Licensing
SPORTS AND ENTERTAINMENT MARKETING
What is licensing?
 A legal agreement that
allows a company the
right to use another’s
brand name, patent, or
other intellectual
property for a royalty fee
Why is Licensing Important
 Licensing generates
income for sports
organizations and
entertainment events
 Offers companies
additional access to their
target markets
Licensing is NOT:
 Branding:
 Branded items do not use another company’s trademark
 Sponsorship:
 When a company pays to affiliate itself with a team or event
 Endorsement:
 A company pays an athlete or team to promote its products by
wearing or using them
Licensors
 Licensor: the company
that holds the rights to
trademarked property
 Examples:

The NFL

Virginia Tech

Pittsburgh Penguins
Licensors
 Types of SEM Licensors:

Sports Leagues

Individual Teams

Individual Athletes

Entertainment Companies

Individual Entertainers
Licensees
 Licensees: The company
that wants to
manufacture and sell
products using
trademarked property
 Examples:

Clothing (Reebok, Nike)

Video Games (EA Sports, 2K)
Who is the Licensor? Licensee?
 Licensor: Minnesota
Twins
 Licensee: Watch
Manufacturer
Who is the Licensor? Licensee?
 Licensor: NBA
Kobe Bryant
 Licensee: 2K Sports
Who is the Licensor? Licensee?
 Licensor: Kentucky
Wildcats
 Licensee: Nike
 Nike is licensed (given
permission to sell”)
items containing the
Kentucky logo.
Licensed Products
 Example
 ANYTHING can be
licensed

Key chains, banners,
furniture, jewelry
 Clothing = 60% of all
licensed sport
merchandise sales

T-Shirts are the most
popular item of all
How Do Licensors Get Paid?
 Guarantees:

The fee a licensee pays up
front to use the trademarked
property

Based on Expected Sales
 Royalties

Percentage of the actual
sales
Licensor

Advantages
Disadvantages
Increased profits with

marketing process
little extra work

Low Risk

Free advertising

Build brand awareness
Loss of control over

Inability to:
 guarantee
quality
 control
prices
 control
where
merchandise is sold
Protecting Property
 Trademark
 Without
a trademark,
anyone could use your
logo and profit from it
 With
a trademark,
they are charged to
use your logo
Protecting Property
 Trade Dress

Refers to visual
characteristics of a
product or its packaging

Includes

Color schemes

Textures

Design, shape and
placement of words,
graphics and decoration
Trademark Infringement
 The
reproduction,
copying, or
counterfeiting of a
registered mark
 There
is up to $1 Billion
worth of counterfeit
products each year
Review
1.
What is licensing? Who is the
licensor? The licensee?
Answer on
your own
paper in
2. How do licensors get paid?
COMPLETE
SENTENCES!
disadvantages of being a
Once done, go
over answers
in class
3. What are the advantages and
licensors?
4. Why is trading marking
products and ideas important?