Royalty Income Study

Licensing proves to be a viable and growing industry, according to the most recent study sponsored by the International Licensing Industry Merchandisers’ Association (LIMA), in conjunction with the Yale School of Management and the Harvard Business School. According to the report, property and trademark owners received royalties of $5.84 billion from manufacturers who paid for the right to use trademarks, characters, logos and artwork to sell products in the United States in 2000, representing a $248 million increase (4.4%) in the last year. The study has found that entertainment/character licensing continues to be the strongest category in the licensing business, maintaining a 44.3% share of the market. The trademarks/brands and fashion categories are next in line at 16.8%, each. The single largest percentage increase within any major category was in the business of licensing fashion properties, which saw an impressive 12% increase from the prior year. The survey is the most comprehensive and significant study to date on the business of licensing. It relies primarily on direct responses from licensors and licensing agents as to the actual royalty income that they received in 2000, according to LIMA’s general counsel, Greg Battersby, who spearheads the program. Battersby said, “By coordinating our efforts through academia to research the data, we are ensuring that the information will be the most accurate research available which would make it a valuable proactive tool in the development of effective marketing strategies for the business of licensing.” LIMA, the trade association for the licensing industry, is an organization of licensors, manufacturers, retailers and support organizations. LIMA is the official sponsor of L!CENSING 2001 International, the largest tradeshow for the worldwide business of consumer product licensing, marketing and merchandising.