It is important that the agreement provide enough time for the manufacturer to effectively produce and distribute the products in question, which customarily ranges from 3-7 years. The production company commonly receives from 3-10% of the gross profits from the sales of the merchandise. However, in rare instances, it can be as high as 15%. Arrangements can also be made for the production company to get an up-front guarantee in addition to a share of the profits. These sort of guarantees for the animated star of a successful film or TV show can range from $500,000 up to $1,000,000.

Tweety. (Bob Clampett/Warner Bros., 1942) © Warner Bros.

A company that wants to license a character on the international market will want to make sure the manufacturer protects its copyrights and trademarks. This is done by putting the appropriate copyright and trademark notices on the products. To verify this, production companies approve artwork and samples of the finished product. This is also done to make sure the characters "goodwill" is not compromised.

When a merchandising licensing agreement expires, the rights to the character are usually returned to the producer, including all of the materials used to produce the merchandise.

Manufacturers are not the only businesses that realize the value of animated characters. Recently, McDonald's, the international fast-food giant, and Disney announced a landmark cross-promotional agreement. The 10 year pact confirms how animated characters are being used by multinational corporations. The agreement, which kicks off on January 1, 1997, is worth $1 billion! Disney originally started cross-promoting its animated product with McDonald's in 1987 with the rerelease of Snow White and the Seven Dwarfs. However, for the past 5 years, Disney turned to another fast-food chain, Burger King, for its major cross-promotional efforts, including tie-ins for such films as The Lion King, Pocahontas and The Hunchback of Notre Dame.

Fred Flintstone (Hanna-Barbera, 1960) © Hanna Barbera.

The global appeal of such characters as Mickey Mouse, Snoopy, Donald Duck, Fred Flintstone or Bart Simpson, tie the world together with a common language, that of laughter. Seeing familiar friends in unfamiliar places makes the world a neighborly place.

As an art form, animation crosses all boundaries of language and geography. There are few areas in the entertainment industry that are as well suited for international merchandising as that involving animated characters. So, remember, no matter what your native tongue, Garfield speaks your language.

Pam Schechter is an entertainment attorney in New York City. Her practice includes a special concentration in the animation industry. She represents several animators including Eric Fogel, the creator of the MTV animated series The Head and Beavis and Butth-Head animation director Yvette Kaplan.