licensing information and ideas to better your
Transcription
licensing information and ideas to better your
LICENSING INFORMATION AND IDE AS TO BE T TER YOUR BUSINESS DreamWorks Animation’s Jeffrey Katzenberg To Deliver Keynote at 2014 Licensing Expo F E B R U A R Y 2 014 WHAT’S INSIDE Auditing: Money Isn’t Everything. Really. Page 2 Retail Positioning, Social Media, Omnichannel Retailing: Breakfast Roundtable Sessions To Be Staged in NYC Page 2 Licensing Careers: Dan Amos, Tinderbox Page 6 Entertainment and media visionary Jeffrey Katzenberg, chief executive officer of DreamWorks Animation, will deliver the Opening Keynote address at Licensing Expo 2014. The Opening Keynote session of the Expo, sponsored by LIMA and staged by Advanstar, will take place Tuesday, June 17, from 8-9 a.m. at the Mandalay Bay Convention Center in Las Vegas, and is free for all Expo attendees and exhibitors. “Licensing Expo’s keynote address is a rallying point for the licensing industry and sets the tone for the overall event,” said Charles Riotto, President of LIMA, the exclusive show sponsor. “As the leader of one of the most successful and trend-setting entertainment companies and licensors in the world, Jeffrey Katzenberg will provide attendees with his valuable insights into the future of the media and entertainment industries and the licensing business that is sure to resonate with all those in attendance, during the upcoming show and beyond.” Chris DeMoulin, President of Licensing & EVP of Customer Development for Advanstar, commented, “We are honored to welcome industry icon Jeffrey Katzenberg to address our Licensing Expo audience. I can’t imagine a better way to kick off this year’s show.” Please turn to page 3 Upcoming Trade Events Page 7 Welcome New Members Page 8 www.licensing.org Auditing Money Isn’t Everything. Really. By Anthony Shaut Director of Royalty Audits Spielman Koenigsberg & Parker, LLP While one of our goals, as auditors, is always to ensure that net sales are accurately reported and royalties are paid in full, it is certainly not our only goal. Typically, at the point where a licensor engages us to conduct an audit, the intellectual property is already well established. It is our job, then, to make sure that brand image is maintained and protected by ensuring compliance with all of the terms of the license agreement. An effective audit process encompasses far more than counting beans. Counterfeits and knockoffs Of the many problems that licensors and licensees face, counterfeit and knock-off merchandise is always near the top of the list. A consumer finds a product normally priced at $29.99 in stores for $14.99 on a rogue website. That consumer purchases the product and, after only weeks of wearing it or playing with it, wants to know why the brim of the hat is already fraying, why the action figures’ arm just fell off, or why the color of the shirt has begun to fade after only two washes. The answer – it’s a fake and, therefore, doesn’t live up to the quality control standards that the brand has established. It’s to address situations like this that holographic security labels are created and adhered to all authentic licensed products, and it’s why we, as auditors, place such an emphasis on hologram testing, among other procedures. Whether it be doing a walkthrough of the process by which holograms are adhered to each licensed product that gets shipped, viewing ready-for-sale products in the warehouse to ensure that all of them “An effective audit process encompasses far more than counting beans. ” Please turn to page 4 March 7 in New York Breakfast Roundtable Event To Focus On Social Media, OmniChannel Commerce & Retail Positioning Join LIMA at Morton’s Steakhouse in New York on Friday, March 7th, for a limitedseating breakfast event covering some of the hottest topics in the licensing industry. The breakfast will take place from 8:00-10:30 a.m., with ample opportunity to network! The small-group roundtable discussion format will let attendees interact with industry experts on three separate subjects: • What Retailers Are Looking For and How You Can Position Yourself Accordingly – Michael Goldstein, Former Chairman of the Board of Toys “R” Us; currently serving on the board of Pacific Sunwear • Social Media and Digital Marketing: How to Use It and How It Can Translate to Actual Product Sales – Debbie Bookstaber, President of Element Associates, a leading Please turn to page 5 2 www.licensing.org Katzenberg C O N T I NUED FROM PAGE 1 In 1994, along with Steven Spielberg and David Geffen, Katzenberg co-founded DreamWorks SKG, which produced a number of celebrated films, including three Best Picture Academy Award® winners – American Beauty, Gladiator and A Beautiful Mind. In 2004, DreamWorks Animation became a publicly-traded company with Katzenberg at the helm. Under Katzenberg’s leadership, DreamWorks Animation has become the largest animation studio in the world and has released 27 animated feature films, which have enjoyed both critical and commercial successes, earning nine Academy Award® nominations and two wins for Best Animated Feature. In addition to critical success, DreamWorks Animation has been recognized as one of the “100 Best Companies to Work For” by FORTUNE® Magazine for five consecutive years. In 2013, DreamWorks Animation ranked #12 on the list. Prior to co-founding DreamWorks, Katzenberg served as Chairman of The Walt Disney Studios. During his tenure, the studio produced such landmark animated films as Who Framed Roger Rabbit, The Little Mermaid, Aladdin, The Lion King and Beauty and the Beast – the first animated film to be nominated for a Best Picture Oscar® – as well as live action hits, including Good Morning, Vietnam; Three Men and a Baby; Dead Poets Society; Pretty Woman; Father of the Bride and Sister Act. Katzenberg previously served as President of Paramount Studios, where he was involved in now-classic films including Raiders of the Lost Ark, Saturday Night Fever, Grease and Best Picture Academy Award® winners Ordinary People and Terms of Endearment. In 2013, Katzenberg was awarded the prestigious Jean Hersholt Humanitarian Award by the Academy of Motion Picture Arts and Sciences for his outstanding contributions to humanitarian causes. With his wife Marilyn, Katzenberg supports and leads fundraising efforts for a wide range of national and international organizations focused on supporting healthcare, education, the arts, Jewish causes, children, civic improvement, and the environment. Among his philanthropic endeavors, Katzenberg is Chairman of the Board for the Motion Picture & Television Fund Foundation and Director of Zynga Inc. He sits on the Board or serves as a Trustee for AIDS Project Los Angeles, American Museum of the Moving Image, California Institute of the Arts, Cedars-Sinai Medical Center, Geffen Playhouse, Michael J. Fox Foundation for Parkinson’s Research, University of Southern California School of Cinematic Arts, and The Simon Wiesenthal Center. Katzenberg also supports the Elton John AIDS Foundation and Boston University, and with DreamWorks Animation, he founded the DreamWorks Animation Academy of Inner-City Arts in 2008. “Jeffrey Katzenberg will provide attendees with his valuable insights into the future of the media and entertainment industries and the licensing business that is sure to resonate, during the upcoming show and beyond.” --Charles Riotto, LIMA Sign Your People Up For The LIMA Young Professionals Network Register your employees to participate in LIMA’s young professionals group! We host networking and educational events throughout the year in New York, Los Angeles and London targeted toward those starting out in the licensing industry. Come to the next New York event, a Happy Hour Networking get-together on Wed., March 26, 6pm - 8pm, at Suite 36 in Midtown Manhattan. For more information or to sign up, contact Courtney Halligan at challigan@licensing.org. 3 www.licensing.org Auditing C O N T I N U E D FROM PAGE 2 contain a hologram, or comparing hologram inventory records to sales records, these anti-counterfeiting measures will only be effective if the licensee abides by them. It should be an auditors job to help ensure that they do. In addition to preventing cheap imitation products from flooding the market, preventing low-quality authentic products from entering the market can also be a concern. Although most licensors require a thorough approval process with samples and prototypes submitted for review prior to being produced, there is still a reliance on the licensees’ factories to manufacture product for the mass market of the same quality as the samples. Detecting unauthorized factories The heavy reliance on factories is traditionally conveyed in third-party manufacturing agreements that are required by the license agreement. Again, it is our job as auditors to ensure that no unauthorized factories are used to manufacture product. Processes such as reconciling inventory movements, reviewing purchase orders, and comparing those purchase orders to authorized factories are just a few of the tests that we conduct to help identify and prevent the use of unauthorized factories. Once a level of comfort has been gained regarding both the authenticity and quality of products going out the door, the next goal is to ensure that these products are distributed in the manner that they were intended and within the territory they were intended. After all, spending all that manpower en- suring a quality product is delivered to the market won’t do much good if, for example, that product is being dumped at close-out and off-price retailers or to territories not included in the license agreement. A thorough review of customer lists and sales invoices as well as research into unfamiliar customers goes a long way in preventing excess off-price sales, identifying sales to distributors that may be made at lower price points, and locating sales made outside the licensed territory that may breach rights granted to other licensees. This article only touches upon the tip of the iceberg for compliance issues and brand protection that an audit can provide. Even within the topics discussed above, there are a number of other methods that auditors can use to help prevent counterfeiting, to ensure the utmost quality of authentic products are released into the market, and to enforce the distribution and territory restrictions upon which a license agreement is based. Not to mention product labeling, insurance requirements, advertising minimums, etc., all important clauses of a license agreement that have been added in there for a reason. Just remember that without the full scope of an audit to ensure the completeness of information that is provided by a licensee, a brand manager can never be sure that the full picture is being presented to them. And even though it’s often perceived that an audit is only about net sales and royalties, a good auditor can paint that full picture for you. “Licensors sometimes think licensees are lucky to make anything off their brands. But partners value and reward each other for mutual investments. Starbucks might have saved itself a billion dollars if it had done so in this case.” Do Something Nice For Everyone On Your Team Shouldn’t they be up-to-date on news and perspectives on licensing, marketing and retail? Sign them up for LIMA’s NewsLinks service, delivered FREE to everyone’s mailbox every Tuesday and Thursday. Just send a list of everyone’s email address to newslinks@licensing.org, so they can start to get LIMA NewsLinks. 4 www.licensing.org Roundtable Breakfast CONTINUED FROM PAGE 2 agency developing online marketing campaigns combining social media, affiliate marketing, PR, SEO, paid search, digital media buying, and blogger outreach. • The Keys to Building a Successful Multi-Channel Commerce Experience For Your Brand – Craig Walsey, Vice President, Business Development at Delivery Agent, a market leader in ecommerce and multichannel commerce. Michael Goldstein Michael Goldstein, former Chairman of the Board of Toys “R” Us Inc., was involved with Toys “R” Us for over 20 years serving as Chief Executive Officer from 1994 to 1997. Prior to 1983, he was Senior Executive Vice President-Operations and Finance of Lerner Stores Corporation. Preceding that, he was a Partner of Ernst & Young in New York.A magna cum laude graduate of Queens College with a B.S. in Economics, Mr. Goldstein was the recipient of the Haskins Gold Medal for achieving the highest score in the CPA examination in the State of New York. He is on the Board of Pacific Sunwear. He was formerly the lead director on the Board of Medco Health Solutions (NYSE) and Chairman of the Board of Charming Shoppes, both companies sold in 2012. He is Non-Executive Chairman of the Board of the Israel Discount Bank of New York and is on the boards of two other nonpublic companies : Med Express (majority owned by General Atlantic) and Ri Happy (a Brazilian toy retailer majority owned by Carlyle). He is on the Advisory Board of Jefferies, Inc. and Proximiant. Debbie Bookstaber Debbie Bookstaber is President of Element Associates, where she leads integrated online marketing campaigns, combining social media, affiliate marketing, PR, SEO, paid search, digital media buying, and blogger outreach to meet client objectives. Debbie has over a dozen years of market- 5 ing experience at brands such as Expedia and Travelocity. She has managed online marketing programs responsible for several hundred million dollars in annual sales. Debbie has advised PR firms, Fortune 500 companies, nonprofits and government agencies on blogger relations and effective social media strategies. As the blogger behind Mamanista.com and Bloganthropy.org, Debbie was recognized as one of the “Top 25 Parent Bloggers Who Are Changing the World” by Babble. com in 2012 and as a “Best of the Net” Blogger by Working Mother Magazine in 2013. She graduated Magna Cum Laude and Phi Beta Kappa from Yale University with a BA/MA in History. Follow her on Twitter @buzzmommy. Craig Walsey Craig Walsey is a business development executive with 20 years of experience in the technology, retail, and entertainment industries. He is currently the Vice President of Business Development for Delivery Agent, overseeing their ecommerce, advanced television and licensing initiatives. Delivery Agent is the market leader in turning TV viewers into revenue generating customers for the world’s largest brands and media companies. Their clients include televisions networks, entertainment properties and sports franchises including NBC, CBS, FOX, HBO, Showtime, Bravo, Discovery,The Brooklyn Nets, Boston Celtics, U.S Open, Playboy and Pepsi. Prior to joining Delivery Agent, Craig held senior business development positions with 8thBridge, Payvment (sold to Intuit), TBG Digital and Dogster.com (Sold to Say Media). Craig began his career as a merchandising and licensing attorney, with stints at Viacom and Paramount Pictures and was General Counsel for the fashion retailer bebe stores (NASDAQ: bebe). Cost to attend is $75 for LIMA members, $150 for non-members. Space is extremely limited – register online today! Two Editions of “Basics of Licensing” Available Two editions of the LIMA-endorsed “Basics of Licensing” book series are now available: • Licensor Edition • Licensee Edition These are the definitive reference guides for everyone involved in the licensing industry. For more information please visit www.basicsoflicensing.com. www.licensing.org Licensing Career Stories Dan Amos Head of New Media Tinderbox, division of Beanstalk Group What were the career moves that brought you to the licensing business? I’ve always known I wanted to be in the licensing business…I’m clearly kidding! Imagine meeting the one person (and I’m sure there is only one) that says that. Like everyone in our industry I started out on a completely different trajectory, oblivious to the licensing world. I trained to be an illustrator, specifically comics/graphic novels and I’m fortunate to remain close friends with some of the most talented artists I’ve ever met. Seeing their work also reminds me that I absolutely couldn’t compete with them! It was during my university years studying illustration that I began working for a small UK based company that produced collectible framed products, a number of which were under license. Being into comics, I gravitated to the Marvel licenses they held, slowly integrating into product design. This meant I eventually became the style guide guy, learning the brands we licensed inside out and developing products for approval. This was my first taste of licensing and led to creating roles that allowed me to acquire licenses on behalf of the company and attend Brand License Europe. Working with licensing agencies in the role I had carved out for myself made me consider making the jump from licensee to licensor. I was eager to experience the other side of the discussions I was having. My search led me to Beanstalk, global licensing agency; their portfolio of clients was (and still is!) significant including Jack Daniels, Land Rover and Stanley Black & Decker. Starting out in the world of toys and collectibles for automotive clients was a departure from product design and my love of comics but it was the kick start to my career in licensing that I was looking for. Throughout my seven years at Beanstalk, I’ve had the opportunity to develop and lead varied and innovative licensing programs; writing this has made me realize just how much I’ve worked on, an incredible ride! Today I’m head up Tinderbox, a division within Beanstalk dedicated to digital entertainment properties, New Media. I’m passionate about the current disruption of the entertainment space by New Media; there is a clear evolution of entertainment and with Tinderbox I aim to be at the forefront. What’s a “typical” day in your current position? My days are becoming less and less typical; this is what I love about agency life and about building something like Tinderbox. I enjoy taking an active role in all areas of our business and whilst I head the division, I make a point of working alongside all members of the team in sales, management, finance and legal. However the area I have a passion for and take a very active role in is the sourcing of new and exciting properties for our agency. This means scouring the AppStore counts as work! I find that social media is becoming an incredibly valuable tool in identifying opportunities at the earliest point; My morning commute is put to good use checking in with all of the blogs I consider key before I settle in to licensee and client management. We have a great existing portfolio including titles such as Doodle Jump, MovieStarPlanet and My Singing Monsters. The extensive research the team has already put in will lead to some very exciting properties joining our existing roster shortly. Please turn to page 7 6 “To call digital or New Media brands a trend in licensing is doing it a disservice; this is an evolution of entertainment and this understanding is slowly filtering down into the licensing industry. “ www.licensing.org Licensing Career Stories CONTINUED FROM PAGE 6 UPCOMING TRADE EVENTS What’s the most challenging aspect of your job? How do you address that challenge? New Media is constantly developing, meaning you no longer simply pitch a brand but you may need to also educate your prospect on the digital entertainment space at the same time. New Media is transforming entertainment, the space has been forever disrupted, TV viewing is down and digital media consumption is up. To call digital or New Media brands a trend in licensing is doing it a disservice; this is an evolution of entertainment and this understanding is slowly filtering down into the licensing industry. I actually enjoy sharing with prospects New Media’s significance within the entertainment space, there are some incredible statistics out there reinforcing what Tinderbox believes in. One of my favorites is that in 2011, 2 percent of children under the age of two had used a mobile device – in 2013, that figure had increased to a staggering 38 percent.* When we realise how children are engaging with brands today through statistics like this you can appreciate the importance of understanding New Media. It’s a challenge to be championing something that’s early but I’d rather be at the forefront than thinking ‘if only…’ What’s your favorite part of your job? I genuinely love what I do; there’s no one thing that gets me up in the morning. But if you’re asking me to narrow it down, I can get to three. Firstly, its meeting people. The licensing industry is built on relationships and developing credible partnerships. I’m always keen to meet anyone who has even a minor interest in what I do. You never know how you will reconnect with these people in the future. The industry is a hugely positive and entrepreneurial place with so many different opportunities to make amazing things happen; the only way to do that is to connect with as many great people as you can. Secondly, seeing product in the hands of fans. Especially in the gaming space, there is a hunger from fans to own a piece of their digital world physically. It’s a special moment to see people clamoring to get their hands on something you helped envision, develop and launch. Finally, and most importantly my son thinks I’m a superhero. Because I have the opportunity to meet with the people behind some of the games he is obsessed with, to him this is the greatest thing in the world (and it is pretty awesome). He spurs me on to deliver the product he’d want for the brands he loves. It’s a pressure I’m happy to have. However he doesn’t realize he’s my secret weapon, he’s truly of the New Media generation, tablet owning and techno-savvy. He picks up brands quicker than I can seek them out, I learn a lot from him and now more than ever should we be paying attention to the brands our kids are engaging with. What are the most significant trends or changes that you’ve seen in the business in recent years? As I mentioned, we are in the midst of an entertainment evolution, the way people are consuming media is changing almost daily. Traditional media consumption is decreasing, TV is trending flat, digital media consumption is up. The digital trend that everyone was talking about 12-18 months ago has passed; digital or rather New Media is here now, disrupting entertainment. I foresee many more brands coming from the New Media space embedding into pop culture. Please turn to page 8 LIMA Webinar: Building A Compelling Brand Guide 2/26, Noon - 1:30 pm US EST http://www.licensing.org/events/view/1165/ LIMA Breakfast Roundtables 3/7, 8:00 - 10:30 a.m. Morton’s, New York, NY http://www.licensing.org/events/view/1167/ Global Pet Expo 3/12-14 Orange County Convention Center, Orlando, FL http://globalpetexpo.org/ 2014 International Home + Housewares Show 3/15-18 McCormick Place, Chicao, IL http://www.housewares.org/ 2014 Australian Toy & Hobby Fair 3/16 - 19 Melbourne Convention & Exhibition Centre, Melbourne, AU http://www.toyfair.com.au/ Bologna Licensing Trade Fair 3/24 - 26 Bologna Fairground, Hall 31, Bologna, IT http://www.bolognalicensing.com/en/home-page/923. html Day of Licensing /Tag der Lizenzen 4/2 Hotel Maritim, Colgne, Germany www.lima-verband.de *Source: Common Sense Media: Zero to Eight Children’s Media Use in America 2013 7 www.licensing.org WELCOME NEW MEMBERS Aeropostale Richard Li www.aeropostale.com Easy One Consulting Limited Douglas Yick kathy ireland Worldwide studio2pt0, llc www.kathyireland.com www.studio2pt0.com Steve Rosenblum Stan Madaloni http://easy1cons.com asknet AG Katja Speck www.asknet.com Blue Banana Group LLC Marvin Azrak www.bluebananagroup.com China Toy & Juvenile Products Association Mei Liang www.tjpa-china.org CraneKahn Al Kahn Firefly Brand Management Cynthia Modders Merchant Factors Corporation Vicki Engel Toy Factory, LLC Amy Hoffman www.thetoyfactory.biz www.merchantfactors.com www.fireflybrandmanagement.com Polaris Industries, Inc. Ulkutay & Co. Ltd. Tulin Ulkatay Shean Ferrell www.ulkatay.net www.imprintlicensing.com Sequential Brands Group Wonderful Works, Inc. & Luma Creative Studio iQ License www.sequentialbrandsgroup.com www.luma.co.za www.iqlicense.com Shandong Zhongdong Culture Media Co. Ltd. Imprint Licensing Company Leslie Buhler Albert Oh www.polaris.com Richard Platt Claire Becker Carmen Zhang www.zdcgi.com Licensing Career Stories CONTINUED FROM PAGE 7 What are the biggest challenges facing the licensing business in the next three years? Manufacturing will continue to face the challenge of keeping up with the pace at which New Media brands explode onto the market. New Media properties can develop at the speed of light; able to gather a following of millions in a fraction of the time a traditional entertainment brand takes. Therefore reacting to this almost instant demand for product is always going to be a difficult. However I think technologies like 3D printing and their application within the licensing industry is something to watch in addition to products within the on-demand space. There are so many ways in which a consumer can now purchase including social commerce, mobile commerce, even TV commerce, selecting the items on screen whilst watching your TV show. Manufacturing processes that can integrate themselves successfully into these areas will see the benefit. What advice would you give to students or young professionals wanting to pursue a career in licensing? My first big leap was going to Licensing Expo; I’d encourage anyone interested to do the same and experience it first-hand. There are excellent seminars to attend and gain valuable knowledge. But don’t just listen -- participate, ask questions. Licensing shows are also an excellent chance to network and meet people from the industry, take full advantage of it! Any advice for mid-career professionals looking to expand their competencies? I think this is a great time to develop in new areas regardless of what stage you are at in your career. New Media has leveled the playing field with newly developed brands going head to head with decades old franchises. Take in every learning you can from where you are now but keep a close eye on how the landscape is changing for the future. Trends are emerging at a frightening pace and having a clear understanding of today’s new consumer habits will put you ahead. 8 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 Susie Lecker, Fisher Price Brands Marty Malysz, Dependable Solutions, Inc. Sara Nemerov, Warner Music Group Carla Peyton, BBC Worldwide Americas Maura Regan, LIMA Chairperson, Sesame Workshop Jennifer Richmond, Richmond Management Group James Slifer, The Joester Loria Group Cheryl Stoebenau, CAS Marketing Rick Van Brimmer, LIMA Vice Chair,The Ohio State U. Peter Yoder, Cartoon Network Enterprises LIMA East Coast Representatives Meredith Ashley, Hearst Brand Development Joan Grasso, Entertainment One Marisa Marionakis, Cartoon Network Enterprises James Stocker, FAB/Starpoint LIMA West Coast Representatives Leslie Buhler, consultant Jennifer Cooper, 20th Century Fox Consumer Products Pamela Harris, consultant Marc Mostman, MOST Management 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 Courtney Halligan, Project Coordinator Heike Winner, Managing Director, LIMA Germany Kaori Taniguchi, General Manager, LIMA Japan Tani Wong, Managing Director, LIMA China Kelvyn Gardner, Managing Director, LIMA UK www.licensing.org