Rick Van Brimmer, LIMA Chairman, The Ohio State U. Peter Yoder, Cartoon Network Enterprises LIMA East Coast Representatives Howard Fleischer, RoyaltyPros Licensing Joan Grasso, Entertainment One Marisa Marionakis, Cartoon Network Enterprises James Stocker, FAB/Starpoint LIMA West Coast Representatives Denise Carranza, Jerry Leigh of California Stephanie Gonzalez, Mighty Fine Pamela Harris, Firefly Brand Management Kathryn Klingler, Creata USA Mexico CONTINUED FROM PAGE 3 terfeiting issue. It’s estimated that 60% of the Mexican economy is of the “informal” nature where piracy is rife, and that nearly a third of the Mexican workforce is involved. Eight-Eight percent of consumers are said to take part in that “informal” economy. But the speakers offered some guidelines for operating effectively in Mexico, and grabbing a portion of a growing market: • Strike a balance between control and being able to adapt to a new and changing market. • Safeguarding brand integrity must be balanced with adapting the approval process to meet the needs of the market. • Create practical agreements and help licensees combat counterfeit suppliers by ensuring there are consequences for any breach of the pacts. WWW.LICENSING.ORG • Protect brands through enforcement of trademarks and copyrights. • Empower licensing agents or representatives to handle legal, financial and creative services. Alert your licensing network, hire a local law firm and be ready to take action. • Act more severely against companies that are infringing trademarks and copyrights than you do in enforcing each contractual provision with your own licensees. Discouraging companies with infringing products helps build licensees’ credibility. • Acknowledge cultural differences and streamline the licensing process to provide answers more quickly and allow for shortcuts. LIMA members can access the complete audio and visual content of the webinar for free on the LIMA website, www.licensing.org. All LIMA webinars are archived on the site. • OCTOBER 6, 2014 LIMA General Counsel Gregory J. Battersby, The Battersby Law Group LLP LIMA Staff Charles Riotto, President Adam Berg, SVP, Membership & New Business Development Martin Brochstein, SVP, Industry Relations & Information Louise Q. Caron, SVP, Member Relations Mary Verdegaal, Director of Operations Christina Jordan, Director of Marketing Leah Hunter, Director of Finance & Administration Mark Seavy, Publications Editor Courtney Halligan, Mktg & Project Coordinator Tony Bugg, Managing Director, LIMA Australia Tani Wong, Managing Director, LIMA China Heike Winner, Managing Director, LIMA Germany Kaori Taniguchi, General Manager, LIMA Japan Kelvyn Gardner, Managing Director, LIMA UK International Licensing Industry Merchants Association 350 Fifth Avenue, Suite 4019 New York, NY 10118 212.244.1944 www.licensing.org INSIDELICENSING 8
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