Fashion Law : Fashion Lawyer & Attorney : Fox Rothschild Law Firm : Licensing, Intellectual Property

Well, we are packed up and headed to Vegas, along with so many of you. 

I hope you have some time to join me at the interactive Panel, "How To Expand Your Brand Through Licensing."  It will be held in the Las Vegas Convention Center on Tuesday, February 19 at 2:30pm, room S-229. 

My fellow panelists and I will discuss building your brand through the power of storytelling, the use of authenticity, and incorporation of social media, among other topics.  The seminar will be moderated by the fairy godmother of fashion, California Fashion Association executive director Ilse Metchek and the panel will include:

• Rick Cytrynbaum, CEO,Modern Vintage/House of Harlow 1960
• Chris DeMoulin, President, Licensing Advanstar
• Monte Henige, CEO, Tru Fragrance
• Todd Kaufman, Director of Brand Management, Beanstalk Inc.; and 
• ME! Staci Riordan, Partner and Chair, Fashion Law Practice Group, Fox Rothschild LLP 

We hope to see you there!

xoxo

Staci

ps -- for all you Fashion Law enthusiasts, this is a perfect time to meet in person and ask your questions.

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I hope everyone had a great #Grammy week, and for those of you east coasters, you survived Nemo! 

I know we confused some of you with our #FRBranding tweets on Friday so let us explain.  Fox Rothschild held a private event in honor of Grammy week that started with a panel discussion titled, "Winning Strategies For Building an Empire of Brand Equity."  @Macala and I tweeted wisdom shared by:

• Alex and Ani CEO, Giovanni Feroce (@giovanniferoce);
• Common CEO, Dan Burrier (@Dburrier);
• Amusement Park Entertainment CEO, Jimmy Smith (@TweetsFromAP);
• Blair Underwood (@BlairUnderwood);
• Christy Haubegger, Head of CAA Branding and Lifestyle Division; and
• Darrell Miller, Fox's Entertainment Department Chair.

Now, for those of you branding enthusiasts not involved in Grammy week, never fear!  WWDMagic/Project/ENK is next week, and we are holding a branding seminar just for you. 

Please come join me in the Las Vegas Convention Center on Tuesday, February 19 at 2:30pm, room S-229, where my fellow panelists and I will discuss building your brand through the power of storytelling, the use of authenticity, and incorporation of social media, among other topics.  The seminar will be moderated by the fairy godmother of fashion, California Fashion Association executive director Ilse Metchek and the panel will include:

• Rick Cytrynbaum, CEO,Modern Vintage/House of Harlow 1960
• Chris DeMoulin, President, Licensing Advanstar
• Monte Henige, CEO, Tru Fragrance
• Todd Kaufman, Director of Brand Management, Beanstalk Inc.; and 
• ME! Staci Riordan, Partner and Chair, Fashion Law Practice Group, Fox Rothschild LLP

We hope to see you there!

xoxo

Staci

ps -- for all you Fashion Law enthusiasts, this is a perfect time to meet in person and ask your questions.

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Hi everyone!  I hope you are enjoying the last few weeks of summer (and those of you in LA, are trying to enjoy the heat!)

Just checking in to see if you have finalized your plans for WWD Magic/Project/ENK in Las Vegas next week? 

If not, here is a quick reminder of some things to add to your to do list:

• Set your goals;
• Make a plan; and
• Attend some seminars!

In case you forgot:

• Ellie is speaking on August 19, 2012 at 11 am on "Fashion Retailing in the USA," which will be in Suite Surf AM in Mandalay Bay.  Contact the California Fashion Association ("CFA") for more information; and
• I am speaking on August 21, 2012 at 2:30pm at "BRAND EXPANSION THROUGH LICENSING - THE SECRETS OF SUCCESS," which will be in LVCC, Room S230.

Please come join us!  We would love to meet you in person.

And you never know who just might be swimming around......  Click here for more info.

;)

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Happy August everyone.  Since August equals back to school for all us garmentos, I thought it an appropriate time to get school related advice. 

I am in discussions with a top Southern California Law School to teach a Fashion Law class, and if it goes well, to help design a Fashion Tract as a subset of its Entertainment program.

For the first "proof of concept" class, as my fashpreneur like to call it, I am debating how to structure the class and would love your input.  Should Fashion Law 101 be:

• A survey class that touches on all things you need to know as a fashion lawyer.  In other words we would cover a wide range of topics, but each topic wouldn't be in-depth; or
• A class that follows the typical life-span of a fashion brand, that provides hands-on training on how to perform the day to day duties of a fashion lawyer.

My hunch is the first time I teach, it would have to be a bit of both, but in the future, I see the above as Fashion Law 101 and Fashion Law 102.  What do you think?

Also, in either class, what would you want to learn?  If you are a law student, what topics would you want to cover?  If you are a practicing lawyer looking to transition from your area of practice to Fashion Law, what do you wish you learned in school?  If you are a fashion brand, how should your lawyers be trained to better meet you needs?

Looking forward to all your feedback! 

(And keep your fingers crossed)

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Hey everyone.  If you have been following me on twitter or a reader of this blog, you'll know that in 2011 we took a look at Brand Collaborations and predicted that you would see an increase in these joint ventures.

Well, that prediction has (and will continue) to come true.  WHY?  Because a smart brand collaboration is a why to extend your brands reach to a new audience and create more raving fans.

So, take a moment and back away from your last minute holiday shipping and take a look at this video from the Today Show featuring this years hottest brand collaboration - Versace for H&M.

 Happy Watching!

Visit msnbc.com for breaking news, world news, and news about the economy

 ps - in full disclosure, Fox works with H&M but did not work on the Versace for H&M deal, although I wish I did!

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If you are a regular reader or follow me on twitter, you know I spent most of last week in Las Vegas at the 2011 Licensing International Expo (#LX11).

The show was amazing and I was able to mix and mingle with some of the most influential people in branding.  Even more importantly for you, I learned a new word:

SLICENSING

What does it mean?

It means to divide one asset, usually a trademark in the fashion industry, into as many pieces as possible. 

Now, this concept of diversifying a trademark into small consumable pieces is not new, nor uncommon in fashion licensing.  This is a recommendation that I have been making to fashion brands for years so they can become a lifestyle brand. 

What I didn't know until last week is that there is a word for it!!!

LOVE!!!

What do you think?

photo credit: Communal Table

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So how do you build a brand?  ahhh.  That's a million dollar question that many professionals get paid lots of money to answer.

Answering the question - what is brand building  is an easier place to start.

Building a brand is expanding your company from the products that made it fabulous and successful.  You engage your loyal customers and appeal to your target market and translate the quality and integrity you are know for into other products.

Sounds simple right?  Not so much.

But, you are lucky.  Stick with me this week as I provide insight and coverage from the 2011 Licensing Expo, sharing tips and techniques to help you grow your company into a brand.

viva licensing!!  #LV11

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You have heard the terms brand building and lifestyle brands on this Blog.  You may be asking yourself, what exactly is Staci talking about and why should my Fashion Company care? 

Let's discuss one at a time.

A lifestyle brand is one that permeates into all aspects of a person's life.  A lifestyle brand expands from one category of items, like clothes, and manages to become important in all aspects of your target customer's life. 

In other words, you can find a products from a lifestyle brand in all rooms of your house or its products enjoyed by a wide cross section of the public.

Fashion examples include Tommy Bahama, Tommy Hilfiger, Martha Stuart, Donna Karan, just to name a few.  Celebrity examples include Jessica Simpson, Kim Kardashian, & Sean Combs.  Harley Davidson and Nike are others.

Sounds good right? 

So how do you turn your Fashion Company from a one hit wonder into an orchestra?  Check back tomorrow, when I'll address brand building.

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Angry Birds.  I love it, my kids love it.  The Millennials love it.

And Rovio, the maker of Angry birds, gets licensing.  Just today, Mashable reported that Rovio will be releasing a family cookbook full of egg recipes under the Angry Birds brand.  How smart is that?

[and for those of you under a rock unfamiliar with the game, eggs are what the Angry Birds are trying capture back from the evil green pigs]

Why is this brilliant branding move?

Because Rovio is expanding the Angry Bird brand with the next logical step, meaning it is connecting some part of its existing product (the eggs in its video game) with its target market/core users (parents and their children) in a new and different way (in the kitchen, cooking as a family).

Mashable reports that the Angry Birds video game has enjoyed 1.2 billion hours of usage in the U.S.  With the Angry Birds Cookbook, Rovio will gain more of your off-line, quality family time in your home's most sacred place -- the kitchen.

Fashion Companies can learn from Rovio.  What part of your customer's lives can you expand into?

To successfully become a lifestyle brand, you need to expand with measured, logical steps.   Otherwise, you, like the Angry Bird pigs, will end up in stuck in the mud.

photo credit: Rovio

ps -- Rovio's Angry Bird Rio, released in partnership with 20th Century Fox, was another brillant move.  Not to mention its T-shirts & plush toys.  I bet we'll see great things from Rovio in the future!

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How excited am I?  As posted yesterday, I get to go to Vegas and report on and tweet about the Licensing Expo!  And I am slated to conduct some pretty cool interviews with top branding executives from Sony, Marvel, CAA and the Carton Network.  Cool huh?

So for those of you who are not familiar with licensing, in short, it is a way to turn a company into a brand.  What's the difference?

A company generally makes one category of products while a brand crosses multiple platforms. 

For example an apparel company can make just women's clothes and then begin to build a brand by adding in additional products like shoes, jewelery, handbags, etc.  Or you can take a music artist and then create a video game, a tv show, a clothing line, headphones etc. 

This is generally called vertical licensing - expanding your core product into completely different, but complimentary, product categories.

You can also build your brand by licensing horizontally.  An example would be a t-shirt company licensing into denim, dresses. outwear, etc.

The fashion and entertainment industries use all kinds of licensing models to build brands.  You may have heard the terms sponsorships, endorsements, joint ventures, direct to retail, development deal or other hybrid words tossed about -- we'll discuss these throughout the week.

For now, to understand the basics of trademark licensing, which is the most common in the fashion industry, click here.

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In the past quarter, there has been a tremendous increase in licensing and acquisition activity in the fashion industry.  For example, in June, WWD reported that Jamie Salter of Authentic Brands Group is actively looking to acquired lifestyle brands.  Two weeks ago, Billabong bought RVCA. 

Is your Fashion Brand being overlooked?  And if so, why?

Yesterday, I published a practical advice piece, "Are You Fit to License" that discusses what licensing is, how it works and offers tips and advice as you begin your licensing journey.

Remember, done right, licensing gives a company opportunity for massive growth in a very short amount of time, for a minimal investment.  Why?

Because every dollar you receive in royalty goes directly to your company's bottom line.

Photo Credit: A Reason to Write - India

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Shakira knows how to work a crowd into a frenzy.  And her deal to write and perform the theme song of the World Cup, Waka Waka (This Time for Africa), solidifies what many already know: she is a cross-marketing and branding genius.

If you recall:

• Shakira is a Colombian singer who became famous in Latin America and Spain in 1995; 
• In 2001, she crossed over into the English/American pop scene with "Whenever, Wherever [Video];"
• In February 2006,  she released "Hips Don't Lie" on L.A.-based radio station KIIS-FM (on ; the Ryan Seacrest Morning Show) and went on to perform on many pop-culture TV  shows including : American Idol, The Ellen DeGeneres Show, Live With Regis and Kelly, The Today Show, Total Request Live, and the 2007 Grammy Awards;
• "Hips Don't Lie" can be heard in the EA Sports video game MVP 06 NCAA Baseball, the film soundtrack to Ice Age: The Meltdown, and on MySpace records. soundtrack on 27 Dresses; and  
• According to unstaged, "Hips Don't Lie [Video]" is the most successful worldwide song of the 21st century to date.

Now, Shakira has parlayed that success into an even larger market: international football or soccer here in America.  Soccer is the most watched game on the planet, with more than 75% of the world's population watching the sport.  It is played in every country in the world and generates billions of dollars of income a year.

Wow. 

Last week, Sony Music announced that Shakira sold over one million Waka Waka singles since it became available May 11.  Waka Waka is the fastest-selling single in the history of the World Cup and the biggest-selling World Cup single of the digital age.

So, what can your fashion brand learn from Shakira?

• Build your core fan base first;
• Grow your brand by looking by looking for complimentary channels of distribution or similar target market demographics.  This first step must be a logical extension and not exclude your core supporters;

Promote and market your Fashion Brand in any way that touches your target customer's life;  remember not to overlook using marketing funds to support your licensees;

• Have courage and be creative so your future joint ventures are with unique and unexpected partners (like Lady Gaga and Polaroid); and finally
• While you may not have Shakira's hips, bring your own finesse, personality and passion to your product. 

So have fun learning to shake like Shakira.  You bottom line (and customers) will notice.

photo credit: hoodhollywood.com

p.s. showing up in Roberto Cavalli can't hurt either.

For the You Tube video of Shakira at the World Cup closing ceremonies, click here.

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Guest post by Sidney Blum , CPA, CFE, CrFA, CFF, DAFBA, FACFEI, CPEA of Green Hasson & Janks

Part of the joy of the holiday season is preparing your new year resolutions and if your company has licensees, then now is the time to start planning your annual royalty audits, especially if your right to audit provisions will soon be expiring, and especially if they expire before the end of the year.    Here’s how:

First, review your agreement and income streams.  Have you been getting what you expected? 

Second, are your license agreements specific enough to allow for a royalty audit and what documents are to be provided during an audit?  Many licensees are only willing to produce the exact documents specified in an agreement.  A common auditing provision in licensing agreement will state, the royalty auditor can inspect the books and records that support sales.

However, royalty audits require the auditor to examine much more than sales records, such as inventory records, invoices, insurance coverage, sourcing, and perhaps other license agreements for most favored nation pricing.    

A better drafted provision would give the auditor sole discretion to examine all the documents considered relevant by the auditor in order to perform a complete royalty audit, including making personnel available for interviews and requiring the licensor to prepare special reports at the auditor's request.

Third, send written notification to your licensee that you and/or your auditing professional would like to schedule an audit.  If your agreement is not specific, never fear, you can try and use this audit scheduling request as an opportunity to get the specific records listed after the jump.  Sending out an audit notification letter might preserve your audit rights.  After you review the documents, you can actually determine if an on-site audit is needed.

Finally, make sure you follow through.  Over 90% of all licensees under report royalty.

That’s a lot dough not going to your bottom line.

Photo credit: prescription access litigation

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These days everyone seems to be enthralled with Fashion Licensing.  What is it?

Licensing is the process of "renting" your fashion company's intellectual property, generally its trademark, but sometimes its copyright, to another entity for a sum of money called royalties, for a certain period of time, for a certain product or category of products, for an agreed upon period of time within a certain territory.

If you answer yes to both the questions below, your fashion company is probably ready to start liscening: 

1. Does your company own its intellectual property (this will generally be your company' name and/or logo)? and
2. Is your company doing more than $30 Million in sales?

Why consider licensing?  Because every dollar earned goes directly to your company's bottom line.  Done right, licensing gives your company an opportunity for massive growth in a short amount of time, for minimal investment.

On the flip side, if you chose the wrong licensing deal or licensing partner, you will lose customers and all the goodwill you have built up your brand name. 

Is it worth the risk?  Yes.  If you do your homework, spend some time "dating" and make sure you have a good prenup.  Then, utilize the know-how of "specialists" to diversify your most valuable asset and create a revenue stream where one did not previously exist.  Liscensing will turn your fashion company into a lifestyle brand.

Photo Credit: A Reason to Write - India

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You have may heard the term direct to retail or DTR, but ever wonder what it is? It is a licensing relationship where retailer effectively becomes the licensee as well as the seller of the product. This means that the retailer pays a royalty to the licensor and sources licensed merchandise itself. The royalty to be paid can be based on the retail price or vendors' sales price (i.e., the retailer's cost). DTR deals often do not include a guarantee, but the marketing commitment is one of the key terms. Importantly, retailers make better margins on DTR products than the traditionally licensed goods.

Many well known companies such as Disney and Icoxic have been in the DTR game for awhile now. Disney was one of the first. In 2008, Iconix reported that 50% of its approximately 250 million in revenues in came from direct-to-retail arrangements. In 2009, the company projects that those numbers will increase, with 60% of its revenue coming form DTR.

So how do you get a DTR deal?

• Your company must have proven capabilities as a potential supplier or vendor to get in the door;
• Once in, make your pitch to fill an existing gap that you have identified in retailer’s portfolio and why you are perfect to fill it; and
• If you get the deal, remember that establishing a good relationship is the key to long term direct-to-retail success. With the DTR model, retailers generally want to establish long-term relationships on select brands, and once a partnership is formed, it's likely to sustain itself over time.

If the match is a good one, everyone wins. Why? Because when retailers work with their own suppliers, they can get product on the shelves more quickly, and it can be on trend. The minute a property is successful or a movie turns out to be a big hit, retailers can turn something around and have it in store in no time. And for the licensor, that means more money directly to your bottom line.

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