Obtain endorsements for sports/events • Endorsement is an action made by a celebrity or well-known person as follows: Testimonial (statement or advertisement), by a user of the product proclaiming the product’s benefits Appearance (association), is an action whereby the endorser appears at an event. The celebrity does not have to do or say anything but consumers believe they like the product • Nothing sells a product/event like a celebrity endorsement • Athletes and celebrities appeal to all advertising demographics • Especially to the key younger demographics. • INCREASE your event’s brand image, awareness, equity and loyalty Must be positive, charismatic, trustworthy Must be someone consumers know Must be Directly linked to the company’s image Someone who presents few risks Develop a licensing program • Trademark is a word, phrase, symbol, logo or design that identifies and distinguishes the company from others. A trademark has legal protection through the United States Patent and Trademark Office Any entity wishing to protect their trademarks must register the trademark and post the designated symbol next to the item they wish to protect It is these trademarks that licensees wish to use • Service Mark is a word, name, symbol, or device used to identify and distinguish a company’s services, including a unique service, from those of another service provider. Signifies services rather than goods Professional sports organizations are considered Service Marks because of the entertainment value of sports. • Trade Dress is a a particular type of trademark that protects the distinctiveness of the appearance and image of a good or service Protects a product’s packaging Protects distinctive décor and atmosphere • Collective Mark a trademark or service mark used by members of a cooperative, association, or other group or organization. • Mark is a shorthand reference to any type of mark, including trademarks, service marks, and collective marks • Registered Mark is registered in the United States Patent and Trademark Office © TM ® SM A trademark search of conflicting/similar marks be should be done by sports organizations before registering. Trademarked Property are owned by the entity (licensor) that registers them and no other entity may use them or the likeness without permission from the licensor. Licensing • Licensing • is the permission to copy the name, logo, or trademark of a league, athlete, sports team, entertainer, film, television show, or character for a fee, also called a royalty “Logo cops” Addresses trademark protection and enforcement concerns for all the major sport leagues and college athletic departments License agreement is a contractual agreement by which a sports team or organization gives a company a license to use its name, logo or trademark on the company’s products Basic components of license agreements License grant Specifies which rights and properties are being licensed Specifies what types of merchandise will be produced Describes the exclusivity of the category Term Specifies the begin and end dates of the contract Describes the processes for contract renewal Compensation Contains all details regarding payments Ways licensor is paid: Guarantee—up-front fee based on expected sales Royalties—5 to 15 percent of profits after the guarantee Includes a detailed payment schedule https://www.youtube.com/w atch?v=4unDXE9K4QE https://www.youtube.com/wat ch?v=v79Rw5RglZI An exclusive category is one in which only one licensee can manufacture merchandise. Nike—only business authorized to produce uniforms for the NFL A nonexclusive category is one in which more than one licensee can manufacture merchandise. Trading cards A licensing program should determine whether it is more cost-effective to administer the program internally with university employees, or externally by contracting with an outside agent.