Thursday, March 31, 2005

typical?

Typical virgin licensor behaviour is to welcome an approach from a brand licensing agency. It's flattering and intellectually stimulating to consider how their brand would appear in other sectors.

Then, when a large licensing deal hoves into view and people start to take a bit of an interest, the brand manager's attitude miraculously changes. At this point there's a sudden resentment that the agency should want such a large chunk of royalty - surprisingly sudden considering that up till that point it was a percentage of nothing - and every effort is made to avoid signing a long-term contract. Finally, after a protracted negotiation punctuated by long silences for various holidays and other more important work - a ridiculously low share of royalty might be agreed with a cap, no expenses and no fee. If this is agreed then suddenly the licensing agency has its work cut out to deliver huge royalties or be stripped of the account and have the whole thing managed in house.

I suppose the brand manager sees an upstart company with ideas above its station and wants to retain control, but even so the typical treatment of the licensing agency hardly augurs well for the typical treatment of new licensees.

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