Seasons Greetings to all!!

May your wishes and dreams come true this Christmas.

Cheers

Ever since Avatar there hasn’t been a decent 3d movie worth $15.  In fact,, I don’t go to 3d movies that are not filmed in 3d.  The 2d movies that are rendered into 3d in post just don’t cut it as official 3d movies. So if it was shot in 2d I choose to watch it in 2d and save the difference.

We all know this is happening for producers and distributors to make more money from each film they show.  Profit at the theaters seems to be rising and all thanks to 3d films.  Did we really need to see Thor in 3d?  The story stayed true to the comic series but the 3d vision just looked pasted on and not worthy of the extra money.

So when Avatar 2 comes out AND if it is filmed in real 3d – then I will shell out the extra bucks to watch it in 3d.  Those films produced in 2d and then faked into 3d, if the option is there to watch it in 2d or 3d I will now on pick 2d.  I don’t like wearing the glasses any way.

Enjoy your movie experience and let’s hope original screenplays start being purhcased like they used to be…  cuz I have a few great scripts Hollywood should produce or television networks should make.

Sandford Tuey

info@Playdigm.com

$309 Million in Bratz Case

Playthings Staff reported = Van Nuys, CA – In a ruling by U.S. District Court in Santa Ana, Mattel was ordered to pay MGA Entertainment, maker of Bratz dolls, $85 million in punitive damages for “willfully and maliciously” misappropriating MGA’s trade secrets and $139,887,177 to cover MGA’s legal fees and costs. These amounts are in addition to the $85 million previously awarded to MGA by a jury, for a total of $309,877,177 in damages and fees.

On April 21, 2011, a federal jury ruled that MGA Entertainment owns the rights to the Bratz dolls and unanimously rejected all of Mattel’s claims; it did not award any copyright damages, finding that MGA, not Mattel, owns the idea for Bratz as well as the original sketches for the doll.

- Your brand has value even before it is on the shelf or in the marketplace.  All the development costs in the design stage add up and have value so keep documentation to prove that you created the product/project as you just never know when and where you may have to prove that it is your baby and not someone else’s.

Even the big boys fight over proprietary property because they know the true value of a successful project. Millions are at stake – protect yourself by keeping excellent records.

The following is copied verbatim and is important to brand owners worldwide. Check it out!!

(Reuters) – Brand owners will soon be able to operate their own parts of the Web — such as .apple, .coke or .marlboro — if the biggest shake-up yet in how Internet domains are awarded is approved.

After years of preparation and wrangling, ICANN, the body that coordinates Internet names, is expected to approve the move at a special board meeting in Singapore on Monday.

Today, just 22 generic top-level domains (gTLDs) exist — .com, .org and .info are a few examples — plus about 250 country-level domains like .uk or .cn. After the change, several hundred new gTLDs are expected to come into existence.

The move is seen as a big opportunity for brands to gain more control over their online presence and send visitors more directly to parts of their sites — and a danger for those who fail to take advantage.

It will also change the way search engines like Google find results, and the way organizations use search-engine optimization to improve the visibility of their websites in search results.

“As a big brand, you ignore it at your peril,” says Theo Hnarakis, chief executive of Australian domain name-registration firm Melbourne IT DBS, which advises companies and other organizations worldwide about how to do business online.

“We’re advising people to buy their brands, park them and redirect visitors to their existing site, at the very least,” says Hnarakis, whose more than 3,500 customers include Volvo, Lego and GlaxoSmithKline.

If the change is approved on Monday, applications are likely to open in January for a 90-day period before closing again, potentially for years.

It will cost $185,000 to apply, and individuals or organizations will have to show a legitimate claim to the name they are buying. ICANN is taking on hundreds of consultants to whom it will outsource the job of adjudicating claims.

“The commercial participants are the most active, aggressive and articulate members of our society,” ICANN CEO Rod Beckstrom told Reuters in a recent interview, saying trademark owners in particular were anxious about how the new regime would work.

As well as big brands, organizations such as cities or other communities are expected to apply.

GTLDs such as .nyc, .london or .food could provide opportunities for many smaller businesses to grab names no longer available at the .com level — like bicycles.london or indian.food.

The new domains will also change how ICANN works, as it will have a role in policing how gTLDs are operated, bought and sold. Until now, it has overseen names and performed some other tasks but has been little involved in the Internet’s thornier issues.

To prevent so-called cyber-squatting, gTLD owners will be expected to maintain operational sites. ICANN will have to approve transfers to new owners at the top level.

Disney will not be Trademarking ‘Seal Team 6′ since the US Navy has decided to protect it’s rights.  Wouldn’t you expect them to defend what is theirs.

I am glad that this has happened as it is the right thing. Too many times entertainment companies try to scoop the rights from the creators. In this case, Seal Team Six wins another one!

http://www.guardian.co.uk/film/2011/may/26/disney-withdraws-seal-team-6-trademark-application

Why didn’t the American Government protect the military designation SEAL TEAM 6? Sure it would cost a fortune to trademark every branch of the military but now it looks like Walt Disney Company has applied to register “Seal Team 6″ according to MediaBistro

This is the name of the special forces unit that killed the world’s most wanted man and terrorist Osama Bin Laden.

It seems Disney now owns the exclusive rights to use Seal Team 6 on ‘merchandise. So expect Disney to capitalize on clothing, footwear, headwear, toys, games and entertainment and education services. This is not the first time Seal Team 6 was trademarked by a company. NovaLogic, Inc., abandoned two associated trademarks in 2006. Those trademarks were for computer and video gaming.

It is my personal opinion as a veteran that the commercialization of a government entity should not be done by corporations unless legally allowed by those that created the group or armed forces department. At the least, I hope Disney will allocate a fair royalty percentage to the members of the real elite members of SEAL TEAM 6.

Sandford Tuey
admin@Playdigm.com

QUESTION – “What should be in a query letter to gain interest from a film producer?”

ANSWER -  Query letters are the standard accepted way to entice producers, production companies, studios and other groups that will inspire people or companies to ask for more information on your project or product.  Here is a simple explanation of the format I have found the most effective:

Contact’s name = the person you need to contact (if you don’t know the name of the head of Acquisitions at the company or the person you need to contact, call the company in question and ask who handles the department you want to contact). Make sure you also take the name of the person you talked to as they are able to put your future calls through to the right people or in time, they may become the gatekeeper you need to pass through to talk or meet the person that can green light your deal.

Address = straight forward. When you call to get the name of who you need to call make sure the address you have is correct.

Date = Always record when you sent this correspondence for record keeping purposes.

Re: = The ‘To the point line of what you are asking for.’

Personal Name = If you were introduced to someone as ‘Bob’ instead of their full name ‘Robert’ then by all means address this person as informally as possible. This is to help become a friend of this power person as quickly as possible, because we all know that people help their friends a lot more than strangers.

First Paragraph =  Come to the point with a catchy, positive, interesting way. Explain your project/product in as few words as possible but in enough detail that will get them to want to know more or at the least read on.

Second Paragraph = Give them as many reasons why your project/product is a perfect fit in their organization and/or why it will be successful. Try not to generalize but be specific and if you have some easy to digest facts/data insert it (like market size or audience your project has or users of your product or volume of sales.

Third Paragraph = This is where you explain who you are and insight about your background and how you can assist in the success of your project/product.  Don’t give a resume but specific information about yourself and how your knowledge helped you create what it is you are trying to interest the reader in or how you can help ensure its success.

Ending = A simple ‘Best Regards’ or ‘Respectfully’ can’t hurt.

Your name = What ever name the contact knows you as or your full first and last name.

Contact Information = If you are not using letterhead then under your name and signature put your telephone number, email address then your mailing address.

Written Note = I have found adding a personal hand written aside or note will also be read as much as a PS. This shows that you wrote the letter and not one of your staff.   Personalizing each contact is a bonus and stands out. When Robert Ludlum jotted down a few points any where on letter margins believe me I turned the letter and read them all.

Keep your Query letters one page or maximum two.  I also like to add a One Sheet or color brochure describing the project/product.

Respectfully,

Sandford  Tuey

PS:  If you have any questions send them to Admin@Playdigm.com and you may see an answer to it.

This Week’s Question  ‘Is there a Worldwide Trademark?’

No. Not yet.

I wish there was a quick one stop Trademark office that registered a Trademark in every country for a one time fee, but that option is not available yet.

Presently, you have to register a Trademark in the countries you are using it in or in certain cases, intend to use it in.  This varies with each nation so I always recommend to my clients to hire a Trademark agent to handle the registration procedure. Usually, an agent will have representation in many countries who are familiar with nations they work in.  This ensures that Trademarks are properly registered and monitored for each region you desire to protect.

The cost to register a Trademark is different in pretty much every country so calculating the worldwide cost is next to impossible.  So I will refer you to Trademark agents who keep up with the changing registration fees as this is in your best interest.

You don’t want to invest thousands upon thousands of dollars in developing a property, and then find out the Trademark you wanted to use is already taken, or worse, is scooped by someone else after they came across information about your project.

So ensure you file in as many nations as you can afford to and expect to market your property in to.  Better safe than sorry.  By adding a professional Trademark agent to your project and business plan, it shows your investors you know what you are doing and are protecting their interests the best way you have available.

The name of your project helps sell it around the world and will draw fans and buyers, so make sure it is unique and catchy.  By Trademarking your project name you help secure your investment. Good luck with your endeavors!

Cheers!

Sandford Tuey

Have your brand and entertainment questions answered by sending it to

admin@Playdigm.com

This week’s question is ‘How to Value a Brand’

This is a complex question to answer and will need to be broken down into three parts: Perceived Value; Taxation Value; and Financial Value.

Perceived Value: This differs in the mind of every person who knows of your brand.  You would agree that the Harry Potter brand is more well know than my Galactic Gladiators brand. Is this because J.K. Rowling sold millions of novels based on her Intellectual Property and that it has been made into eight films and other merchandise – of course.  Easy to figure that one out.

So someone interested in licensing Harry Potter would be expected to pay more than those interested in licensing Galactic Gladiators. Not so.  Someone who is interested in space and not magic fantasy would be more interested in my brand than Ms. Rowlings. Different genres equals different markets.  It all comes down to – how interested is the Licensee or consumer in your brand.

Taxation Value: This valuation varies from country to country so I will just touch on what can be done if you are given a valuation of zero from your Tax Department.  If you are being taxed on that value, you should be happy with such a low amount, get it in writing, thank the Tax Department and smile.

Let’s say you need to establish as high a value as possible. Start with a worse case scenario, in that, they state your brand has no value at all.  The first thing I would do is kindly remind them that you spent money on registering a copyright and that they should add that cost to the value as this is a government fee that must be for some sort of legitimate reason.  In my situation, I was credited with the $50 for registering copyright as it lasts fifty years after the death of the creator.  Last time I checked I was still alive and therefore still covered by copyright.

You should then request that the Tax valuation acknowledge all the Trademark costs for all the nations you have filed in.  They should accept these costs as long as they are current and in good standing.  These fees can range from $400 per country to thousands of dollars, add each trademark for each nation you have registered in.

If you are not manufacturing products using your brand but you have paid for design and pre-production materials that would allow you to produce products with your brand on them, you may be able to include these amounts minus some depreciation. The key here is to ensure the products using your brand can be made at any time and the replacement cost for such production materials is substantial.

If you do not have Licensees paying to use your brand at the moment but have in the past, then you can request that in the future you may license your brand again.  You most likely will not be able to get this future income/value attached to your valuation but if you don’t ask you won’t get the opportunity to have it accepted.

In the end you will have a government documented valuation but this is usually low, unless the Tax Department is trying to maximize the tax you are to pay for purchasing the brand as an asset or selling it and they need to establish the taxable amount to calculate your tax payment.

Financial Value: Accountants are professionals in establishing a value for an asset but licensing specialists are recommended.  Example: A real estate agency and a bank retain the services of a real estate appraiser before commencing the legality of a mortgage.  I recommend that you use an accountant who has appraised brands in the past or bring in a consultant who has experience in the licensing industry.  You would be surprised how much difference in asset value a lawyer can have from a banker or an accountant.  Rarely does the owner of the brand agree in either of the professionals valuation.

If your professionals can not come to an agreement on the value of your brand and you need a number for your business plan or to sell it, you can make up a number.  However, is this value realistic or will anyone pay the amount you have guessed it is worth?  By dealing with your nation’s tax department (in Taxation Value above), you will be able to show a factual amount to start from.  Since it is next to impossible to come up with an exact figure, having your revenue taxation division establish a valuation for you, helps you provide a more realistic valuation for accountants and professionals to put into your business plan.

If the brand has been sold in the past, then this amount could be accepted as the present value plus any enhancements or improvements.  An improvement or enhancement would be a sequel based on the original movie; or mass merchandise licensed since the brand was purchased and these new revenue streams can influence increased value; or you resell the brand for an even higher amount than what you paid for.  Careful since you will have to pay tax on the Capital Gains (the profit) from any sale.

After all the costs, expenses, revenue streams, sales that are legally allowed to be added to the value of your brand, you will have the actual value.  However, there is a thing called ‘Good Will’ which is next to impossible to put a price on.  This ‘Good Will’ addresses the positive value of your brand in the mind of consumers and people who are aware that your band exists.

The price to put towards your brand’s ‘Good Will’ is as high as you can get from the potential purchaser or licensee.  Most Licensing deals vary from 1% to 15% based on gross or net of the sales price on the product the Licensee is going to make and sell. Sure there are licensing deals that get higher percentages but they are not the norm. Your negotiation skills will determine this ethereal value. Never underestimate your brand’s value but also don’t overvalue it where it may kill the deal.  Better to get 10 percent of something than 100 percent of nothing.

Of course there are many things that can affect, alter and change the value of a brand.  Since many brands are unique unto themselves and each valuation can differ from accountant-to-accountant, fan-to-fan or owner to owner, in the end it all comes down to popularity.  The more popular your brand – the more it is worth.

Everything has a price.  Those that say they would not sell their brand for any price have unintentionally put a value on their brand of priceless (which, in itself is a price).  However, if you are serious about selling your brand or trying to figure out what you should charge for a licensee to use the name and likeness of your characters and brand name, you will find out during the negotiation process what those interested in your brand are willing to pay. That amount is the true value of any brand.

Be realistic in your valuations and remember everything above is a guesstimate and unless you have a professional study your brand in detail, be careful of what someone else thinks your brand is worth.  They may be trying to get you to believe your brand is worth less than it is just to get a great deal on your fantastic brand and license.

Send your questions to Admin@Playdigm.com

Sandford Tuey

This weeks question is :  How did you license Robert Ludlum and to have him co-design your spy game?

2E:  My success in licensing the name and likeness of Robert Ludlum was a combination of many factors.  The first, was that he was easy to track down, since he was a famous author printed by Bantam Double Day Dell. This book publisher directed me to Mr. Ludlum’s agent, who then spoke with him to see if he was interested in lending his name and likeness to a spy board game.

After providing a prototype and information about the game concept Robert Ludlum said ‘No’.  You see, the original title was ‘Robert Ludlum’s Game of Anti-Terrorism.  He did not like the idea of having his name associated with terrorism or violence.  This confused me because I had read a few of his books and this was what most of his writing was about.

No, to me means ‘not right now’, and so we resubmitted the game to Mr. Ludlum with a new title – ‘Robert Ludlum’s Game of Counter-Espionage’.  He liked it but the object of the game was to figure out which player was the double agent and kill him.  The first player to do that won the game.  Mr. Ludlum did not like the idea of his name being associated with assassination.  This was the second ‘No’ I received. Again, this made me shake my head because anyone who has read any of the Bourne series knows the main character may or may not be an assassin for the government.

I contacted Mr. Ludlum’s agent once more (by this time we were on a first name basis) and asked to mention that we decided to replace the word ‘kill’ with ‘terminate’ the double agent.  Again he said ‘No.’

Back to the drawing board.  I then decided to try again.  Would he be willing to become involved if we changed the word ‘kill’ to ‘deactivate’ the double agent?  Robert Ludlum liked my persistence and ability to adapt, so he finally said ‘Yes’ after a year of negotiating.   He of course received a financial payment up front and had a few other changes he wanted incorporated into the game but we were willing to do whatever it took.

From then on, Robert Ludlum and I worked together on his Game of Counter-Espionage, even drafting a short story that explains why the six international spy agencies are working together and in the end must eliminate the double agent.  So in a round about way, to the best of my knowledge, I ended up being the only Canadian to co-write with Robert Ludlum (one of the highlights of my writing career).

This proves that – Persistence is Omnipotent!

Keep moving forward…

Sandford

Send your Questions to Admin@Playdigm.com