Before I report on my visit to the 2004 NYC Licensing Show, let me provide a brief background for those unfamiliar with licensing. Here are a few excerpts that appeared in the June 17, 2004 New York Newsday, Business & Technology section in an article titled "Licensing Convention - Face It, Fame Pays Big" (by Lauren Walker):
"Selling the rights to a famous visage can mean big bucks for those who hold legal guardianship. It's big business; licensed products account for $105 billion in annual product sales.
Turning a revered figure into a mass-market commodity is no simple matter, said Michael Cucka, a partner in Group 1066, a Manhattan-based brand strategy firm.
"There's a real danger in extending beyond what the character actually stands for," Cucka said. That means John Wayne may not work on toothpaste tubes, just as Che Guevara, whose visage also was available at the licensing show, probably wouldn't be found gracing a luxury watch.
"Everything goes in cycles," said David McWilliams, president of Atlanta-based Fashion Victim, which designs the Che Guevara T-shirts for teen-oriented stores.
"The licensing industry has a problem. It's very ephemeral," said Jean David, chief executive of Krypton, referring to the "hit-and-run" strategy of releasing acres of merchandise for blockbuster movies that fade as soon as the next mega-movie comes along.
Longevity is not always a priority, though. Supermarket shelves will soon be stocked with disposable products splashed with ads for upcoming movies such as "Batman Begins" and "Curious George." You might even find retro names such as SMURFS and Monchhichi, which were represented at the licensing Show by owners looking to make a comeback.
In America, it seems, any brand can have a second life as long as there's a T-shirt or a toothpaste to put it on."
So you see, the Licensing Show is a place where the owners of a character seek to strike up licensing deals, where the "licensee" (the customer) pays the "licensor" (IMPS, in the case of Smurfs) a "licensing fee" for the right to use that character's name and likeness in their marketing and/or retail goods.
