1. 1.06-B: Licensing

2. OBJECTIVES
Obj. A - Explain the purpose of licensing in sport/event marketing.
Obj. B Explain the benefits and risks of licensing.

3. ESSENTIAL QUESTIONS
What are the purposes of licensing in sport/event marketing industries?
How do sport and entertainment marketers benefit from licensing their trade mark properties?
What risks do sport and entertainment marketers take in licensing their trade mark properties?

4. Explain the purpose of licensing in sport/event marketing.
OBJECTIVE - A
Explain the purpose of licensing in sport/event marketing.

5. Licensing
A legal agreement that allows one company to use the trademarked property of another company to manufacture and sell its own products.

6. Trademarked Property
Trademarked property: A symbol, design, or word used to identify a good or service and registered with the government
to prevent use by others
Trademarked Property is the basis
for the licensing process

7. Trademarked Properties Include:
NAMES – Tony the Tiger
LOGOS
SLOGANS -A phrase that is easy to remember
Example: Just do It! or Theeeere Great!
GRAPHICS
If you don’t get the copyright, you can’t make
money from licensing.

8. Branding
Licensing isn’t branding.
Branded items only use the logo of the manufacturer not other company’s trademarks.

9. Branding
Nike is a brand
Example: NIKE SWEATSHIRT

10. SPONSORSHIP A company pays a fee to a team or an event
for the right to affiliate or (ATTACH) itself
with that team or event.
T-Mobile Sponsor NBA
Sears Sponsor WNBA
Diet Coke Sponsors Taylor Swift
Coke Sponsors a the COKE 600 Race

11. Endorsement
A company pays an athlete or team to promote its products by wearing or using them and by appearing in the company’s advertisements.

12. Endorsement
EXAMPLE:
HANES pays a fee to Michael Jordan to appear in its television commercials.

13. Warm-up Which of the following is an example of branded merchandise:
a. Tiger Woods golf towel
b. NCAA Nokia Sugar Bowl
c. Allen Iverson jersey
d. Nike sweatshirt

14. LICENSEE VS. LICENSOR

15. Licensor
An organization or company that owns the trademarked property. Example: New York Yankees

16. Licensee
A company that wants to manufacture and sell products using trademarked property is known as a licensee.

17. Licensees

18. Best licensed Products
T-shirts are the best-selling licensed clothing items

19. Warm-up Which of the following is a licensee: a. Monday Night Football
b. The Masters Tournament
c. Wrigley Field
d. Nintendo

20. Obj. B Explain the benefits and risks of licensing.

21. A. Profits Why be a licensor? 1. Licensing brings in enormous income.
2. Even events that take place just once a year can capitalize through licensing.
3. Example: Wimbledon makes almost $100 million annually in licensing revenue.

22. Collegiate Licensed Products
College athletic departments use their licensing income to build up scholarship funds.

23. LICENSEE FEES
The fee a licensee pays up front to use trademarked property is called a guarantee.

24. ROYALTIES
A percentage of actual sales profits

25. International
licensors in the international marketplace because sports are universally appealing