PLAYDIGM Entertainment Licensing & Branding

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

I personally believe that success at anything requires a good team and a great project.  This requires a fantastic idea or product and the money to retain quality people.  Surround yourself with the most professional people you can, delegate authority to them  and ensure everyone completes their tasks on time.

As I built my team by adding lawyers, accountants, a Trademark agent, sales people, computer pros, etc., I found it easier to raise the funds necessary to make each project I was working on.  Different projects require different professionals so choose wisely to ensure everything is covered.

How do you convince the right people to join your team?  I will use the movie industry as an example:  First create a great idea that will attract those that will work with you because they want to be associated with such a cool project and they believe it will attract millions of viewers and be profitable. If your high concept has the potential to do this, then your chance of gaining the interest of a reputable producer and actors (if there is a strong character arc) improves and which in turn, can bring a studio on board.

l think Johnny Depp is one of the most talented actors we have on Earth and I go to everything he is in, even RANGO, his animated movie is on my ‘to see’ list.  To attract an excellent actor,  you need a great unique story with an excellent character for him/her to play.

Make sure your initial idea is turned into a Logline, a brief pitch,  a synopsis  and a solid treatment or better yet, a completed Spec Screenplay.  The more developed the product/script is, the easier it is to get to the next level.  The day your screenplay lands on a producer’s desk is because they already want to read it and your concept got them interested enough to ask for a copy.

Make sure your protagonist/hero has a fear he/she must face or an emotional problem they must overcome or a hard to reach goal.  A role that an ‘A’ list actor can sink their teeth into and desire to play the part.  If you can excite an actor or two, especially the type that distributors, producers and studios love, you are on your way.  Most people will say approaching stars/actors directly is not a good idea but I believe the more you package a deal – the more chance you have at Hollywood noticing you.  Some talent agencies frown on this but you can always ensure that the contract you have those involved sign is dependent upon certain closing conditions (another post for another time). That way if a more talented actor wants in or the Studio/Producer want another actor, you have the ability to do what it takes to move forward.

Your lead character’s actions should flow toward the achievement of their objective.  The obstacles you put in the way generates the plot and the greater and greater obstacles – the better the plot.

During the hero’s journey overcoming obstacles to reach their goal, they must transform themselves personally.  After facing their fears or reaching their goal – this defines your character’s arc – if your lead character is the same at the end of the story as they began, the character has no character arc.  The combining of character arc and how they faced the obstacles creates the underlying theme of your story.

With an excellent character arc, you have a better chance at attracting a star or famous director.  Take into account, that directors and stars have many scripts to choose from, you need yours to stand out above the others.

Once you track down the people you require to make your project, you will have to compensate them in some way.  Normally this is with some form of currency.  Some actors have ‘Pay or Play’ deals (these are where the person gets paid the agreed amount if the movie or product gets made or not).  Since we all know everything is negotiable, don’t forget to offer them something else if you don’t have the money at this moment in time.  Be creative because you never know what may entice the all important next element to ensure success.

A credit in your film or some form of recognition can interest those that would like to add to their resume.  For someone who is already famous or popular giving them points in the project may be the needed factor to gain their interest (the more you offer of the back-end revenue, the less you normally pay up front to retain their talent).  Careful as this could lead you to earning less in the long run.

Hollywood studios  buy over 10 times as many scripts as they produce into movies, so hopefully your screenplay or product will be the one that is made because you got the right people on board and attracted those that draw the funds to make the project a ‘Go Picture’!

Stay focused on achieving your goals and in time and with the right team, anything can happen.  A little good luck can also help you become successful.

Sandford Tuey

admin@Playdigm.com

Persistence is Omnipotent!

Q: What is the going rate for a licensing fee percentage?

2E: This can vary depending on the industry you are in.  On average, in the entertainment industry, a back-end licensing royalty can range from nothing to what ever you can negotiate.  Depending on your entertainment lawyer, you should be able to obtain or pay 5 % to 15 % of the sales prices of the item the brand you are licensing is sold for.

I have also seen the licensing fee be part of the manufacturing cost too as it is easier to calculate and keep track of for the manufacturer/licensee.  My preference is to pay no more than 10 percent for easy math purposes and because that is what Stan Lee receives from his Marvel settlement.  Even J.K. Rowling gets 10 percent so why ask for less (unless you are getting a huge advance then everything changes).

For example: A screenwriter can option a screenplay and receive an option advance.  When their script is being produced into a film, then the total payment amount owed is usually paid minus any advance.  Most times writers get this principle amount in tranches upon completion of certain rewrites and polishes, etc…

In the end, remember… everything is negotiable.  If you don’t ask for the best deal – you won’t get it.

If you have a question about the Toy, Film, Television, Game, Comic, Licensing & Branding industries just ask.  I’ve been at this since 1985.  If I can’t answer it, I may know someone who can.  After all – it’s who you  know that counts too!

Sandford Tuey

Send questions to admin@Playdigm.com

Back in 1986 I was expanding my company’s product line at the advice I received  from buyers of games attending the American Toy Fair in New York.  We only had the Original Bruce Lee Martial Arts Game at the time and the facts were made clear.  It costs almost the same amount of money to activate a Buyers Account for a one game company as it does for a company with many products.   Therefore, they prefer to purchase from companies with a product line.

So all that year, my friends and I worked on designing new games for the company.  That is how Night of the Ninja – a Reality Role Playing System came into being, as well as my Terminator board game.

I loved the original James Cameron Terminator film and immediately after seeing it I started work on a board game.  It took several months, but an interesting game was created so I contacted the company Hemdale, who controlled the rights at the time.  I was told it was a bad time to try and license the Terminator brand.  It seemed that Mr. and Mrs. Cameron were in the midst of a divorce and the rights to the proprietary property were in dispute (Gale Anne Hurd was producer of Terminator and claimed co-creation of it as well).

While at the Chicago Hobby Industries of America trade convention, I saw a Japanese model company with a 12 inch Terminator robot model. After a long conversation about how they got the legal right to manufacture a product based on the powerful Terminator brand, I bought one.  They had negotiated their deal prior to the legal complications between Mr. Cameron and Ms. Hurd.

Not being so lucky, I ended up with a fantastic Future Robot versus humans board game but very risky to manufacture and market without the Arnold Schwarzenegger robotic look and story. A generic version would require a huge marketing budget to get the world to know it existed. Whereas, a product with the Terminator brand on it would receive instant recognition.

After waiting years for the legal dispute to be settled, I once again contacted the licensing rep but since the entire project rights had been sold to a new company, the licensing costs had skyrocketed.

I waited again for years and now the Terminator rights are again in question since “Salvation”  and Sony  watched three companies owned by Anderson and Kubicek who own the Terminator rights filed for bankruptcy, triggered by a disputed debt owed to Pacificor, LLC, a Santa Barbara hedge fund that loaned them money to make the purchase, along with working capital.

Until this mess is over, I won’t be attempting to license the famous Terminator rights.  Mind you, if the rights do become available, maybe you could buy them and cut me a sweet deal (lol).  My board game captures the flavor and story perfectly *(so if there are any major game companies out there give me a call because maybe you are able to afford it).

The key is to keep pursuing your projects and if one iron in the fire grows cold, grab another and get it red hot.  Sooner or later the Terminator iron may get hot again, but they sure better make the franchise generate a lot more buzz and money or it may not be worth as much as they are presently asking to charge licensees.

Sandford Tuey

admin@Playdigm.com

Persistence is Omnipotent!

I was talking with a television executive the other day and the subjects of ‘how are the ratings for television shows conducted and how are the internet shows included in this system.’

After a long conversation and a little searching on the internet, this was the best explanation I could locate.

http://blastr.com/2011/01/the-truth-about-tv-ratings-online-viewing-and-sci-fi-shows.php

For your questions contact admin@Playdigm.com

Cheers
Sandford Tuey
Playdigm Entertainment

The process of developing a story is complex and all kinds of things must be considered.

Normally I start with an idea that is unique or topical but with a twist. I add a great lead character surrounded by solid side-kicks and associated characters.  Of course, no story would be very good without a fantastic antagonist and the more bad  your bad guy/girl is – the more good your hero’s will be.

Then I write a simple Logline (the gist of the story in as few words as possible).  The best format I have come across but is not the only way to construct a Logline is as follows:  Film’s name and genre is about (protagonist’s name or type of person) who must do something (the goal) and if not able to achieve this, someone (the antagonist) will stop them or something bad will happen.

Here is an example – GALACTIC GLADIATORS is a Sci-Fi action adventure where animal rights, environmental activist Tessa Guess is forced to lead a coalition of abducted mutating humans and aliens in a guerrilla war against an evil extraterrestrial species – the Chaons, or our galaxy will be destroyed.

I then expand the Logline to a paragraph, then to a one page summary also known as a ‘one sheet’.  This captures the essence of the entire story for a reader to see to help them decide if they are interested in reading the entire story / screenplay.

Once the one sheet is edited to as powerful a presentation it can be, I write a three page synopsis – Act One, Act Two and Act Three (one page for each Act). This allows me to see the weak parts of the story.

Most writers create a Treatment or Synopsis.  This document can be as few as a couple pages but is normally ten to thirty pages but I have also seen them 100 plus.  This is used to solicite funds and interest from producers, production companies, and other souces who will pay writers to write the first draft of the script.

Then there are the standard polishes of the first draft and even a page one rewrite which can be caused by producers or stars wanting to change a major part of the concept, like make it a western when the story is presently set in space.  These kind of outside notes can drive a writer crazy but if you cashed their cheque – you can’t complain.

Once I have the draft of the screenplay that I am happy with, I give it to my agent or send it out to entertainment connections I have and see what kind of interest there is in it.  This of course is after a query letter has first received requests to see and read my material.

While the marketing is on going, I copy and past the screenplay into a Word file and add more detail and internal conflicts and thoughts, as well as a few hundred pages so that the same story concept can become a novel, a graphic novel, a video game script, etc.

This is the fastest way to diversify your writing and help you have multiple markets for the same material.  I recommend doing it this way since a screenplay is the quickest to write at only a maximum of 90 to 120 pages.

Of course, before you send any material out you should have as many people read and evaluate it, be they friends, professionals or your mom.  Everyone has seen a movie or read a graphic novel and will definitely have an opinion.  Listening doesn’t hurt and may even improve your story and help you profit from your effort.

Should you have any questions send them to admin@Playdigm.com

Destinations and goals are reached by planning them out.

Each step you take gets you closer to your final destination.

A map and list of the things you want to achieve allow you to focus.

Create your To Do list and check off each item as it is completed.

Record keeping lets you see the progress you are making.

Time tables with deadlines ensure you are getting results on schedule.

May you all achieve what you set your mind to do!

You can reach Sandford Tuey at admin@Playdigm.com

“Persistence is Ominipotent.”  – Sandford Tuey

To all my family, friends and business associates best wishes to you all and enjoy this holiday season.  Try to squeeze in some relax time and wonderful moments!  I know you can do it.  Happy holidays!!

It’s the thought that counts…

Sandford Tuey

Admin@Playdigm.com