FOR IMMEDIATE RELEASE

March 17, 2010

 

 

CONTACT:
Cara Bernosky, President
IMC Licensing
502.589.7655
cbernosky@imclicensing.com

 

 

 

 

  IMC Licensing Research Shows 2009 May Not

Have Been Quite as Bad as Previously

Thought for the Licensing Industry 

 

LOUISVILLE, KY – IMC Licensing, the nation's leading full-service licensing agency specializing in consumer product brands, recently surveyed licensors, licensees and agents to take a temperature check of the licensing industry and general trends during 2009. The results showed that though 2009 was definitely a year with its challenges, it wasn’t actually as bad as many people think.

“The results of this recent survey were surprisingly good,” said Cara Bernosky, IMC Licensing President and Co-Founder. “While no one is necessarily dancing in the streets, good solid licensing deals are out there and the licensing business is holding its own.”

According to IMC Licensing 2009 Year-In-Review Survey respondents, the volume of new licensing opportunities for brands represented in 2009 actually increased:

·         51% said volume increased

·         27% said volume stayed the same

·         22% said volume decreased

While brand owners are increasingly interested in signing licensing deals, however, licensees are more selective than ever in what is becoming more of a buyer’s market. Licensees are searching for the right brand to differentiate themselves to retailers and want the right deal on the right terms with minimal exposure and risk:

·         52% of brand owners indicated an increase in willingness to sign licensing deals

·         Only 11% cited a decline

·         Only 29% of licensees indicated an increase in willingness to sign licensing deals

·         45% cited an increase

Industry deal terms are moderating with nearly 90% of respondents saying that advances on new deals have decreased or stayed the same as more reasonable advances with staged in guaranteed payments help licensees get a program off the ground. The good news is that in exchange for some relief on guaranteed payments, 84% said that royalty rates have either held steady or even increased.

“These trends illustrate that licensors and licensees are working together more than ever as true partners to bring the best deals to fruition,” added Ms. Bernosky. “When the right brand and the right licensee can come together to fill a legitimate consumer need and offer differentiation in the marketplace at a price point consumers can afford, we’ve done a good thing.”

  

ABOUT IMC LICENSING

IMC Licensing leads the industry with its focused approach to brand-building through licensing. We help brand owners and manufacturers turn the world’s best consumer product brands into great new consumer products.

IMC Licensing has worked with companies like Duncan Hines, TABASCO, Valvoline, General Mills, Butterball and Borghese. For more information, please visit www.imclicensing.com.

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