AGENDA

• INTRODUCTION

• LEGAL

• CONTRACTUAL

• BUSINESS CONSIDERATIONS

• CULTURAL

• BREXIT

• TARIFFS

Source: Basics of Licensing International Edition

LICENSING A LARGE AND GROWING MARKET

Global Retail Sales of Licensed Merchandise, By Region,

2017 = $271B + 3% vs 2016

$157,662$53,233

$26,049

$9,349

$9,531

$10,716

$4,790 $308

US/Canada (58%)

Western Europe (20%)

N Asia (10%)

LATAM (4%)

Eastern Europe (3%)

SEA/PAC(3%)

ME/Africa (2%)

ROW(.1%)

(in millions US$) Chart C

LEGAL

• IP PROTECTION AND REGISTRATION

• IP MONITORING & ENFORCEMENT

IP PROTECTION/REGISTRATION

• TRADEMARK

• A trademark protects words, names, symbols, sounds or colors that distinguish goods and services from those manufactured or sold by others and to indicate the source of the goods

• COPYRIGHT

• Copyright protects original works created in a fixed form including literary, dramatic, musical, artistic, and certain other intellectual works. For example, a business can copyright its books, reports, audio or video materials.

Source: United states patent & copyrights offices websites

Fishwives Club Boutique Winery

IP PROTECTION/REGISTRATION

• Plan protection strategy

• Hire good legal support

• Common law vs civil law territories

• International Registration – the Madrid system.

IP PROTECTION/REGISTRATION

• THE MADRID SYSTEMCreates a centralized system for the filing, registration and maintenance of trade marks in multiple jurisdictions

• COMMUNITY TRADE MARK – EUSingle trademark registration enforceable throughout the EU

• NICE CLASSIFICATION SYTEMEstablished a common classification system of goods and services

IP ENFORCEMENT AND MONITORING

• In/house Counsel/outside IP firms

• Licensees

• Investigators/Law Enforcement/Customs

• The internet

• Trademark and Domain Name Watch Services

Designer Shoe Collaboration For Cinderella

Fashion Collaboration for Alice Through the Looking Glass

Thomas Wylde Fashion Show

Designer Collaborations with:

Robert Clergery

James Banks

Patricia Underwood

CONTRACTUAL

• Choice of jurisdiction

• Provisions to ensure that standards of quality control in place to protect IP.

• Work for hire

• Moral rights

• Choice of currency

BUSINESS CONSIDERATIONS

• Tax implications

• Pricing

• Markets & Retail

• Route to Market

TAX IMPLICATIONS

• Witholding taxes

• Double taxation treaties

• Gross up clauses

PRICING

• Familiarize yourself with commercial practices

• Discounts and other deductions

• EU – price discrimination

• Competition Law

MARKETS & RETAIL

• Retail concentration

• Specialty vs Mass Market

• E-commerce

• Consumer preferences

EU -GERMANY• Consumer demand driven by educational values

• Action properties see lower demand

• Sucessful Homegrown properties

• Fragmented retail

Source: Basics of Licensing International Edition

EU - UK• Mature licensing market

• Similar consumer tastes to US

• Strong home grown properties

• Dominant mass market

• Strong e-commerce platforms

Source: Basics of Licensing International Edition

EU - FRANCE• Open to new licenses, US , Japan

• Strong local properties

• Strong mass market

Source: Basics of Licensing International Edition

EU - NORDICS• Consumer taste for non-violent properties

• Strong

• Tech sector strong, creative

• Growing local e-commerce platforms

Source: Basics of Licensing International Edition

EU - ITALY• Consumer follows licensing trends in most other

markets

• Strong mass account

• Ongoing economic malaise

Source: Basics of Licensing International Edition

EU - SPAIN• Highly concentrated retail market

• Consumers embrace global IP

• Slow to emerge from recession

Source: Basics of Licensing International Edition

LATIN AMERICA • Licensed character have strong consumer appeal

• Varied retail landscape

• Growing population

• Economic expansion

Source: Basics of Licensing International Edition

CHINA• Media distribution

• Strong presence of International IP

• Growing local content

• Retail still fragmented

• Anti – Counterfeit measures

Source: Basics of Licensing International Edition

ROUTE TO MARKET

• Local Office

• Chosing an Agent

• Chosing a Licensee

• Creative Asset requirements

BREXIT

TARIFFS

If want to learn more a great

resource is the Basics of licensing

international edition

TED LARKINSAUTHOR, EXECUTIVE COACH, LICENSING CONSULTANT @ GET TO LLC

JIGGY GEORGEFounder - Dream Theatre Group, Head of India chapter of Licensing International

L I C E N S I N G 1 0 1

I N D I A A N D

S O U T H A S I A

Overview

India and South East Asia represent one of the most vibrant and fast growth licensing markets in the world. India with

its growth statistics and young economy is one of the three emerging markets alongwith China and Brazil

Despite its geographical proximity, the region is diverse as no other in terms culture, language, religion and retail

development.

While in South East Asia retail is far more developed, India’s organized retail is still just 10% of the market.

Television rules the roost for entertainment/ kids animation properties and a strong presence on TV is a must for kids

entertainment and character licensing business to make it big.

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There is a massive digital revolution underway in the region. India has 468 million smart phones in 2017, which will

grow to 859 million by 2022. South East Asia has equally high numbers in smart phones as well as internet

penetration.

E-commerce is on an upswing. This is specially significant in India where it can service consumers not served by

traditional retail and reach fans wherever they are.

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Key Genres :

EntertainmentTV is the largest subset in the entertainment business and character licensing is massive, driven by all sizes of screens! For a enetrtainment/ character property to work, it must be a established and highly popular.

FashionIndia is set to touch 102 Billion USD by 2022, offering massive head room for fashion licensing to make its presence felt. Similarly Fashion is big business in markets like Thailand, Singapore and other South East Asian markets.

Brand

Sports Sports is a growing proposition across the region. Cricket is big in India, but soccer licensing business is gaining ground. Soccer is massive in Thailand, Malaysia and Singapore. Philippines is high on Basketball.

High awareness of international brands coupled with high propensity to spend on big brands makes Brand Licensing a heavyweigth genre.

Celebrity Bollywood is supreme and Indian superstars rule the roost and similarly regional superstars have fan following in there home countries.

What you need to know!

A property must be built, invested in to have resonance before its licensed. Design programmes, Art licensing, Fashion

Licensing must have regional relevance and resonance.

Entertainment properties must have a strong presence on TV. A well managed , regional TV strategy versus a global

footprint is a corner stone of building the business.

With growth in smart phones and internet penetration, viewership patterns are changing. Digital properties are on

the rise. And niches in the markets are very big.

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Organized retail is growing and private labels are gaining ground. Direct to Retail, both Online and Offline are good

launch pads, but must be coupled with a strong mass distribution strategy to have a dual approach of class and mass

strategy.

Global + Local approach works best. Global partners will bring speed to market with international product lline and

will build aspiration. Local partners will have strong distribution network and the right pricing strategy to go deep.

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What is the best approach

Same strategy will not deliver across markets and must be made locally relevant. In depth market research is a must

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FMCG, White Goods, Customised solutions x Licensing are sunrise industries with headroom to grow, but brand

asprations are different within the region.

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Counterfeit and piracy is a challenge in the region and needs to have a solid strategy. IP registrations is a must for

protecting IP and IP owners must engage local legal counsel or empower agents to take legal action to curb piracy.

Scout for Long Term partners who have the following tick marks:

▪ Agents: Market knowledge, long standing relationships with retailers, experience in managing brands and launching

products, long standing relationships with key retail, licensees & broadcast partners

▪ Licensees: Ability to create and produce, strong distribution network and marketing wherewithal

Market Notes

Deals take a long time to fructify and need involved local teams in place to constantly be in touch and follow up

across stages.

Localised marketing communication leads to delta in sales.

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As diverse the markets are, there are a few common threads.

Properties emanating in the region may or may not travel seamlessly within the region or internationally.

Dig in your heels for the long term play, get your product and pricing strategy right, invest in the market and you will

not be disappointed.

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Indians and Thai find it very difficult to say no. In the absence of a decision, its best to fix a timeline and move to the

next player.

THANKYOU

www.dreamtheatre.co

© DTPL